Stepped-up basis

Appropriate basis adjustments must be made to the adjusted basis of the contributing partner’s partnership interest and to the adjusted basis of the distributed property to reflect the gain or loss recognized ( Reg. §1.704-4(e)(1)). Thus, to the extent that gain is recognized by the contributing partner, the basis in his partnership interest will be increased. The adjusted basis of the property in the hands of distributee partners is determined under Code Sec. 732.

Quick Contact Form

Quick Contact Form