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Code · U.S. Code · Title 26 - INTERNAL REVENUE CODE · CHAPTER 1— NORMAL TAXES AND SURTAXES · Subchapter K— Partners and Partnerships · § 702

§ 702. Income and credits of partner

1,407 words·~6 min read·/usc/title-26/section-702

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule In determining his income tax, each partner shall take into account separately his distributive share of the partnership’s—
(1)gains and losses from sales or exchanges of capital assets held for not more than 1 year,
(2)gains and losses from sales or exchanges of capital assets held for more than 1 year,
(3)gains and losses from sales or exchanges of property described in section 1231 (relating to certain property used in a trade or business and involuntary conversions),
(4)charitable contributions (as defined in section 170(c)),
(5)dividends with respect to which section 1(h)(11) or part VIII of subchapter B applies,
(6)taxes, described in section 901, paid or accrued to foreign countries and to possessions of the United States,
(7)other items of income, gain, loss, deduction, or credit, to the extent provided by regulations prescribed by the Secretary, and
(8)taxable income or loss, exclusive of items requiring separate computation under other paragraphs of this subsection.
(b)Character of items constituting distributive share The character of any item of income, gain, loss, deduction, or credit included in a partner’s distributive share under paragraphs
(1)through
(7)of subsection
(a)shall be determined as if such item were realized directly from the source from which realized by the partnership, or incurred in the same manner as incurred by the partnership.
(c)Gross income of a partner In any case where it is necessary to determine the gross income of a partner for purposes of this title, such amount shall include his distributive share of the gross income of the partnership.
(d)Cross reference For rules relating to procedures for determining the tax treatment of partnership items see subchapter C of chapter 63 (section 6221 and following).
(Aug. 16, 1954, ch. 736, 68A Stat. 239; Pub. L. 88–272, title II, § 201(d)(7), Feb. 26, 1964, 78 Stat. 32; Pub. L. 94–455, title XIV, § 1402(b)(1)(L), (2), title XIX, §§ 1901(b)(1)(I)(i), (ii), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1732, 1791, 1834; Pub. L. 96–223, title IV, § 404(b)(5), Apr. 2, 1980, 94 Stat. 307; Pub. L. 97–34, title III, § 301(b)(5), (6)(C), Aug. 13, 1981, 95 Stat. 270; Pub. L. 97–248, title IV, § 402(c)(1), Sept. 3, 1982, 96 Stat. 667; Pub. L. 97–448, title I, § 103(a)(4), Jan. 12, 1983, 96 Stat. 2375;
Pub. L. 98–369, div. A, title X, § 1001(b)(9), (e), July 18, 1984, 98 Stat. 1011, 1012; Pub. L. 99–514, title VI, § 612(b)(5), Oct. 22, 1986, 100 Stat. 2250; Pub. L. 108–27, title III, § 302(e)(8), May 28, 2003, 117 Stat. 764.)
Connections29 cite this · traces to 9
Cited by 29 sections · top 27
51 references not yet in our index
  • Aug. 16, 1954, ch. 736
  • 68A Stat. 239
  • Pub. L. 88–272, title II, § 201(d)(7)
  • 78 Stat. 32
  • Pub. L. 94–455, title XIV, § 1402(b)(1)(L)
  • 90 Stat. 1732
  • Pub. L. 96–223, title IV, § 404(b)(5)
  • 94 Stat. 307
  • Pub. L. 97–34, title III, § 301(b)(5)
  • 95 Stat. 270
  • Pub. L. 97–248, title IV, § 402(c)(1)
  • 96 Stat. 667
  • Pub. L. 97–448, title I, § 103(a)(4)
  • 96 Stat. 2375
  • Pub. L. 98–369, div. A, title X, § 1001(b)(9)
  • 98 Stat. 1011
  • Pub. L. 99–514, title VI, § 612(b)(5)
  • 100 Stat. 2250
  • Pub. L. 108–27, title III, § 302(e)(8)
  • 117 Stat. 764
  • Pub. L. 108–27
  • Pub. L. 99–514
  • Pub. L. 98–369
  • Pub. L. 97–448
  • Pub. L. 97–248
  • Pub. L. 97–34, § 301(b)(6)(C)
  • Pub. L. 96–223
  • Pub. L. 97–34, § 301(b)(5)
  • Pub. L. 94–455, § 1402(b)(2)
  • Pub. L. 94–455, § 1402(b)(1)(L)
  • Pub. L. 94–455
  • Pub. L. 94–455, § 1901(b)(1)(I)(ii)
  • Pub. L. 88–272
  • section 302(f) of Pub. L. 108–27
  • section 612(c) of Pub. L. 99–514
  • section 1001(e) of Pub. L. 98–369
  • Pub. L. 97–34
  • section 109 of Pub. L. 97–448
  • Pub. L. 97–248, title IV, § 407(a)
  • 96 Stat. 670
+ 11 more
Citation graph
cites case law
§ 702
Income and credits of partner
U.S.C.×18
Stat.×11
ActAug. 16, 1954, ch. 736
Stat.68A Stat. 239
Pub. L.Pub. L. 88–272, title II, § 201(d)(7)
Cites 60 · showing 12Cited by 29 across 2 sources
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