Par. 6. Section 1.743-1 is amended by adding paragraphs (d)(4) and (j)(7) to read as follows:
* * * * *
(d) * * *
(4) Coordination with derived basis. See § 1.961-5(d) for a rule coordinating the application of this paragraph (d) with derived basis that transfers to a transferee.
* * * * *
(j) * * *
(7) Covered distributions treated as previously taxed earnings and profits. See § 1.961-4(c)(2)(iii) for rules regarding the use of a positive basis adjustment under section 743(b) upon the receipt of a covered distribution that is treated as previously taxed earnings and profits with respect to certain direct or indirect partners of the partnership.
* * * * *