26Title 26The US tax code, read & explained

26 U.S.C. § 703

§ 703. Partnership computations

226 words · amended 10 times · cited by 5 other sections

Compare on Cornell LII Official XML (House)

No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Part of the code since 1954. Last changed August 10, 1993 by the Omnibus Budget Reconciliation Act of 1993.

Every change, newest first (11)
  1. August 10, 1993Omnibus Budget Reconciliation Act of 1993
  2. November 10, 1988Technical and Miscellaneous Revenue Act of 1988
  3. October 22, 1986Tax Reform Act of 1986
  4. December 24, 1980Public Law 96-589
  5. May 23, 1977Public Law 95-30
  6. October 4, 1976Tax Reform Act of 1976
  7. March 29, 1975Public Law 94-12
  8. December 10, 1971Public Law 92-178
  9. December 30, 1969Tax Reform Act of 1969
  10. September 12, 1966Public Law 89-570
  11. August 16, 1954Internal Revenue Code of 1954 (original text)

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) Income and deductions
  2. (b) Elections of the partnership
(a) Income and deductions

The taxable income of a partnership shall be computed in the same manner as in the case of an individual except that—

(1)

the items described in section 702(a) shall be separately stated, and

(2)

the following deductions shall not be allowed to the partnership:

(A)

the deductions for personal exemptions provided in section 151,

(B)

the deduction for taxes provided in section 164(a) with respect to taxes, described in section 901, paid or accrued to foreign countries and to possessions of the United States,

(C)

the deduction for charitable contributions provided in section 170,

(D)

the net operating loss deduction provided in section 172,

(E)

the additional itemized deductions for individuals provided in part VII of subchapter B (sec. 211 and following), and

(F)

the deduction for depletion under section 611 with respect to oil and gas wells.

(b) Elections of the partnership

Any election affecting the computation of taxable income derived from a partnership shall be made by the partnership, except that any election under—

(1)

subsection (b)(5) or (c)(3) of section 108 (relating to income from discharge of indebtedness),

(2)

section 617 (relating to deduction and recapture of certain mining exploration expenditures), or

(3)

section 901 (relating to taxes of foreign countries and possessions of the United States),

shall be made by each partner separately.