Partnerships, with a section 754 election in effect, are required to adjust the basis of partnership property following certain transfers of partnership interests. The regulations require the partnership to attach a statement to its partnership return indicating the adjustment and how it was allocated among the partnership property.
US Code:
26 USC 7805
Name of Law: Rules and regulations
US Code:
26 USC 743
Name of Law: Optional adjustment to basis of partnership property
US Code:
26 USC 751
Name of Law: Unrealized receivables and inventory items
US Code:
26 USC 755
Name of Law: Rules for allocation of basis
US Code:
26 USC 734
Name of Law: Optional adjustment to basis of undistributed partnership property
US Code:
26 USC 732
Name of Law: Basis of distributed property other than money
US Code:
26 USC 1017
Name of Law: Discharge of indebtedness
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Supporting Statement.doc
REG-209682-94 (TD 8847 - Final) Adjustments Following Sales of Partnership Interests