722 Partners' "Outside Basis" introduces the concept of "outside basis" for contributing partners. Each partner's basis in the partnership interest received is determined by the sum of the adjusted basis in any contributed property and any cash contributed. This "outside basis" allows partners to tack the holding period they had in the contributed property to the holding period of their partnership interest, emphasizing the continuity of their investment. outside basis: Partner's basis= basis in partnership Section 723 Partnership's "Inside Basis" addresses the partnership's perspective, introducing the concept of "inside basis." The partnership takes a transferred basis in the contributed property, equivalent to that of the contributing partner. Additionally, the partnership is allowed to tack the holding periods of the partners to its own. This reflects the idea that the partnership inherits the characteristics of the contributed property from the partners, maintaining continuity in the holding periods. Inside basis: partnership basis in assets