2023 CODE OF GEORGIA › Title 48 - REVENUE AND TAXATION (§§ 48-1-1 — 48-18-1) › Chapter 7 - INCOME TAXES (§§ 48-7-1 — 48-7-170) › Article 2 - IMPOSITION, RATE, AND COMPUTATION; EXEMPTIONS (§§ 48-7-20 — 48-7-42) › Section 48-7-23 - Taxation of partnerships; computation of net income; disallowance of charitable contributions; individual liability of partners; individual returns of distributive shares; taxable years; elections

(a)
The net income of a partnership shall be computed in the same manner and on the same basis as in the case of an individual except that the deduction of contributions for charitable purposes allowed by the Internal Revenue Code of 1986 shall not be allowed. Individuals carrying on business in partnership shall be liable for income tax only in their individual capacity; and each partner shall include in his or her individual return his or her distributive shares, whether distributed or not, of the net income of the partnership for the taxable year except as provided in subsection (c) of Code Section
48-7-24
. If the taxable year of a partner is different from that of the partnership, the amount included in a partner's individual return shall be based upon the income of the partnership for the taxable year of the partnership ending with or within the partner's taxable year.
(b)
(1)
As used in this subsection, the term "electing partnership" means, with respect to a taxable period, a partnership that has made the election pursuant to paragraph (2) of this subsection with respect to such taxable period.
(2)
A partnership may annually make an irrevocable election, on its timely filed return under Code Section
48-7-53
, to pay the tax levied by this chapter at the entity level for the taxable period covered by such return. Such election must be made on or before the due date for filing the applicable income tax return, including any extensions which have been granted.
(3)
Notwithstanding subsection (a) of this Code section, an electing partnership with respect to a taxable period shall pay an income tax on its ne t income at the same rate of the tax imposed on individuals under subsection (a.1) of Code Section
48-7-20
for the corresponding taxable year as computed pursuant to this Code Section , and allocated and apportioned pursuant to Code Section
48-7-31
, for such taxable period, and such partners shall not recognize their respective share of the portion of income on which tax was actually paid pursuant to this subsection.
(4)
No electing partnership nor any of its partners shall be entitled to any credit under Code Section
48-7-28
with respect to such tax so paid or any deduction for such income under subsection (d) of Code Section
48-7-27
; provided, however, that such electing partnership shall otherwise be eligible for credits provided by this chapter and shall be considered an "other entity" for purposes of Code Sections
48-7-29.16
,
48-7-29.20
, and
48-7-29.21
.
(5)
The election under this subsection shall have no impact on the determination of the basis of the partners of an electing partnership in their interests of such electing partnership, except that such partners' distributive share of the tax paid or accrued by such partnership pursuant to such election shall be taken into account in determining such basis.
(5.1)
The election under this subsection shall have no impact on the accounting or tax treatment of distributions for an electing pass-through entity.
(6)
In computing the net income that is subject to taxation, the electing partnership shall not be allowed any deduction for taxes that are based on or measured by gross or net income or any other variant thereof.
Amended by 2024 Ga. Laws 376,§ 2, eff. 7/1/2024, app. to all taxable years beginning on or after 1/1/2024.
Amended by 2023 Ga. Laws 238,§ 1, eff. 7/1/2023, app. to all taxable years beginning on or after 1/1/2023.
Amended by 2022 Ga. Laws 782,§ 48, eff. 5/2/2022.
Amended by 2021 Ga. Laws 164,§ 2, eff. 5/4/2021.