Internal Revenue Code:Sec. 703. Partnership computations

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter K - Partners and Partnerships
         PART I - DETERMINATION OF TAX LIABILITY
       

Statute

    Sec. 703. Partnership computations
 
    (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.
 

Sources

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

Miscellaneous

                                 AMENDMENTS
      1993 - Subsec. (b)(1). Pub. L. 103-66 substituted ''subsection
    (b)(5) or (c)(3)'' for ''subsection (b)(5)''.
      1988 - Subsec. (b)(1). Pub. L. 100-647 substituted ''subsection
    (b)(5)'' for ''subsection (b)(5) or (d)(4)''.
      1986 - Subsec. (b). Pub. L. 99-514 struck out former pars. (1)
    and (3) which related to elections under sections 57(c) and 163(d),
    respectively, and redesignated former pars. (2), (4), and (5), as
    pars. (1), (2), and (3), respectively.
      1980 - Subsec. (b). Pub. L. 96-589 inserted reference to section
    108(b)(5) and (d)(4).
      1977 - Subsec. (a)(2). Pub. L. 95-30 struck out subpar. (A) which
    made reference to the standard deduction provided in section 141,
    and redesignated subpars. (B) to (G) as (A) to (F), respectively.
      1976 - Subsec. (a)(2)(G). Pub. L. 94-455, Sec. 2115(c)(2),
    substituted ''wells'' for ''production subject to the provisions of
    section 613A(c)''.
      Subsec. (b). Pub. L. 94-455, Sec. 1901(b)(21)(F), struck out
    ''under section 615 (relating to pre-1970 exploration
    expenditures),'' after ''of the United States, and any election''.
      1975 - Subsec. (a)(2)(G). Pub. L. 94-12 added subpar. (G).
      1971 - Subsec. (b). Pub. L. 92-178 substituted '','' for ''or''
    after ''(relating to pre-1970 exploration expenditures)'' and
    inserted ''under section 57(c) (relating to definition of net
    lease), or under section 163(d) (relating to limitation on interest
    on investment indebtedness)'' after ''(relating to deduction and
    recapture of certain mining exploration expenditures)''.
      1969 - Subsec. (b). Pub. L. 91-172 substituted ''(relating to
    pre-1970 exploration expenditures) or under section 617 (relating
    to deduction and recapture of certain mining exploration
    expenditures)'' for ''(relating to exploration expenditures) or
    under section 617 (relating to additional exploration expenditures
    in the case of domestic mining)''.
      1966 - Subsec. (b). Pub. L. 89-570 provided for election under
    section 615 (relating to exploration expenditures) or under section
    617 (relating to additional exploration expenditures in the case of
    domestic mining).
                      EFFECTIVE DATE OF 1993 AMENDMENT
      Amendment by Pub. L. 103-66 applicable to discharges after Dec.
    31, 1992, in taxable years ending after such date, see section
    13150(d) of Pub. L. 103-66, set out as a note under section 108 of
    this title.
                      EFFECTIVE DATE OF 1988 AMENDMENT
      Amendment by Pub. L. 100-647 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    1019(a) of Pub. L. 100-647, set out as a note under section 1 of
    this title.
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Amendment by section 511(d)(2)(B) of Pub. L. 99-514 applicable to
    taxable years beginning after Dec. 31, 1986, see section 511(e) of
    Pub. L. 99-514, set out as a note under section 163 of this title.
      Amendment by section 701(e)(4)(E) of Pub. L. 99-514 applicable to
    taxable years beginning after Dec. 31, 1986, with certain
    exceptions and qualifications, see section 701(f) of Pub. L.
    99-514, set out as an Effective Date note under section 55 of this
    title.
                      EFFECTIVE DATE OF 1980 AMENDMENT
      Amendment by Pub. L. 96-589 applicable to transactions which
    occur after Dec. 31, 1980, other than transactions which occur in a
    proceeding in a bankruptcy case or similar judicial proceeding or
    in a proceeding under Title 11 commencing on or after Dec. 31,
    1980, with an exception permitting the debtor to make the amendment
    applicable to transactions occurring after Sept. 30, 1979; in a
    specified manner, see section 7(a)(1), (f) of Pub. L. 96-589, set
    out as a note under section 108 of this title.
                      EFFECTIVE DATE OF 1977 AMENDMENT
      Amendment by Pub. L. 95-30 applicable to taxable years beginning
    after Dec. 31, 1976, see section 106(a) of Pub. L. 95-30, set out
    as a note under section 1 of this title.
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Amendment by section 1901(b)(21)(F) of Pub. L. 94-455 effective
    for taxable years beginning after Dec. 31, 1976, see section
    1901(d) of Pub. L. 94-455, set out as a note under section 2 of
    this title.
      Amendment by section 2115(c)(2) of Pub. L. 94-455 effective on
    Jan. 1, 1975 and applicable to taxable years ending after Dec. 31,
    1974, see section 2115(f) of Pub. L. 94-455, set out as a note
    under section 613A of this title.
                      EFFECTIVE DATE OF 1975 AMENDMENT
      Amendment by Pub. L. 94-12 effective Jan. 1, 1975, to apply to
    taxable years ending after Dec. 31, 1974, see section 501(c) of
    Pub. L. 94-12, set out as an Effective Date note under section 613A
    of this title.
                      EFFECTIVE DATE OF 1969 AMENDMENT
      Amendment by Pub. L. 91-172 applicable with respect to
    exploration expenditures paid or incurred after Dec. 31, 1969, see
    section 504(d)(1) of Pub. L. 91-172, set out as an Effective Date
    note under section 243 of this title.
                      EFFECTIVE DATE OF 1966 AMENDMENT
      Amendment by Pub. L. 89-570 applicable to taxable years ending
    after Sept. 12, 1966, but only in respect of expenditures paid or
    incurred after such date, see section 3 of Pub. L. 89-570, set out
    as an Effective Date note under section 617 of this title.
     APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99-514 IN RELATION
                   TO TREATY OBLIGATIONS OF UNITED STATES
      For applicability of amendment by section 701(e)(4)(E) of Pub. L.
    99-514 notwithstanding any treaty obligation of the United States
    in effect on Oct. 22, 1986, with provision that for such purposes
    any amendment by title I of Pub. L. 100-647 be treated as if it had
    been included in the provision of Pub. L. 99-514 to which such
    amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100-647,
    set out as a note under section 861 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 705, 860C, 901, 1363,
    1446 of this title.