Internal Revenue Code:Sec. 761. Terms defined

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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 III - DEFINITIONS
       

Statute

    Sec. 761. Terms defined
 
    (a) Partnership
      For purposes of this subtitle, the term ''partnership'' includes
    a syndicate, group, pool, joint venture, or other unincorporated
    organization through or by means of which any business, financial
    operation, or venture is carried on, and which is not, within the
    meaning of this title, a corporation or a trust or estate.  Under
    regulations the Secretary may, at the election of all the members
    of an unincorporated organization, exclude such organization from
    the application of all or part of this subchapter, if it is availed
    of -
        (1) for investment purposes only and not for the active conduct
      of a business,
        (2) for the joint production, extraction, or use of property,
      but not for the purpose of selling services or property produced
      or extracted, or
        (3) by dealers in securities for a short period for the purpose
      of underwriting, selling, or distributing a particular issue of
      securities,
    if the income of the members of the organization may be adequately
    determined without the computation of partnership taxable income.
    (b) Partner
      For purposes of this subtitle, the term ''partner'' means a
    member of a partnership.
    (c) Partnership agreement
      For purposes of this subchapter, a partnership agreement includes
    any modifications of the partnership agreement made prior to, or
    at, the time prescribed by law for the filing of the partnership
    return for the taxable year (not including extensions) which are
    agreed to by all the partners, or which are adopted in such other
    manner as may be provided by the partnership agreement.
    (d) Liquidation of a partner's interest
      For purposes of this subchapter, the term ''liquidation of a
    partner's interest'' means the termination of a partner's entire
    interest in a partnership by means of a distribution, or a series
    of distributions, to the partner by the partnership.
    (e) Distributions of partnership interests treated as exchanges
      Except as otherwise provided in regulations, for purposes of -
        (1) section 708 (relating to continuation of partnership),
        (2) section 743 (relating to optional adjustment to basis of
      partnership property), and
        (3) any other provision of this subchapter specified in
      regulations prescribed by the Secretary,
    any distribution of an interest in a partnership (not otherwise
    treated as an exchange) shall be treated as an exchange.
    (f) Cross reference
          For rules in the case of the sale, exchange, liquidation, or
        reduction of a partner's interest, see sections 704(b) and
        706(c)(2).
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 252; Pub. L. 94-455, title II,
    Sec. 213(c)(3)(B), title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
    Stat. 1548, 1834; Pub. L. 96-222, title I, Sec. 102(a)(2)(C), Apr.
    1, 1980, 94 Stat. 208; Pub. L. 98-369, div.  A, title I, Sec.
    75(b), July 18, 1984, 98 Stat. 594; Pub. L. 99-514, title XVIII,
    Sec. 1805(c)(2), Oct. 22, 1986, 100 Stat. 2810.)
 

Miscellaneous

                                 AMENDMENTS
      1986 - Subsec. (e). Pub. L. 99-514 substituted ''Distributions of
    partnership interests'' for ''Distributions'' in heading,
    substituted ''Except as otherwise provided in regulations, for
    purposes of'' for ''For purposes of'' in introductory provision,
    and ''any distribution of an interest in a partnership'' for ''any
    distribution'' in closing provisions.
      1984 - Subsecs. (e), (f). Pub. L. 98-369 added subsec. (e) and
    redesignated former subsec. (e) as (f).
      1980 - Subsec. (a)(3). Pub. L. 96-222 added par. (3).
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
    out ''or his delegate'' after ''Secretary''.
      Subsec. (e). Pub. L. 94-455, Sec. 213(c)(3)(B), added subsec.
    (e).
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Amendment by Pub. L. 99-514 effective, except as otherwise
    provided, as if included in the provisions of the Tax Reform Act of
    1984, Pub. L. 98-369, div.  A, to which such amendment relates, see
    section 1881 of Pub. L. 99-514, set out as a note under section 48
    of this title.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Amendment by Pub. L. 98-369 applicable to distributions, sales,
    and exchanges made after Mar. 31, 1984, in taxable years ending
    after such date, see section 75(e) of Pub. L. 98-369, set out as an
    Effective Date note under section 386 of this title.
                      EFFECTIVE DATE OF 1980 AMENDMENT
      Amendment by Pub. L. 96-222 effective, except as otherwise
    provided, as if it had been included in the provisions of the
    Revenue Act of 1978, Pub. L. 95-600, to which such amendment
    relates, see section 201 of Pub. L. 96-222, set out as a note under
    section 32 of this title.
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Amendment by section 213(c)(3)(B) of Pub. L. 94-455 applicable in
    the case of partnership taxable years beginning after Dec. 31,
    1975, see section 213(f)(1) of Pub. L. 94-455, set out as a note
    under section 709 of this title.
             PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title
    XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to
    any plan, such plan amendment shall not be required to be made
    before the first plan year beginning on or after Jan. 1, 1989, see
    section 1140 of Pub. L. 99-514, as amended, set out as a note under
    section 401 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1031 of this title.