La. Revenue and Taxation § 47:215

Current with changes from the 2024 legislative session effective on or before 7/1/2024, from Acts 1-3, 6-671

Section 47:215 - Optional adjustment to basis of undistributed partnership property

A. General rule. The basis of partnership property shall not be adjusted as the result of a distribution of property to a partner unless the election, provided in R.S. 47:220.1 (relating to optional adjustment to basis of partnership property), is in effect with respect to such partnership.

B. Method of adjustment. In the case of a distribution of property to a partner, a partnership, with respect to which the election provided in R.S. 47:220.1 is in effect, shall:

(1) Increase the adjusted basis of partnership property by:

(a) the amount of any gain recognized to the distributee partner with respect to such distribution under R.S. 47:212 A(1), and

(b) in the case of distributed property to which R.S. 47:213 A(2) or B applies, the excess of the adjusted basis of the distributed property to the partnership immediately before the distribution as adjusted by R.S. 47:213 D over the basis of the distributed property to the distributee, as determined under R.S. 47:213, or

(2) Decrease the adjusted basis of partnership property by:

(a) the amount of any loss recognized to the distributee partner with respect to such distribution under R.S. 47:212 A(2), and

(b) in the case of distributed property to which R.S. 47:213 B applied, the excess of the basis of the distributed property to the distributee, as determined under R.S. 47:213, over the adjusted basis of the distributed property to the partnership immediately before such distribution (as adjusted in accordance with R.S. 47:213 D).

C. Allocation of basis. The allocation of basis among partnership properties where Subsection B is applicable shall be made in accordance with the rules provided in R.S. 47:220.2.

La. Revenue and Taxation § 47:215

Added by Acts 1958, No. 441, §2.