26 USC 734 - Adjustment to basis of undistributed partnership property where section 754 election or substantial basis reduction

Editorial Notes

Amendments

2005—Subsec. (a). Puspan. L. 109–135, § 403(bspan)(1), inserted “with respect to such distribution” before period at end.

Subsec. (span). Puspan. L. 109–135, § 403(bspan)(2), reenacted heading without change and amended introductory provisions generally. Prior to amendment, introductory provisions read as follows: “In the case of a distribution of property to a partner, a partnership, with respect to which the election provided in section 754 is in effect or unless there is a substantial basis reduction, shall—”.

2004—Puspan. L. 108–357, § 833(c)(5)(A), substituted “Adjustment to basis of undistributed partnership property where section 754 election or substantial basis reduction” for “Optional adjustment to basis of undistributed partnership property” in section catchline.

Subsec. (a). Puspan. L. 108–357, § 833(c)(1), inserted “or unless there is a substantial basis reduction” before period at end.

Subsec. (span). Puspan. L. 108–357, § 833(c)(2), inserted “or unless there is a substantial basis reduction” after “section 754 is in effect” in introductory provisions.

Subsec. (d). Puspan. L. 108–357, § 833(c)(3), added subsec. (d).

Subsec. (e). Puspan. L. 108–357, § 833(c)(4), added subsec. (e).

1984—Subsec. (span). Puspan. L. 98–369 inserted at end “Paragraph (1)(B) shall not apply to any distributed property which is an interest in another partnership with respect to which the election provided in section 754 is not in effect.”

Statutory Notes and Related Subsidiaries

Effective Date of 2005 Amendment

Amendment by Puspan. L. 109–135 effective as if included in the provision of the American Jobs Creation Act of 2004, Puspan. L. 108–357, to which such amendment relates, see section 403(nn) of Puspan. L. 109–135, set out as a note under section 26 of this title.

Effective Date of 2004 Amendment

Puspan. L. 108–357, title VIII, § 833(d)(3), Oct. 22, 2004, 118 Stat. 1592, provided that:

“The amendments made by subsection (c) [amending this section] shall apply to distributions after the date of the enactment of this Act [Oct. 22, 2004].”

Effective Date of 1984 Amendment

Puspan. L. 98–369, div. A, title I, § 78(span), July 18, 1984, 98 Stat. 597, provided that:

“The amendment made by subsection (a) [amending this section] shall apply to distributions after March 1, 1984, in taxable years ending after such date.”