754 Revaluation - Effect on Basis

[Beersheba]

A 70 year-old partnership has memberships that are children and grandchildren of the original partners. Due to the passing of the last original partner, the partnership was able to revalue its property via s.754. The property consists of mostly real estate and some personal property. The real estate was re-valued upward.

The remaining partners' capital balance gets a boost. I don't see how it can be otherwise.

But what about the basis of the remaining partners? None of the elements which calculate the basis appear to be altered by the increase.

[Beersheba]

I'm not getting much response - maybe folks are really busy right now.

I've posted this because a situation may be forthcoming. I've also been enamored with the difference between a partner's capital account and his basis, and the difficulty of sometimes having to explain this to clientele.