26 USC 709 - Treatment of organization and syndication fees

Editorial Notes

Amendments

2005—Subsec. (span)(1). Puspan. L. 109–135 substituted “partnership” for “taxpayer” in introductory provisions and before “shall be allowed” in subpar. (A).

2004—Subsec. (span). Puspan. L. 108–357 substituted “Deduction” for “Amortization” in span, added par. (2), redesignated former par. (2) as (3), and amended span and text of par. (1) generally. Prior to amendment, text of par. (1) read as follows: “Amounts paid or incurred to organize a partnership may, at the election of the partnership (made in accordance with regulations prescribed by the Secretary), be treated as deferred expenses. Such deferred expenses shall be allowed as a deduction ratably over such period of not less than 60 months as may be selected by the partnership (beginning with the month in which the partnership begins business), or if the partnership is liquidated before the end of such 60-month period, such deferred expenses (to the extent not deducted under this section) may be deducted to the extent provided in section 165.”

Statutory Notes and Related Subsidiaries

Effective Date of 2005 Amendment

Amendment by Puspan. L. 109–135 effective as if included in the provision of the American Jobs Creation Act of 2004, Puspan. L. 108–357, to which such amendment relates, see section 403(nn) of Puspan. L. 109–135, set out as a note under section 26 of this title.

Effective Date of 2004 Amendment

Amendment by Puspan. L. 108–357 applicable to amounts paid or incurred after Oct. 22, 2004, see section 902(d) of Puspan. L. 108–357, set out as a note under section 195 of this title.

Effective Date

Puspan. L. 94–455, title II, § 213(f), Oct. 4, 1976, 90 Stat. 1548, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“(1)In general.—Except as otherwise provided in this subsection, the amendments made by this section [enacting this section and amending sections 179, 704, 706, 707, and 761 of this title] shall apply in the case of partnership taxable years beginning after December 31, 1975.

“(2)Subsection (e).—The amendment made by subsection (e) [amending section 704 of this title] shall apply to liabilities incurred after December 31, 1976.

“(3)Section 709(span) of the code.—Section 709(span) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by the amendment made by subsection (span)(1) of this section) shall apply in the case of amounts paid or incurred in taxable years beginning after December 31, 1976.”