Internal Revenue Code · 26 U.S.C.
§ 754. Manner of electing optional adjustment to basis of partnership property
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 754
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- October 4, 1976 by Pub. L. 94–455
- Length
- 139 words · about 1 min to read
- Cross-references
- cites 2; cited by 4 Code sections and 49 other regulations
- Regulations
- 1 issued under this section
If a partnership files an election, in accordance with regulations prescribed by the Secretary, the basis of partnership property shall be adjusted, in the case of a distribution of property, in the manner provided in section 734 and, in the case of a transfer of a partnership interest, in the manner provided in section 743. Such an election shall apply with respect to all distributions of property by the partnership and to all transfers of interests in the partnership during the taxable year with respect to which such election was filed and all subsequent taxable years. Such election may be revoked by the partnership, subject to such limitations as may be provided by regulations prescribed by the Secretary.
(Aug. 16, 1954, ch. 736, 68A Stat. 251; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 754
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
- § 734 Adjustment to basis of undistributed partnership property where section 754 election or substantial basis reduction
- § 743 Special rules where section 754 election or substantial built-in loss
Cited by 4 Code sections
- § 732(d) Basis of distributed property other than money
- § 734(a) Adjustment to basis of undistributed partnership property where section 754 election or substantial basis reduction
- § 743(a) Special rules where section 754 election or substantial built-in loss
- § 901(m)(2)(C) Taxes of foreign countries and of possessions of United States
Cited in 49 regulations not issued under it
- § 1.58-2 General rules for conduit entities; partnerships and partners.
- § 1.59A-0 Table of contents.
- § 1.59A-7 Application of base erosion and anti-abuse tax to partnerships.
- § 1.163(j)-6 Application of the section 163(j) limitation to partnerships and subchapter S corporations.
- § 1.168(k)-0 Table of contents.
- § 1.168(k)-1 Additional first year depreciation deduction.
- § 1.168(k)-2 Additional first year depreciation deduction for property acquired and placed in service after September 27, 2017.
- § 1.197-1T Certain elections for intangible property (temporary).
- § 1.197-2 Amortization of goodwill and certain other intangibles.
- § 1.199A-2 Determination of W-2 wages and unadjusted basis immediately after acquisition of qualified property.
- § 1.250(b)-2 Qualified business asset investment (QBAI).
- § 1.362-3 Basis of importation property acquired in loss importation transaction.
- § 1.460-4 Methods of accounting for long-term contracts.
- § 1.613A-3 Exemption for independent producers and royalty owners.
- § 1.701-2 Anti-abuse rule.
- § 1.704-1 Partner's distributive share.
- § 1.704-4 Distribution of contributed property.
- § 1.705-2 Basis adjustments coordinating sections 705 and 1032.
- § 1.708-1 Continuation of partnership.
- § 1.731-2 Partnership distributions of marketable securities.
- § 1.732-1 Basis of distributed property other than money.
- § 1.732-2 Special partnership basis of distributed property.
- § 1.734-1 Optional adjustment to basis of undistributed partnership property.
- § 1.734-2 Adjustment after distribution to transferee partner.
Show 25 more
- § 1.737-1 Recognition of precontribution gain.
- § 1.737-3 Basis adjustments; Recovery rules.
- § 1.743-1 Optional adjustment to basis of partnership property.
- § 1.751-1 Unrealized receivables and inventory items.
- § 1.752-7 Partnership assumption of partner's § 1.752-7 liability on or after June 24, 2003.
- § 1.755-1 Rules for allocation of basis.
- § 1.884-1 Branch profits tax.
- § 1.901(m)-2 Covered asset acquisitions and relevant foreign assets.
- § 1.901(m)-4 Determination of basis difference.
- § 1.951A-3 Qualified business asset investment.
- § 1.1045-1 Application to partnerships.
- § 1.1245-1 General rule for treatment of gain from dispositions of certain depreciable property.
- § 1.1245-2 Definition of recomputed basis.
- § 1.1250-1 Gain from dispositions of certain depreciable realty.
- § 1.1250-3 Exceptions and limitations.
- § 1.1400L(b)-1 Additional first year depreciation deduction for qualified New York Liberty Zone property.
- § 1.1400Z2(b)-1 Inclusion of gains that have been deferred under section 1400Z-2(a).
- § 1.1400Z2(c)-1 Investments held for at least 10 years.
- § 1.1446-2 Determining a partnership's effectively connected taxable income allocable to foreign partners under section 704.
- § 1.1502-13 Intercompany transactions.
- § 1.6011-18 Certain partnership related-party basis adjustment transactions as transactions of interest.
- § 1.6031(c)-1T Nominee reporting of partnership information (temporary).
- § 301.6231(a)(3)-1 Partnership items.
- § 301.6241-1 Definitions.
- § 301.9100-2 Automatic extensions.
Amendment history
From the source credit and the official notes, newest first.
- Enacted by Pub. L. 94–455
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter K Partners and Partnerships
- Part II CONTRIBUTIONS, DISTRIBUTIONS, AND TRANSFERS
- Subpart D Provisions Common to Other Subparts
Nearby sections
- § 751 Unrealized receivables and inventory items
- § 752 Treatment of certain liabilities
- § 753 Partner receiving income in respect of decedent
- § 754 Manner of electing optional adjustment to basis of partnership property
- § 755 Rules for allocation of basis
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.