26 U.S.C. § 702
§ 702. Income and credits of partner
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Part of the code since 1954. Last changed May 28, 2003 by the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Every change, newest first (10)
- May 28, 2003Jobs and Growth Tax Relief Reconciliation Act of 2003
- October 22, 1986Tax Reform Act of 1986
- July 18, 1984Deficit Reduction Act of 1984
- January 12, 1983Public Law 97-448
- September 3, 1982Tax Equity and Fiscal Responsibility Act of 1982
- August 13, 1981Economic Recovery Tax Act of 1981
- April 2, 1980Public Law 96-223
- October 4, 1976Tax Reform Act of 1976
- February 26, 1964Public Law 88-272
- August 16, 1954Internal Revenue Code of 1954 (original text)
The law as written
Current through Public Law 119-102. Amendment notes omitted.
Structure
In determining his income tax, each partner shall take into account separately his distributive share of the partnership’s—
gains and losses from sales or exchanges of capital assets held for not more than 1 year,
gains and losses from sales or exchanges of capital assets held for more than 1 year,
gains and losses from sales or exchanges of property described in section 1231 (relating to certain property used in a trade or business and involuntary conversions),
charitable contributions (as defined in section 170(c)),
dividends with respect to which section 1(h)(11) or part VIII of subchapter B applies,
taxes, described in section 901, paid or accrued to foreign countries and to possessions of the United States,
other items of income, gain, loss, deduction, or credit, to the extent provided by regulations prescribed by the Secretary, and
taxable income or loss, exclusive of items requiring separate computation under other paragraphs of this subsection.
The character of any item of income, gain, loss, deduction, or credit included in a partner’s distributive share under paragraphs (1) through (7) of subsection (a) shall be determined as if such item were realized directly from the source from which realized by the partnership, or incurred in the same manner as incurred by the partnership.
In any case where it is necessary to determine the gross income of a partner for purposes of this title, such amount shall include his distributive share of the gross income of the partnership.
For rules relating to procedures for determining the tax treatment of partnership items see subchapter C of chapter 63 (section 6221 and following).