§754 Basis Adjustment Valuation
A §754 basis adjustment valuation provides the asset-level fair values a partnership needs to compute basis adjustments under IRC §743(b) or §734(b) after an interest is transferred or property is distributed.
Signed by a credentialed analystFairMarketValue
Riverside Properties Partners, LP
At a glance
- Basis
- IRC §754, §743(b), §734(b), and §755
- Prepared by
- A credentialed FMV valuation analyst
- Deliverable
- Signed report (PDF)
- Used by
- Accounting firms
- Delivered to
- The ordering bank's or firm's vault and the client's vault
When it is needed
- A partner dies or sells an interest and the partnership has a §754 election in place.
- A distribution triggers a §734(b) adjustment.
What the report contains
- Asset-level values at the transfer date
- Allocation schedule under the §755 regulations
- Support for the return preparer
Last updated October 24, 2026
Standards and sources
- IRC §743(b) and §734(b)
- Basis adjustments
- Treas. Reg. §1.755-1
- Allocation among partnership assets
Documents we need
- Partnership agreement
- Financial statements
- Transfer terms
How an engagement works
Scope
We confirm the purpose, standard of value, valuation date, and addressee, then issue the engagement letter.
Intake
You or your client upload documents against a checklist. Open items stay visible until the file is complete.
Analysis
A credentialed analyst prepares the valuation and signs the conclusion.
Delivery
The signed PDF goes to your vault and your client's. We keep the workfile for later questions.
§754 basis adjustment valuation questions
What is a §754 basis adjustment valuation?
A §754 basis adjustment valuation is an asset-by-asset valuation of a partnership's property at the date of a transfer or distribution, used to compute the inside basis adjustment under IRC §743(b) or §734(b). FairMarketValue (FMV) allocates the values under the §755 regulations for the return preparer.
When does a §754 election require a valuation?
A partnership with a §754 election needs a valuation when a partner sells an interest or dies, which triggers a §743(b) adjustment, or when a distribution triggers a §734(b) adjustment.
Is a basis adjustment ever required without a §754 election?
Yes. A §743(b) adjustment is mandatory when the partnership has a substantial built-in loss, generally more than $250,000, immediately after the transfer, even if no §754 election is in place.
Why does a §754 valuation need asset-level values?
The §755 regulations allocate the adjustment among classes of partnership property, with any residual assigned to goodwill. That requires a fair value for each asset class, including real estate, equipment, and intangibles.
What documents does a §754 basis adjustment valuation require?
A §754 basis adjustment valuation requires the partnership agreement, financial statements, and the terms of the transfer or distribution.
How is the fee for a §754 basis adjustment valuation set?
FMV quotes the fee for a §754 basis adjustment valuation after reviewing the scope. The fee is fixed before work starts and does not depend on the conclusion of value.
Trust and reliability
SOC 2 Type II and ISO 27001 audits are underway. Our security program is documented in the FMV Trust Center.
Get a fixed-fee quote
Tell us the purpose, the company, and the valuation date. We confirm scope and quote a fixed fee before work begins.