Sec. 1102. Partnership interests created by gift
137 words·~1 min read·
/bill/114/hr/1314/eah/section-1102·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 761(b) of the Internal Revenue Code of 1986 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) of such Code 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, 2015.