26 U.S.C. § 703 — Partnership computations

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 222 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section addresses Partnership computations. It sets out the duties, permissions, requirements, limits, or other rules stated in the section.

(a) Income and deductions The taxable income of a partnership must be computed in it manner as in the case of an individual except that— (1) the items described in section 702(a) must be separately stated, and (2) the following deductions must 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) about 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 about oil and gas wells. (b) Elections of the partnership Any election affecting the computation of taxable income derived from a partnership must 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), must be made by each partner separately.

the actual law source: uscode.house.gov ↗public domain

(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.

Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 240; Pub. L. 89–570, § 2(b), Sept. 12, 1966, 80 Stat. 764; Pub. L. 91–172, title V, § 504(c)(3), Dec. 30, 1969, 83 Stat. 633; Pub. L. 92–178, title III, § 304(c), Dec. 10, 1971, 85 Stat. 523; Pub. L. 94–12, title V, § 501(b)(3), Mar. 29, 1975, 89 Stat. 53; Pub. L. 94–455, title XIX, § 1901(b)(21)(F), title XXI, § 2115(c)(2), Oct. 4, 1976, 90 Stat. 1798, 1909; Pub. L. 95–30, title I, § 101(d)(10), May 23, 1977, 91 Stat. 134; Pub. L. 96–589, § 2(e)(1), Dec. 24, 1980, 94 Stat. 3396; Pub. L. 99–514, title V, § 511(d)(2)(B), title VII, § 701(e)(4)(E), Oct. 22, 1986, 100 Stat. 2249, 2343; Pub. L. 100–647, title I, § 1008(i), Nov. 10, 1988, 102 Stat. 3445; Pub. L. 103–66, title XIII, § 13150(c)(9), Aug. 10, 1993, 107 Stat. 448.)

history & why it existsrecord from the source credit

1954Enacted · Act of Aug. 16, 1954, ch. 736
1966Amended · Pub. L. 89-570 · 80 Stat. 764
1969Amended · Pub. L. 91-172 · 83 Stat. 633
1971Amended · Pub. L. 92-178 · 85 Stat. 523
1975Amended · Pub. L. 94-12 · 89 Stat. 53
1976Amended · Pub. L. 94-455 · 90 Stat. 1798, 1909
1977Amended · Pub. L. 95-30 · 91 Stat. 134
1980Amended · Pub. L. 96-589 · 94 Stat. 3396
1986Amended · Pub. L. 99-514 · 100 Stat. 2249, 2343
1988Amended · Pub. L. 100-647 · 102 Stat. 3445
1993Amended · Pub. L. 103-66 · 107 Stat. 448

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

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