# 26 U.S.C. § 723: Basis of property contributed to partnership

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s723>. Cite pinpoints as 26 U.S.C. § 723(a)(1).

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.

## Regulations

- [Treas. Reg. § 1.723-1](/26/reg/1.723-1.md): Basis of property contributed to partnership. (interprets § 723)

## Final rules

- [69 FR 42551](https://www.federalregister.gov/documents/2004/07/16/04-15833/partnership-transactions-involving-long-term-contracts) (2004): Partnership Transactions Involving Long-Term Contracts

## Leading cases

- [McDougal v. Commissioner, 62 T.C. 720 (1974)](https://www.courtlistener.com/opinion/4703916/mcdougal-v-commissioner/)

## Connections

Cites: § 721 Nonrecognition of gain or loss on contribution

Cited by: none

Derived from: 1939 § 113(a)(13)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 245
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1924
- 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 974