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.
