In the case of a distribution by a partnership to a partner other than in liquidation
of a partner's interest, the adjusted basis to such partner of his interest in the
partnership shall be reduced (but not below zero) by—
I.R.C. § 733(2)
the amount of the basis to such partner of distributed property other than money,
as determined under section 732.
(Aug. 16, 1954, ch. 736, 68A Stat. 247.)