26 USC § 723 - Basis of property contributed to partnership

---
identifier: "/us/usc/t26/s723"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 723 - Basis of property contributed to partnership"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "723"
section_name: "Basis of property contributed to partnership"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "K"
subchapter_name: "Partners and Partnerships"
part_number: "II"
part_name: "CONTRIBUTIONS, DISTRIBUTIONS, AND TRANSFERS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Aug. 16, 1954, ch. 736, 68A Stat. 245; Pub. L. 94–455, title XXI, § 2131(c), Oct. 4, 1976, 90 Stat. 1924; Pub. L. 98–369, div. A, title VII, § 722(f)(1), July 18, 1984, 98 Stat. 974.)"
---


# § 723. Basis of property contributed to partnership

The basis of property contributed to a partnership by a partner shall be the adjusted basis of such property to the contributing partner at the time of the contribution increased by the amount (if any) of gain recognized under section 721(b) to the contributing partner at such time.

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**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 245; Pub. L. 94–455, title XXI, § 2131(c), Oct. 4, 1976, 90 Stat. 1924; Pub. L. 98–369, div. A, title VII, § 722(f)(1), July 18, 1984, 98 Stat. 974.)

## Editorial Notes

### Amendments

1984— inserted “under section 721(b)” after “gain recognized”.

1976— inserted “increased by the amount (if any) of gain recognized to the contributing partner at such time” after “at the time of the contribution”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1984 Amendment

Amendment by  effective as if included in amendments made by section 2131 of the Tax Reform Act of 1976, , see , set out as a note under .

### Effective Date of 1976 Amendment

For effective date of amendment made by , see section 2131(f)(3)–(5) of , set out as a note under .