26-U.S.C.-761
§761 – Terms Defined
Pathway
Title 26 > Subtitle A > Chapter 1 > Subchapter K > Part III > Section 761
Details
- Reference: Section 761
- Legend: §761 – Terms Defined
- USCode Year: 2013
Provision Content
(a) Partnership
For purposes of this subtitle, the term partnership includes a syndicate, group, pool, joint venture, or other unincorporated organization through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this title, a corporation or a trust or estate. Under regulations the Secretary may, at the election of all the members of an unincorporated organization, exclude such organization from the application of all or part of this subchapter, if it is availed of—
(1) for investment purposes only and not for the active conduct of a business,
(2) for the joint production, extraction, or use of property, but not for the purpose of selling services or property produced or extracted, or
(3) by dealers in securities for a short period for the purpose of underwriting, selling, or distributing a particular issue of securities,
if the income of the members of the organization may be adequately determined without the computation of partnership taxable income.
(b) Partner
For purposes of this subtitle, the term partner means a member of a partnership.
(c) Partnership agreement
For purposes of this subchapter, a partnership agreement includes any modifications of the partnership agreement made prior to, or at, the time prescribed by law for the filing of the partnership return for the taxable year (not including extensions) which are agreed to by all the partners, or which are adopted in such other manner as may be provided by the partnership agreement.
(d) Liquidation of a partners interest
For purposes of this subchapter, the term liquidation of a partners interest means the termination of a partners entire interest in a partnership by means of a distribution, or a series of distributions, to the partner by the partnership.
(e) Distributions of partnership interests treated as exchanges
Except as otherwise provided in regulations, for purposes of—
(1) section 708 (relating to continuation of partnership),
(2) section 743 (relating to optional adjustment to basis of partnership property), and
(3) any other provision of this subchapter specified in regulations prescribed by the Secretary,
any distribution of an interest in a partnership (not otherwise treated as an exchange) shall be treated as an exchange.
(f) Qualified joint venture
(1) In general
In the case of a qualified joint venture conducted by a husband and wife who file a joint return for the taxable year, for purposes of this title—
(A) such joint venture shall not be treated as a partnership,
(B) all items of income, gain, loss, deduction, and credit shall be divided between the spouses in accordance with their respective interests in the venture, and
(C) each spouse shall take into account such spouses respective share of such items as if they were attributable to a trade or business conducted by such spouse as a sole proprietor.
(2) Qualified joint venture
For purposes of paragraph (1), the term qualified joint venture means any joint venture involving the conduct of a trade or business if—
(A) the only members of such joint venture are a husband and wife,
(B) both spouses materially participate (within the meaning of section 469(h) without regard to paragraph (5) thereof) in such trade or business, and
(C) both spouses elect the application of this subsection.
(g) Cross reference
For rules in the case of the sale, exchange, liquidation, or reduction of a partners interest, see sections 704(b) and 706(c)(2).
(Aug. 16, 1954, ch. 736, 68A Stat. 252; Pub. L. 94–455, title II, §213(c)(3)(B), title XIX, §1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1548, 1834; Pub. L. 96–222, title I, §102(a)(2)(C), Apr. 1, 1980, 94 Stat. 208; Pub. L. 98–369, div. A, title I, §75(b), July 18, 1984, 98 Stat. 594; Pub. L. 99–514, title XVIII, §1805(c)(2), Oct. 22, 1986, 100 Stat. 2810; Pub. L. 110–28, title VIII, §8215(a), May 25, 2007, 121 Stat. 193.)
Amendments
2007—Subsecs. (f), (g). Pub. L. 110–28 added subsec. (f) and redesignated former subsec. (f) as (g).
1986—Subsec. (e). Pub. L. 99–514 substituted Distributions of partnership interests for Distributions in heading, substituted Except as otherwise provided in regulations, for purposes of for For purposes of in introductory provision, and any distribution of an interest in a partnership for any distribution in closing provisions.
1984—Subsecs. (e), (f). Pub. L. 98–369 added subsec. (e) and redesignated former subsec. (e) as (f).
1980—Subsec. (a)(3). Pub. L. 96–222 added par. (3).
1976—Subsec. (a). Pub. L. 94–455, §1906(b)(13)(A), struck out or his delegate after Secretary.
Subsec. (e). Pub. L. 94–455, §213(c)(3)(B), added subsec. (e).
Effective Date of 2007 Amendment
Pub. L. 110–28, title VIII, §8215(c), May 25, 2007, 121 Stat. 194, provided that: The amendments made by this section [amending this section, section 1402 of this title, and section 411 of Title 42, The Public Health and Welfare] shall apply to taxable years beginning after December 31, 2006.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–369 applicable to distributions, sales, and exchanges made after Mar. 31, 1984, in taxable years ending after such date, see section 75(e) of Pub. L. 98–369, set out as an Effective Date note under section 386 of this title.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96–222 effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, Pub. L. 95–600, to which such amendment relates, see section 201 of Pub. L. 96–222, set out as a note under section 32 of this title.
Effective Date of 1976 Amendment
Amendment by section 213(c)(3)(B) of Pub. L. 94–455 applicable in the case of partnership taxable years beginning after Dec. 31, 1975, see section 213(f)(1) of Pub. L. 94–455, set out as a note under section 709 of this title.
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.
U.S. Encyclopedia of Law Coverage
Subpart B – Distributions By A Partnership in the Legal Encyclopedia: Income Taxes
In this entry about Subpart B – Distributions By A Partnership, find legal reference material, bibliographies and premiere content related to income taxes in the American Encyclopedia of Law, presenting a comprehensive view of the United States income taxes-specific issues, written by authorities in the field.
26-U.S.C.-721 in the Legal Encyclopedia: Tax Liability
In this entry about 26-U.S.C.-721, find legal reference material, bibliographies and premiere content related to tax liability in the American Encyclopedia of Law, presenting a comprehensive view of the United States tax liability-specific issues, written by authorities in the field.
Subpart A – Contributions To A Partnership in the Legal Encyclopedia: Taxation
In this entry about Subpart A – Contributions To A Partnership, find legal reference material, bibliographies and premiere content related to taxation in the American Encyclopedia of Law, presenting a comprehensive view of the United States taxation-specific issues, written by authorities in the field.
26-U.S.C.-723 in the Legal Encyclopedia: Liability
In this entry about 26-U.S.C.-723, find legal reference material, bibliographies and premiere content related to liability in the American Encyclopedia of Law, presenting a comprehensive view of the United States liability-specific issues, written by authorities in the field.
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