[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.723-1]

[Page 501]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.723-1  Basis of property contributed to partnership.

    The basis to the partnership of property contributed to it by a 
partner is the adjusted basis of such property to the contributing 
partner at the time of the contribution. Since such property has the 
same basis in the hands of the partnership as it had in the hands of the 
contributing partner, the holding period of such property for the 
partnership includes the period during which it was held by the partner. 
See section 1223(2). For elective adjustments to the basis of 
partnership property arising from distributions or transfers of 
partnership interests, see sections 732(d), 734(b), and 743(b).

                     distributions by a partnership