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.