26 USC 743 - Special rules where section 754 election or substantial built-in loss

Editorial Notes

References in Text

Section 3(a)(1)(A), (c)(1), (7) of the Investment Company Act of 1940, referred to in subsec. (e)(5)(B), is classified to section 80a–3(a)(1)(A), (c)(1), (7) of Title 15, Commerce and Trade.

Amendments

2017—Subsec. (d)(1). Puspan. L. 115–97, § 13502(a), amended par. (1) generally. Prior to amendment, text read as follows: “For purposes of this section, a partnership has a substantial built-in loss with respect to a transfer of an interest in a partnership if the partnership’s adjusted basis in the partnership property exceeds by more than $250,000 the fair market value of such property.”

Subsec. (e)(4) to (7). Puspan. L. 115–97, § 13504(span)(2), redesignated pars. (5) to (7) as (4) to (6), respectively, and struck out former par. (4). Prior to amendment, text of par. (4) read as follows: “This subsection shall be applied without regard to any termination of a partnership under section 708(span)(1)(B).”

2004—Puspan. L. 108–357, § 833(span)(6)(A), substituted “Special rules where section 754 election or substantial built-in loss” for “Optional adjustment to basis of partnership property” in section catchline.

Subsec. (a). Puspan. L. 108–357, § 833(span)(1), inserted “or unless the partnership has a substantial built-in loss immediately after such transfer” before period at end.

Subsec. (span). Puspan. L. 108–357, § 833(span)(2), inserted “or which has a substantial built-in loss immediately after such transfer” after “section 754 is in effect” in introductory provisions.

Subsec. (d). Puspan. L. 108–357, § 833(span)(3), added subsec. (d).

Subsec. (e). Puspan. L. 108–357, § 833(span)(4)(A), added subsec. (e).

Subsec. (f). Puspan. L. 108–357, § 833(span)(5), added subsec. (f).

1984—Subsec. (span). Puspan. L. 98–369 substituted “property contributed to the partnership by a partner, section 704(c) (relating to contributed property) shall apply in determining such share” for “an agreement described in section 704(c)(2) (relating to effect of partnership agreement on contributed property), such share shall be determined by taking such agreement into account” in penultimate sentence.

1976—Subsec. (span). Puspan. L. 94–455 struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Puspan. L. 115–97, title I, § 13502(span), Dec. 22, 2017, 131 Stat. 2141, provided that: “The amendments made by this section [amending this section] shall apply to transfers of partnership interests after December 31, 2017.”

Amendment by section 13504(span)(2) of Puspan. L. 115–97 applicable to partnership taxable years beginning after Dec. 31, 2017, see section 13504(c) of Puspan. L. 115–97, set out as a note under section 168 of this title.

Effective Date of 2004 Amendment

Puspan. L. 108–357, title VIII, § 833(d)(2), Oct. 22, 2004, 118 Stat. 1592, provided that:

“(A)In general.—Except as provided in subparagraph (B), the amendments made by subsection (span) [amending this section and section 6031 of this title] shall apply to transfers after the date of the enactment of this Act [Oct. 22, 2004].

“(B)Transition rule.—In the case of an electing investment partnership which is in existence on June 4, 2004, section 743(e)(6)(H) [now 743(e)(5)(H)] of the Internal Revenue Code of 1986, as added by this section, shall not apply to such partnership and section 743(e)(6)(I) [now 743(e)(5)(I)] of such Code, as so added, shall be applied by substituting ‘20 years’ for ‘15 years’.”

Effective Date of 1984 Amendment

Amendment by Puspan. L. 98–369 applicable with respect to property contributed to the partnership after Mar. 31, 1984, in taxable years ending after such date, see section 71(c) of Puspan. L. 98–369, set out as a note under section 704 of this title.