# 26 U.S.C. § 742: Basis of transferee partner’s interest

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s742>. Cite pinpoints as 26 U.S.C. § 742(a)(1).

The basis of an interest in a partnership acquired other than by contribution shall be determined under part II of subchapter O (sec. 1011 and following).

## Regulations

- [Treas. Reg. § 1.742-1](/26/reg/1.742-1.md): Basis of transferee partner's interest. (interprets § 742)

## Final rules

- [82 FR 6235](https://www.federalregister.gov/documents/2017/01/19/2017-01365/application-of-modified-carryover-basis-to-general-basis-rules) (2017): Application of Modified Carryover Basis to General Basis Rules

## Leading cases

- [Casey v. Commissioner, 38 T.C. 357 (1962)](https://www.courtlistener.com/opinion/4701115/casey-v-commissioner/)
- [Quick Trust v. Commissioner, 54 T.C. 1336 (1970)](https://www.courtlistener.com/opinion/4702853/quick-trust-v-commissioner/)
- [Shaheen v. Commissioner, T.C. Memo. 1982-445](https://www.courtlistener.com/opinion/4826832/shaheen-v-commissioner/)

## Connections

Cites: none

Cited by: § 705 Determination of basis of partner’s interest

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 249