Source: http://www4.law.cornell.edu/uscode/text/26/709?quicktabs_8=0
Timestamp: 2013-12-10 17:04:40
Document Index: 27695690

Matched Legal Cases: ['§ 709', '§ 709', '§ 709', '§ 213', '§ 902', '§ 403', '§ 2']

26 USC § 709 - Treatment of organization and syndication fees | Title 26 - Internal Revenue Code | U.S. Code | LII / Legal Information Institute
USC › Title 26 › Subtitle A › Chapter 1 › Subchapter K › Part I › § 709	prevnext
26 USC § 709 - Treatment of organization and syndication fees
General rule Except as provided in subsection (b), no deduction shall be allowed under this chapter to the partnership or to any partner for any amounts paid or incurred to organize a partnership or to promote the sale of (or to sell) an interest in such partnership.
Deduction of organization fees (1)
Allowance of deduction If a partnership elects the application of this subsection (in accordance with regulations prescribed by the Secretary) with respect to any organizational expenses—
the partnership shall be allowed a deduction for the taxable year in which the partnership begins business in an amount equal to the lesser of—
Dispositions before close of amortization period In any case in which a partnership is liquidated before the end of the period to which paragraph (1)(B) applies, any deferred expenses attributable to the partnership which were not allowed as a deduction by reason of this section may be deducted to the extent allowable under section 165.
Organizational expenses defined The organizational expenses to which paragraph (1) applies, are expenditures which—
(Added Pub. L. 94–455, title II, § 213(b)(1),Oct. 4, 1976, 90 Stat. 1547; amended Pub. L. 108–357, title VIII, § 902(c),Oct. 22, 2004, 118 Stat. 1651; Pub. L. 109–135, title IV, § 403(ll),Dec. 21, 2005, 119 Stat. 2632.)
2005—Subsec. (b)(1). Pub. L. 109–135substituted “partnership” for “taxpayer” in introductory provisions and before “shall be allowed” in subpar. (A).
2004—Subsec. (b). Pub. L. 108–357substituted “Deduction” for “Amortization” in heading, added par. (2), redesignated former par. (2) as (3), and amended heading 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.”
Section 213(f) ofPub. L. 94–455, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that:
“(3) Section 709
(b)of the code.—Section 709(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by the amendment made by subsection (b)(1) of this section) shall apply in the case of amounts paid or incurred in taxable years beginning after December 31, 1976.”