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Sec. 708. Continuation Of Partnership

I.R.C. § 708(a) General Rule
For purposes of this subchapter, an existing partnership shall be considered as continuing if it is not terminated.
I.R.C. § 708(b) Termination
I.R.C. § 708(b)(1) General Rule
For purposes of subsection (a), a partnership shall be considered as terminated only if no part of any business, financial operation, or venture of the partnership continues to be carried on by any of its partners in a partnership.
I.R.C. § 708(b)(2) Special Rules
I.R.C. § 708(b)(2)(A) Merger Or Consolidation
In the case of the merger or consolidation of two or more partnerships, the resulting partnership shall, for purposes of this section, be considered the continuation of any merging or consolidating partnership whose members own an interest of more than 50 percent in the capital and profits of the resulting partnership.
I.R.C. § 708(b)(2)(B) Division Of A Partnership
In the case of a division of a partnership into two or more partnerships, the resulting partnerships (other than any resulting partnership the members of which had an interest of 50 percent or less in the capital and profits of the prior partnership) shall, for purposes of this section, be considered a continuation of the prior partnership.
(Aug. 16, 1954, ch. 736, 68A Stat. 244; Pub. L. 115-97, title I, Sec. 13504(a), Dec. 22, 2017, 131 Stat. 2054.)
BACKGROUND NOTES
AMENDMENTS
2017 — Subsec. (b)(1). Pub. L. 115-97, Sec. 13504(a), amended subsec. (b)(1) by striking “, or” at the end of subpar. (A) and all that follows and inserting a period, and by striking “only if—“ and all that follows through ‘‘no part of any business” and inserting “only if no part of any business”.
EFFECTIVE DATE OF 2017 AMENDMENT
Amendment by Pub. L. 115-97, Sec. 13504(a), effective for partnership taxable years beginning after December 31, 2017.