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A New Partner’s Basis and the Partnership’s Basis Don’t Always Match. A 754 Election Is How You Close the Gap.

June 13, 2026 Justin Smiley Comments Off on A New Partner’s Basis and the Partnership’s Basis Don’t Always Match. A 754 Election Is How You Close the Gap.

When you pay full price to buy into a partnership, the assets inside it still carry their old basis, and that difference can land on your tax return. Someone buys into a partnership. They pay what the interest is worth today, sit down at their first meeting, and reasonably assume their share of everything inside […]

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