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Code · BILL · 113th Congress · H.R. 1 (Introduced in House) — To amend the Internal Revenue Code of 1986 to provide for comprehensive tax reform. · Sec. 3611

Sec. 3611. Repeal of rules relating to guaranteed payments and liquidating distributions

382 words·~2 min read·/bill/113/hr/1/ih/section-3611

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Section 707 is amended by striking subsection (c). Section 267(e) is amended by striking paragraph (4). Section 706(a) is amended by striking and 707(c) . Section 1402(a) is amended, in the matter following paragraph (17)— by striking (after such gross income has been reduced by the sum of all payments to which section 707(c) applies) in clauses
(iii)and (iv), and by striking (after such gross income has been so reduced) in clause (iv). Section 2701(c)(1)(B) is amended by inserting or at the end of clause (i), by striking , or at the end of clause
(ii)and inserting a period, and by striking clause (iii). Section 7519(d) is amended by striking paragraph (5). Except as otherwise provided in this paragraph, the amendments made by this subsection shall apply to partnership taxable years beginning after December 31, 2014. The amendment made by paragraph (2)(E) shall apply to transfers after December 31, 2014. Subpart B of part II of subchapter K of chapter 1 is amended by striking section 736 (and by striking the item relating to such section in the table of sections for such subpart). Section 761(d) is amended by adding at the end the following: For purposes of this subchapter, any retired partner or a deceased partner’s successor in interest shall be treated as a partner until the complete liquidation of such interest. Section 357(c)(3)(A) is amended by striking payment of which either— and all that follows through then, for purposes of and inserting payment of which would give rise to a deduction, then, for purposes of . Section 731(d) is amended— by striking section 736 (relating to payments to a retiring partner or a deceased partner’s successor in interest), , and by striking items), and and inserting items) and . Section 751(b)(2) is amended— by striking subparagraph (B), and by striking shall not apply to— and all that follows through a distribution of property and inserting the following: shall not apply to a distribution of property . Section 753 is amended by striking The amount includible and all that follows and inserting For treatment of income in respect of a decedent, see section 691. Section 691 is amended by striking subsection (e). The amendments made by this subsection shall apply to partners retiring or dying after December 31, 2014.
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