4 PROBLEM Basis of a Partner's Partnership Interest Code References: SS 702(a), 703(a), 704(d), 705(a), 733, 752(a), and 752(b). See briefly: SS 109, 264, 1019, and 1031(a) Regulations: SS 1.704-1(d), 1.731-1(a)(1)(ii), 1.752-2(a), 1.752-2(b), 1.752- 2(f) examples (1), (3), and (4), and 1.752-3 tele. QUESTIONS 1. A and B are partners in an equal general partnership. A has a basis of $30,000 in his partnership interest. B has a basis of $10,000 in her partnership interest. What is the effect of each of the following events on the basis of each partner's partnership interest? When is the effect taken into account? a. The partnership makes a charitable contribution of $5,000. b. Each partner's distributive share of partnership taxable income is $10,000, 4P-1