TaxGuided
United States IRC sections

Statute section

IRC section 754

Manner of electing optional adjustment to basis of partnership property

Country

United States

Section

754

Updated

2026-05-20

Operative text

Section 754 allows a partnership to elect to adjust the basis of partnership property on the transfer of a partnership interest (Section 743(b)) and on distributions (Section 734(b)). The election is binding for all future years unless revoked with IRS consent.

Cross-references

26 U.S.C. 73426 U.S.C. 743

Related citations

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Primary sources

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.