Sec. 3618. Partnership interests created by gift
127 words·~1 min read·
/bill/113/hr/1/ih/section-3618A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 761(b) is amended by adding at the end the following: In the case of a capital interest in a partnership in which capital is a material income-producing factor, whether a person is a partner with respect to such interest shall be determined without regard to whether such interest was derived by gift from any other person. . Section 704(e) is amended— by striking paragraph
(1)and by redesignating paragraphs
(2)and
(3)as paragraphs
(1)and (2), respectively, by striking this section in paragraph
(2)(as so redesignated) and inserting this subsection , and by striking in the heading and inserting Family partnerships . Partnership interests created by gift The amendments made by this section shall apply to partnership taxable years beginning after December 31, 2014.