2018 US Code
Title 26 - Internal Revenue Code
Subtitle A - Income Taxes
Chapter 1 - Normal Taxes and Surtaxes
Subchapter K - Partners and Partnerships
Part I - Determination of Tax Liability
Sec. 708 - Continuation of partnership

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Citation 26 U.S.C. § 708 (2018)
Section Name §708. Continuation of partnership
Section Text (a) General rule

For purposes of this subchapter, an existing partnership shall be considered as continuing if it is not terminated.

(b) Termination (1) General rule

For purposes of subsection (a), a partnership shall be considered as terminated only if no part of any business, financial operation, or venture of the partnership continues to be carried on by any of its partners in a partnership.

(2) Special rules (A) Merger or consolidation

In the case of the merger or consolidation of two or more partnerships, the resulting partnership shall, for purposes of this section, be considered the continuation of any merging or consolidating partnership whose members own an interest of more than 50 percent in the capital and profits of the resulting partnership.

(B) Division of a partnership

In the case of a division of a partnership into two or more partnerships, the resulting partnerships (other than any resulting partnership the members of which had an interest of 50 percent or less in the capital and profits of the prior partnership) shall, for purposes of this section, be considered a continuation of the prior partnership.

Source Credit

(Aug. 16, 1954, ch. 736, 68A Stat. 244; Pub. L. 115–97, title I, §13504(a), Dec. 22, 2017, 131 Stat. 2141.)

Editorial Notes AMENDMENTS

2017—Subsec. (b)(1). Pub. L. 115–97 struck out dash after "only if" and subpar. (A) designation before "no part" and struck out subpar. (B) which read as follows: "within a 12-month period there is a sale or exchange of 50 percent or more of the total interest in partnership capital and profits".

EFFECTIVE DATE OF 2017 AMENDMENT

Amendment by Pub. L. 115–97 applicable to partnership taxable years beginning after Dec. 31, 2017, see section 13504(c) of Pub. L. 115–97, set out as a note under section 168 of this title.

Publication Title United States Code, 2018 Edition, 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 I - DETERMINATION OF TAX LIABILITY
Sec. 708 - Continuation of partnership
Contains section 708
Date 2018
Laws In Effect As Of Date January 14, 2019
Positive Law No
Disposition standard
Statutes at Large References 131 Stat. 2141
Public Law References Public Law 115-97
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