Source: http://www.law.cornell.edu/uscode/text/26/736?quicktabs_8=0
Timestamp: 2014-07-26 16:00:51
Document Index: 653061473

Matched Legal Cases: ['§ 736', '§ 1906', '§ 701', '§ 13262', '§ 13262', '§ 13262', '§ 13262']

26 U.S. Code § 736 - Payments to a retiring partner or a deceased partner’s successor in interest | LII / Legal Information Institute
Payments considered as distributive share or guaranteed payment Payments made in liquidation of the interest of a retiring partner or a deceased partner shall, except as provided in subsection (b), be considered—
as a guaranteed payment described in section 707
(c) if the amount thereof is determined without regard to the income of the partnership.
Payments for interest in partnership (1)
General rule Payments made in liquidation of the interest of a retiring partner or a deceased partner shall, to the extent such payments (other than payments described in paragraph (2)) are determined, under regulations prescribed by the Secretary, to be made in exchange for the interest of such partner in partnership property, be considered as a distribution by the partnership and not as a distributive share or guaranteed payment under subsection (a).
Special rules For purposes of this subsection, payments in exchange for an interest in partnership property shall not include amounts paid for—
unrealized receivables of the partnership (as defined in section 751
Limitation on application of paragraph (2) Paragraph (2) shall apply only if—
(Aug. 16, 1954, ch. 736, 68A Stat. 248; Pub. L. 94–455, title XIX, § 1906(b)(13)(A),Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–600, title VII, § 701(u)(13)(B),Nov. 6, 1978, 92 Stat. 2918; Pub. L. 103–66, title XIII, § 13262(a), (b)(2)(B),Aug. 10, 1993, 107 Stat. 541.)
1993—Subsec. (b)(3). Pub. L. 103–66, § 13262(a), added par. (3).
Subsec. (c). Pub. L. 103–66, § 13262(b)(2)(B), struck out heading and text of subsec. (c). Text read as follows: “For limitation on the tax attributable to certain gain connected with section 1248 stock, see section 751
Pub. L. 103–66, title XIII, § 13262(c),Aug. 10, 1993, 107 Stat. 541, provided that:
“(1) In general.—The amendments made by this section [amending this section and section 751 of this title] shall apply in the case of partners retiring or dying on or after January 5, 1993.
Amendment by Pub. L. 95–600applicable to transfers beginning after Oct. 9, 1975, and to sales, exchanges, and distributions taking place after Oct. 9, 1975, see section 701(u)(13)(C) ofPub. L. 95–600, set out as a note under section 751 of this title.