---
kind: "section"
citation: "26 U.S.C. § 742"
title: "26"
title_heading: "Internal Revenue Code"
number: "742"
heading: "Basis of transferee partner’s interest"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/742"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter K — Partners and Partnerships"
  - "Part II — Contributions, Distributions, and Transfers"
  - "Subpart C — Transfers of Interests in a Partnership"
---

# §742. Basis of transferee partner’s interest


The basis of an [interest](/usc/26/856.md?p=f-1) in a [partnership](/usc/26/761.md?p=a) acquired other than by contribution shall be determined under part II of subchapter O ([sec. 1011](/usc/26/1011.md) and following).


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 249.)