Cash basis defined
For purposes of subparagraph (B), a partner’s cash basis in a partnership shall be equal to the adjusted basis of such partner’s interest in the partnership, determined without regard to—
(i)#
any liability of the partnership, and
(ii)#
any amount borrowed by the partner with respect to such partnership which—
(I) was arranged by the partnership or by any person who participated in the organization, sale, or management of the partnership (or any person related to such person within the meaning of section 465(b)(3)(C)), or
(II) was secured by any asset of the partnership.
(ii)(I)#
was arranged by the partnership or by any person who participated in the organization, sale, or management of the partnership (or any person related to such person within the meaning of section 465(b)(3)(C)), or
(ii)(II)#
was secured by any asset of the partnership.