T11F-Chp-13-05F- Ptshp-Invest Assets-Basis-Reg 1-722-1

T11F-Chp-13-05F- Ptshp-Invest Assets-Basis-Reg 1-722-1 -...

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b60d1aa3ada38fe90a2a6bac0ea443629f85224f.xls 221 Basis of contributing partner's interest.-Reg. 1.722-1 The basis to a partner of a partnership interest acquired by a contribution of property, including money, to the partnership shall be: the amount of money contributed plus the adjusted basis at the time of contribution of any property contributed. If the acquisition of an interest in partnership capital results in taxable income to a partner, such income is added to the basis of the partner's interest. If the contributed property is subject to indebtedness or if liabilities of the partner are assumed by the partnership, the basis of the contributing partner's interest shall be reduced by the portion of the indebtedness assumed by the other partners, since the partnership's assumption of his indebtedness is treated as a distribution of money to the partner. Conversely, the assumption by the other partners of a portion of the contributor's indebtedness is treated as a contribution of money by them. Example (1).
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T11F-Chp-13-05F- Ptshp-Invest Assets-Basis-Reg 1-722-1 -...

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