§205.  Determination of basis of partner's interest

A.  General rule.  The adjusted basis of a partner's interest in a partnership shall, except as provided in Subsection B of this Section, be the basis of such interest determined under R.S. 47:210 (relating to contributions to a partnership) or R.S. 47:216 (relating to transfers of partnership interests).  

(1)  increased by the sum of his distributive share for the taxable year and prior taxable years of:

(a)  taxable income of the partnership as determined under R.S. 47:203A,

(b)  income of the partnership exempt from tax under this Chapter, and

(c)  the excess of the deductions for depletion over the basis of the property subject to depletion; and

(2)  decreased (but not below zero) by distributions by the partnership as provided in R.S. 47:214 and by the sum of his distributive share for the taxable year and prior taxable years of:

(a)  losses of the partnership, and

(b)  expenditures of the partnership not deductible in computing its taxable income and not properly chargeable to capital account.  

B.  Alternative rule.  The collector shall prescribe by regulations the circumstances under which the adjusted basis of a partner's interest in a partnership may be determined by reference to his proportionate share of the adjusted basis of partnership property upon a termination of the partnership.

Amended by Acts 1950, No. 445, §1; Acts 1958, No. 441, §1.