26 U.S.C. § 754
Section 754 · Manner of electing optional adjustment to basis of partnership property
Amended 2 times on record
Applied in 41 court decisions — leading case Stobie Creek Investments LLC v. United States (2010)
Most recently applied in 23 Or. Tax 107 - Cook v. Dept. of Rev. (August 2018)
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
If a partnership files an election, in accordance with regulations prescribed by the Secretary, the basis of partnership property shall be adjusted, in the case of a distribution of property, in the manner provided in section 734 and, in the case of a transfer of a partnership interest, in the manner provided in section 743. Such an election shall apply with respect to all distributions of property by the partnership and to all transfers of interests in the partnership during the taxable year with respect to which such election was filed and all subsequent taxable years. Such election may be revoked by the partnership, subject to such limitations as may be provided by regulations prescribed by the Secretary.
Editorial notes U.S. Code · Office of the Law Revision Counsel
Amendments
1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.
Cross References
Optional adjustment to basis of—
Partnership property, see section 743 of this title.
Undistributed partnership property, see section 734 of this title.