This section says partnership property basis is generally not adjusted after a distribution to a partner unless the partnership election in R.S. 47:220.1 is in effect.
§215. Optional adjustment to basis of undistributed partnership property A. General rule. The basis of partnership property shall not be adjusted as the result of a distribution of property to a partner unless the election, provided in R.S. 47:220.1 (relating to optional adjustment to basis of partnership property), is in effect with respect to such partnership. B. Method of adjustment. In the case of a distribution of property to a partner, a partnership, with respect to which the election provided in R.S. 47:220.1 is in effect, shall: (1) Increase the adjusted basis of partnership property by: (a) the amount of any gain recognized to the distributee partner with respect to such distribution under R.S. 47:212 A(1), and (b) in the case of distributed property to which R.S. 47:213 A(2) or B applies, the excess of the adjusted basis of the distributed property to the partnership immediately before the distribution as adjusted by R.S. 47:213 D over the basis of the distributed property to the distributee, as determined under R.S. 47:213, or (2) Decrease the adjusted basis of partnership property by: (a) the amount of any loss recognized to the distributee partner with respect to such distribution under R.S. 47:212 A(2), and (b) in the case of distributed property to which R.S. 47:213 B applied, the excess of the basis of the distributed property to the distributee, as determined under R.S. 47:213, over the adjusted basis of the distributed property to the partnership immediately before such distribution (as adjusted in accordance with R.S. 47:213 D). C. Allocation of basis. The allocation of basis among partnership properties where Subsection B is applicable shall be made in accordance with the rules provided in R.S. 47:220.2. Added by Acts 1958, No. 441, §2.