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Accounts are required to be adjusted pursuant to such regulation. For purposes of computing the adjustments under section 743(b) of the Code, the Trust is authorized (but not required) to adopt a convention whereby the price paid by a transferee of Shares will be deemed to be the lowest quoted closing price of the Shares on the Exchange during the calendar month in which such transfer is deemed to occur pursuant to Section 6.3 without regard to the actual price paid by the transferee.", "snippet_links": [{"key": "to-the-extent", "type": "clause", "offset": [0, 13]}, {"key": "adjustment-to", "type": "clause", "offset": [17, 30]}, {"key": "basis-of", "type": "clause", "offset": [39, 47]}, {"key": "trust-property", "type": "clause", "offset": [52, 66]}, {"key": "pursuant-to-section", "type": "clause", "offset": [67, 86]}, {"key": "the-code", "type": "clause", "offset": [107, 115]}, {"key": "treasury-regulation", "type": "clause", "offset": [141, 160]}, {"key": "capital-accounts", "type": "clause", "offset": [231, 247]}, {"key": "the-capital", "type": "clause", "offset": [282, 293]}, {"key": "the-adjustment", "type": "clause", "offset": [343, 357]}, {"key": "the-basis", "type": "clause", "offset": [368, 377]}, {"key": "the-asset", "type": "clause", "offset": [381, 390]}, {"key": "gain-or-loss", "type": "clause", "offset": [458, 470]}, {"key": "to-the-shareholders", "type": "definition", "offset": [500, 519]}, {"key": "consistent-with-the", "type": "clause", "offset": [532, 551]}, {"key": "pursuant-to-such", "type": "clause", "offset": [619, 635]}, {"key": "for-purposes-of", "type": "clause", "offset": [648, 663]}, {"key": "the-trust", "type": "clause", "offset": [724, 733]}, {"key": "not-required", "type": "clause", "offset": [753, 765]}, {"key": "the-price", "type": "clause", "offset": [797, 806]}, {"key": "the-shares", "type": "clause", "offset": [894, 904]}, {"key": "the-exchange", "type": "clause", "offset": [908, 920]}, {"key": "calendar-month", "type": "definition", "offset": [932, 946]}, {"key": "section-63", "type": "clause", "offset": [1001, 1012]}, {"key": "actual-price", "type": "definition", "offset": [1035, 1047]}, {"key": "by-the-transferee", "type": "clause", "offset": [1053, 1070]}], "samples": [{"hash": "hVm0Dsq3qSO", "uri": "/contracts/hVm0Dsq3qSO#code-section-754-adjustments", "label": "Trust Agreement (Nuveen Diversified Commodity Fund)", "score": 26.9110202789, "published": true}, {"hash": "4VW5sBN8Y6b", "uri": "/contracts/4VW5sBN8Y6b#code-section-754-adjustments", "label": "Trust Agreement (Nuveen Long/Short Commodity Total Return Fund)", "score": 26.9110202789, "published": true}, {"hash": "dyaPzO3Ur68", "uri": "/contracts/dyaPzO3Ur68#code-section-754-adjustments", "label": "Trust Agreement (Nuveen Long/Short Commodity Total Return Fund)", "score": 23.7186851501, "published": true}], "size": 14, "hash": "8d88387a6b881558a98e0579ff3683ee", "id": 10}], "next_curs": "CmUSX2oVc35sYXdpbnNpZGVyY29udHJhY3RzckELEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IiVjb2RlLXNlY3Rpb24tNzU0LWFkanVzdG1lbnRzIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"children": [["", ""], ["curative-allocations", "Curative Allocations"], ["assumptions-appraisal-costs", "Assumptions; Appraisal Costs"], ["general-procedures", "General Procedures"], ["qualifications-of-appraisers", "Qualifications of Appraisers"]], "title": "Code Section 754 Adjustments", "parents": [["special-allocations", "Special Allocations"], ["allocations-for-capital-account-purposes", "Allocations for Capital Account Purposes"], ["allocations-and-distributions", "Allocations and Distributions"], ["special-allocation-rules", "Special Allocation Rules"], ["allocations", "Allocations"]], "size": 1131, "id": "code-section-754-adjustments", "related": [["code-section-754-adjustment", "Code Section 754 Adjustment", "Code Section 754 Adjustment"], ["section-754-adjustments", "Section 754 Adjustments", "Section 754 Adjustments"], ["section-754-adjustment", "Section 754 Adjustment", "Section 754 Adjustment"], ["section-704c-allocations", "Section 704(c) Allocations", "Section 704(c) Allocations"], ["section-754-election", "Section 754 Election", "Section 754 Election"]], "related_snippets": [], "updated": "2026-04-02T05:40:27+00:00", "also_ask": ["What negotiation leverage does a Section 754 election provide in partnership transactions?", "What are the essential drafting elements to ensure a valid and effective Section 754 adjustment?", "What are the primary risks or pitfalls if a Section 754 election is omitted or improperly executed?", "How do Section 754 adjustments compare to similar basis adjustment mechanisms in other jurisdictions or entity types?", "What are the main challenges to enforceability or IRS scrutiny of Section 754 adjustments in audits or litigation?"], "drafting_tip": "Specify when Section 754 elections apply to clarify tax treatment; detail adjustment procedures to ensure compliance; reference relevant IRS regulations to avoid misinterpretation.", "explanation": "The Code Section 754 Adjustments clause allows a partnership to adjust the basis of its assets when there is a transfer of an interest or a distribution of property. In practice, this means that when a partner sells their interest or receives a distribution, the partnership can elect to increase or decrease the tax basis of its assets to reflect the new partner's purchase price or the distributed asset's value. This adjustment ensures that tax attributes are properly aligned with the economic interests of the partners, preventing double taxation or tax benefits from being duplicated, and thereby maintaining fairness and accuracy in the allocation of income, deductions, and gains among partners."}, "json": true, "cursor": ""}}