Source: https://irc.bloombergtax.com/public/uscode/doc/irc/section_707
Timestamp: 2019-06-17 08:35:38
Document Index: 632134

Matched Legal Cases: ['§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707', '§ 707']

Internal Revenue Code, § 707. Transactions Between Partner And Partnership
I.R.C. § 707(a) Partner Not Acting In Capacity As Partner
I.R.C. § 707(a)(1) In General —
I.R.C. § 707(a)(2) Treatment Of Payments To Partners For Property Or Services —
I.R.C. § 707(a)(2)(A) Treatment Of Certain Services And Transfers Of Property —
I.R.C. § 707(a)(2)(A)(i) —
a partner performs services for a partnership or transfers property to a partnership,
I.R.C. § 707(a)(2)(A)(ii) —
there is a related direct or indirect allocation and distribution to such partner, and
I.R.C. § 707(a)(2)(A)(iii) —
the performance of such services (or such transfer) and the allocation and distribution, when viewed together, are properly characterized as a transaction occurring between the partnership and a partner acting other than in his capacity as a member of the partnership,
I.R.C. § 707(a)(2)(B) Treatment Of Certain Property Transfers —
I.R.C. § 707(a)(2)(B)(i) —
there is a direct or indirect transfer of money or other property by a partner to a partnership,
I.R.C. § 707(a)(2)(B)(ii) —
there is a related direct or indirect transfer of money or other property by the partnership to such partner (or another partner), and
I.R.C. § 707(a)(2)(B)(iii) —
the transfers described in clauses (i) and (ii), when viewed together, are properly characterized as a sale or exchange of property,
I.R.C. § 707(b) Certain Sales Or Exchanges Of Property With Respect To Controlled Partnerships
I.R.C. § 707(b)(1) Losses Disallowed —
I.R.C. § 707(b)(1)(A) —
a partnership and a person owning, directly or indirectly, more than 50 percent of the capital interest, or the profits interest, in such partnership, or
I.R.C. § 707(b)(1)(B) —
I.R.C. § 707(b)(2) Gains Treated As Ordinary Income —
I.R.C. § 707(b)(2)(A) —
between a partnership and a person owning, directly or indirectly, more than 50 percent of the capital interest, or profits interest, in such partnership, or
I.R.C. § 707(b)(2)(B) —
between two partnerships in which the same persons own, directly or indirectly, more than 50 percent of the capital interests or profits interests,
I.R.C. § 707(b)(3) Ownership Of A Capital Or Profits Interest —
I.R.C. § 707(c) Guaranteed Payments —
(Aug. 16, 1954, ch. 736, 68A Stat. 243 ; Oct. 4, 1976, Pub. L. 94-455, title II, 213(b)(3), title XIX, 1901(b)(3)(C), 90 Stat. 1547, 1792; July 18, 1984, Pub. L. 98-369, div. A, title I, 73(a), 98 Stat. 591; Oct. 22, 1986, Pub. L. 99-514, title VI, 642(a)(2), title XVIII, 1805(b), 1812(c)(3)(A), (B), 100 Stat. 2284, 2810, 2834.)
1986--Subsec. (a)(2)(B)(iii). Pub. L. 99-514, 1805(b), substituted “sale or exchange of property" for “sale of property”.
Subsec. (b)(1). Pub. L. 99-514, 1812(c)(3)(B), inserted at end “For purposes of section 267(a)(2), partnerships described in subparagraph (B) of this paragraph shall be treated as persons specified in section 267(b).”
Subsec. (b)(1)(A). Pub. L. 99-514, 1812(c)(3)(A), substituted “a person” for “a partner”.
Subsec. (b)(2)(A). Pub. L. 99-514, 1812(c)(3)(A), substituted “a person” for “a partner”.
Pub. L. 99-514, 642(a)(2), substituted “50 percent" for “80 percent”.
Subsec. (b)(2)(B). Pub. L. 99-514, 642(a)(2), substituted “50 percent” for “80 percent”.
1984--Subsec. (a). Pub. L. 98-369 designated existing provisions as par. (1) and added par. (2).
1976--Subsec. (b)(2). Pub. L. 94-455, 1901(b)(3)(C), substituted “as ordinary income” for “as gain from the sale or exchange of property other than a capital asset”.
Subsec. (c). Pub. L. 94-455, 213(b)(3), substituted “and, subject to section 263, for purposes of section 162(a)” for “and section 162(a)”.
Amendment by section 642(a)(2) of Pub. L. 99-514 applicable to sales after Oct. 22, 1986, in taxable years ending after such date, but not applicable to sales made after Aug. 14, 1986, which are made pursuant to a binding contract in effect on Aug. 14, 1986, and at all times thereafter, see section 642(c) of Pub. L. 99-514, set out as a note under section 1239 of this title.
Amendment by sections 1805(b) and 1812(c)(3)(B) of 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.
Section 1812(c)(3)(A) of Pub. L. 99-514 provided that the amendment made by section 1812(c)(3)(A) of Pub. L. 99-514 is effective with respect to sales or exchanges after Sept. 27, 1985.
Section 73(b) of Pub. L. 98-369, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) In general.--The amendment made by subsection (a) [amending this section] shall apply--
“(A) in the case of arrangements described in section 707(a)(2)(A) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954 ] (as amended by subsection (a)), to services performed or property transferred after February 29, 1984, and
“(B) in the case of transfers described in section 707(a)(2)(B) of such Code (as so amended), to property transferred after March 31, 1984.
“(2) Binding contract exception.--The amendment made by subsection (a) shall not apply to a transfer of property described in section 707(a)(2)(B)(i) if such transfer is pursuant to a binding contract in effect on March 31, 1984, and at all times thereafter before the transfer.
“(3) Exception for certain transfers.--The amendment made by subsection (a) shall not apply to a transfer of property described in section 707(a)(2)(B)(i) that is made before December 31, 1984, if--
“(A) such transfer was proposed in a written private offering memorandum circulated before February 28, 1984;
“(B) the out-of-pocket costs incurred with respect to such offering exceeded $250,000 as of February 28, 1984;
“(C) the encumbrances placed on such property in anticipation of such transfer all constitute obligations for which neither the partnership nor any partner is liable; and
“(D) the transferor of such property is the sole general partner of the partnership.”
Amendment by section 213(b)(3) 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 an Effective Date note under section 709 of this title.
Amendment by section 1901(b)(3)(C) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as a note under section 2 of this title.