Question
How does §743(b) adjustment work when a partnership interest is sold?
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Answer
It adjusts inside basis for the transferee partner only.
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Question
Why does a §754 election matter on a transfer of a partnership interest?
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Answer
It aligns inside basis with the transferee’s outside basis.
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Question
Why can a change in a partner’s liability share create a deemed contribution or deemed distribution?
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Answer
Because liability shifts change the partner’s basis.
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Question
Why is a partner’s contribution of property generally tax-free under §721?
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Answer
No gain or loss is recognized on contribution.
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