---
kind: "section"
citation: "26 U.S.C. § 723"
title: "26"
title_heading: "Internal Revenue Code"
number: "723"
heading: "Basis of property contributed to partnership"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/723"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter K — Partners and Partnerships"
  - "Part II — Contributions, Distributions, and Transfers"
  - "Subpart A — Contributions to a Partnership"
---

# §723. Basis of property contributed to partnership


The basis of [property](/usc/26/317.md?p=a) contributed to a [partnership](/usc/26/761.md?p=a) by a [partner](/usc/26/761.md?p=b) shall be the adjusted basis of such [property](/usc/26/317.md?p=a) to the contributing [partner](/usc/26/761.md?p=b) at the time of the contribution increased by the amount (if any) of gain recognized under [section 721(b)](/usc/26/721.md?p=b) to the contributing [partner](/usc/26/761.md?p=b) at such time.


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 245; Pub. L. 94–455, title XXI, § 2131(c), Oct. 4, 1976, 90 Stat. 1924; Pub. L. 98–369, div. A, title VII, § 722(f)(1), July 18, 1984, 98 Stat. 974.)

## Notes

### Editorial Notes

### Amendments

1984—Pub. L. 98–369 inserted “under section 721(b)” after “gain recognized”.

1976—Pub. L. 94–455 inserted “increased by the amount (if any) of gain recognized to the contributing partner at such time” after “at the time of the contribution”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1984 Amendment

Amendment by Pub. L. 98–369 effective as if included in amendments made by section 2131 of the Tax Reform Act of 1976, Pub. L. 94–455, see section 722(f)(2) of Pub. L. 98–369, set out as a note under section 722 of this title.

### Effective Date of 1976 Amendment

For effective date of amendment made by Pub. L. 94–455, see section 2131(f)(3)–(5) of Pub. L. 94–455, set out as a note under section 721 of this title.