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Internal Revenue Code, § 702. Income And Credits Of Partner

I.R.C. § 702(a) General Rule
In determining his income tax, each partner shall take into account separately his distributive share of the partnership's—
I.R.C. § 702(a)(1)
gains and losses from sales or exchanges of capital assets held for not more than 1 year,
I.R.C. § 702(a)(2)
gains and losses from sales or exchanges of capital assets held for more than 1 year,
I.R.C. § 702(a)(3)
gains and losses from sales or exchanges of property described in section 1231 (relating to certain property used in a trade or business and involuntary conversions),
I.R.C. § 702(a)(4)
charitable contributions (as defined in section 170(c)),
I.R.C. § 702(a)(5)
dividends with respect to which section 1(h)(11) or part VIII of subchapter B applies,
I.R.C. § 702(a)(6)
taxes, described in section 901, paid or accrued to foreign countries and to possessions of the United States,
I.R.C. § 702(a)(7)
other items of income, gain, loss, deduction, or credit, to the extent provided by regulations prescribed by the Secretary, and
I.R.C. § 702(a)(8)
taxable income or loss, exclusive of items requiring separate computation under other paragraphs of this subsection.
I.R.C. § 702(b) Character Of Items Constituting Distributive Share
The character of any item of income, gain, loss, deduction, or credit included in a partner's distributive share under paragraphs (1) through (7) of subsection (a) shall be determined as if such item were realized directly from the source from which realized by the partnership, or incurred in the same manner as incurred by the partnership.
I.R.C. § 702(c) Gross Income Of A Partner
In any case where it is necessary to determine the gross income of a partner for purposes of this title, such amount shall include his distributive share of the gross income of the partnership.
I.R.C. § 702(d) Cross Reference
For rules relating to procedures for determining the tax treatment of partnership items see subchapter C of chapter 63 (section 6221 and following).
(Aug. 16, 1954, ch. 736, 68A Stat. 239; Feb. 26, 1964, Pub. L. 88-272, title II, 201(d)(7), 78 Stat. 32; Oct. 4, 1976, Pub. L. 94-455, title XIV, 1402(b)(1)(L), (2), title XIX, 1901(b)(1)(I)(i), (ii), 1906(b)(13)(A), 90 Stat. 1732, 1791, 1834; Apr. 2, 1980, Pub. L. 96-223, title IV, 404(b)(5), 94 Stat. 307; Aug. 13, 1981, Pub. L. 97-34, title III, 301(b)(5), (6)(C), 95 Stat. 270; Sept. 3, 1982, Pub. L. 97-248, title IV, 402(c)(1), 96 Stat. 667; Jan. 12, 1983, Pub. L. 97-448, title I, 103(a)(4), 96 Stat. 2375; July 18, 1984, Pub. L. 98-369, div. A, title X, 1001(b)(9), 98 Stat. 1011; Oct. 22, 1986, Pub. L. 99-514, title VI, 612(b)(5), 100 Stat. 2250; May 28, 2003, Pub. L. 108-27, title III, 302(e)(8), 117 Stat. 752.)
BACKGROUND NOTES
AMENDMENTS
2003--Subsec. (a)(5). Pub. L. 108-27 amended par. (5). Prior to amendment, par. (5) read as follows: “(5) dividends with respect to which there is a deduction under part VIII of subchapter B,”.
1986--Subsec. (a)(5). Pub. L. 99-514 amended par. (5) generally. Prior to amendment, par. (5) read as follows: “dividends or interest with respect to which there is an exclusion under section 116 or 128, or a deduction under part VIII of subchapter B,”.
1984--Subsec. (a)(1), (2). Pub. L. 98-369 substituted “6 months" for “1 year”.
1983--Subsec. (a)(5). Pub. L. 97-448 substituted “an exclusion under section 116 or 128,” for “provided an exclusion under section 116 or 128”.
1982--Subsec. (d). Pub. L. 97-248 added subsec. (d).
1981--Subsec. (a)(5). Pub. L. 97-34, 301(b)(6)(C), inserted reference to “interest” in heading and text which continued the amendment made by Pub. L. 96-223.
Pub. L. 97-34, 301(b)(5), inserted “or 128” after “section 116”.
1980--Subsec. (a)(5). Pub. L. 96-223 inserted “or interest" after “dividends”.
1976--Subsec. (a)(1), (2). Pub. L. 94-455, 1402(b)(2), provided that “9 months” would be changed to “1 year”.
Pub. L. 94-455, 1402(b)(1)(L), provided that “6 months” would be changed to “9 months" for taxable years beginning in 1977.
Subsec. (a)(7) to (9). Pub. L. 94-455, 1901(b)(1)(I)(i), 1906(b)(13)(A), redesignated pars. (8) and (9) as (7) and (8), respectively, and in par. (7), as so redesignated, struck out “or his delegate” after “Secretary”. Former par. (7), which related partially tax-exempt interest on obligations of the United States or its instrumentalities, was struck out.
Subsec. (b). Pub. L. 94-455, 1901(b)(1)(I)(ii), substituted “paragraphs (1) through (7)” for “paragraphs (1) through (8)”.
1964--Subsec. (a)(5). Pub. L. 88-272 struck out “a credit under section 34,” before “an exclusion”.
EFFECTIVE DATE OF 2003 AMENDMENT
Amendment by Sec. 302 of Pub. L. 108-27 effective for taxable years beginning after December 31, 2002. Sec. 302(f)(2) of Pub. L. 108-27, as amended by Pub. L. 108-311, Sec. 402(a)(6), provided that:
“(2) Pass-thru Entities.--In the case of a pass-thru entity described in subparagraph (A), (B), (C), (D), (E), or (F) of section 1(h)(10) of the Internal Revenue Code of 1986, as amended by this Act, the amendments made by this section shall apply to taxable years ending after December 31, 2002; except that dividends received by such an entity on or before such date shall not be treated as qualified dividend income (as defined in section 1(h)(11)(B) of such Code, as added by this Act).”
Section 303 (Sunset of Title) of Pub. L. 108-27, as amended by Pub. L. 109-222 and Pub. L. 111-312, Sec. 102, and struck by Pub. L. 112-240, Sec. 102(a) (effective for taxable years beginning after Dec. 31, 2012), provided that:
“All provisions of, and amendments made by, this title shall not apply to taxable years beginning after December 31, 2012, and the Internal Revenue Code of 1986 shall be applied and administered to such years as if such provisions and amendments had never been enacted.”
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to taxable years beginning after Dec. 31, 1986, see section 612(c) of Pub. L. 99-514, set out as a note under section 301 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of Pub. L. 98-369, set out as a note under section 166 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 97-448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 109 of Pub. L. 97-448, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97-248 applicable to partnership taxable years beginning after Sept. 3, 1982, see section 407(a) of Pub. L. 97-248, set out as an Effective Date note under section 6221 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 301(b)(5) of Pub. L. 97-34 applicable to taxable years ending after Sept. 30, 1981, and amendment by section 301(b)(6)(C) of Pub. L. 97-34, applicable to taxable years beginning after Dec. 31, 1981, see section 301(d) of Pub. L. 97-34, set out as an Effective Date note under section 128 of this title.
EFFECTIVE AND TERMINATION DATES OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 applicable with respect to taxable years beginning after Dec. 31, 1980, and before Jan. 1, 1982, see section 404(c) of Pub. L. 96-223, set out as a note under section 265 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1402(b)(1) of Pub. L. 94-455 provided that the amendment made by section 1402(b)(1)(L) of Pub. L. 94-455 is effective with respect to taxable years beginning in 1977.
Section 1402(b)(2) of Pub. L. 94-455 provided that the amendment made by section 1402(b)(2) of Pub. L. 94-455 is effective with respect to taxable years beginning after Dec. 31, 1977.
Amendment by section 1901(b)(1)(I)(i), (ii) 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.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-272 applicable with respect to dividends received after Dec. 31, 1964, in taxable years ending after such date, see section 201(e) of Pub. L. 88-272, set out as a note under section 22 of this title.