2015 US Code
Title 26 - Internal Revenue Code (Sections 1 - 9834)
Subtitle A - Income Taxes (Sections 1 - 1564)
Chapter 1 - Normal Taxes and Surtaxes (Sections 1 - 1400U-3)
Subchapter K - Partners and Partnerships (Sections 701 - 777)
Part IV - Special Rules for Electing Large Partnerships (Sections 771 - 777)
Sec. 774 - Other modifications
Publication Title | United States Code, 2012 Edition, Supplement 3, Title 26 - INTERNAL REVENUE CODE |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 26 - INTERNAL REVENUE CODE Subtitle A - Income Taxes CHAPTER 1 - NORMAL TAXES AND SURTAXES Subchapter K - Partners and Partnerships PART IV - SPECIAL RULES FOR ELECTING LARGE PARTNERSHIPS Sec. 774 - Other modifications |
Contains | section 774 |
Date | 2015 |
Laws In Effect As Of Date | January 3, 2016 |
Positive Law | No |
Disposition | standard |
Source Credit | Added Pub. L. 105-34, title XII, §1221(a), Aug. 5, 1997, 111 Stat. 1005; amended Pub. L. 105-206, title VI, §6012(c), July 22, 1998, 112 Stat. 819. |
Statutes at Large References | 111 Stat. 1005 112 Stat. 819 129 Stat. 625 |
Public and Private Laws | Public Law 105-34, Public Law 105-206, Public Law 114-74 |
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In the case of an electing large partnership—
(1) computations under section 773 shall be made without regard to any adjustment under section 743(b) or 108(b), but
(2) a partner's distributive share of any amount referred to in section 772(a) shall be appropriately adjusted to take into account any adjustment under section 743(b) or 108(b) with respect to such partner.
(b) Credit recapture determined at partnership level(1) In generalIn the case of an electing large partnership—
(A) any credit recapture shall be taken into account by the partnership, and
(B) the amount of such recapture shall be determined as if the credit with respect to which the recapture is made had been fully utilized to reduce tax.
(2) Method of taking recapture into accountAn electing large partnership shall take into account a credit recapture by reducing the amount of the appropriate current year credit to the extent thereof, and if such recapture exceeds the amount of such current year credit, the partnership shall be liable to pay such excess.
(3) Dispositions not to trigger recaptureNo credit recapture shall be required by reason of any transfer of an interest in an electing large partnership.
(4) Credit recaptureFor purposes of this subsection, the term "credit recapture" means any increase in tax under section 42(j) or 50(a).
(c) Partnership not terminated by reason of change in ownershipSubparagraph (B) of section 708(b)(1) shall not apply to an electing large partnership.
(d) Partnership entitled to certain creditsThe following shall be allowed to an electing large partnership and shall not be taken into account by the partners of such partnership:
(1) The credit provided by section 34.
(2) Any credit or refund under section 852(b)(3)(D) or 857(b)(3)(D).
(e) Treatment of REMIC residualsFor purposes of applying section 860E(e)(6) to any electing large partnership—
(1) all interests in such partnership shall be treated as held by disqualified organizations,
(2) in lieu of applying subparagraph (C) of section 860E(e)(6), the amount subject to tax under section 860E(e)(6) shall be excluded from the gross income of such partnership, and
(3) subparagraph (D) of section 860E(e)(6) shall not apply.
(f) Special rules for applying certain installment sale rulesIn the case of an electing large partnership—
(1) the provisions of sections 453(l)(3) and 453A shall be applied at the partnership level, and
(2) in determining the amount of interest payable under such sections, such partnership shall be treated as subject to tax under this chapter at the highest rate of tax in effect under section 1 or 11.
(Added Pub. L. 105–34, title XII, §1221(a), Aug. 5, 1997, 111 Stat. 1005; amended Pub. L. 105–206, title VI, §6012(c), July 22, 1998, 112 Stat. 819.)
Repeal of SectionPub. L. 114–74, title XI, §1101(b)(1), (g), Nov. 2, 2015, 129 Stat. 625, 638, provided that, applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, this section is repealed.
AMENDMENTS1998—Subsec. (d)(2). Pub. L. 105–206 inserted "or 857(b)(3)(D)" before period at end.
EFFECTIVE DATE OF REPEALRepeal applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of Pub. L. 114–74, set out as an Effective Date of 2015 Amendment note under section 6221 of this title.
EFFECTIVE DATE OF 1998 AMENDMENTAmendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
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