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August 4, 2022
2022-1182

New final regulations streamline IRC Section 754 election for partnerships and their partners

The IRS has issued final regulations (TD 9963) addressing the requirements for making a valid election to adjust the basis of partnership property when the partnership distributes property or transfers an interest in the partnership. According to the preamble, the final regulations "remove a regulatory burden in making an election to adjust the basis of partnership property." They are effective as of August 5, 2022. A Tax Alert is forthcoming.

 

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