Internal Revenue Code – Section 703

Sec. 703. Partnership computations

-STATUTE-

(a) Income and deductions

The taxable income of a partnership shall be computed in the same

manner as in the case of an individual except that -

(1) the items described in section 702(a) shall be separately

stated, and

(2) the following deductions shall not be allowed to the

partnership:

(A) the deductions for personal exemptions provided in

section 151,

(B) the deduction for taxes provided in section 164(a) with

respect to taxes, described in section 901, paid or accrued to

foreign countries and to possessions of the United States,

(C) the deduction for charitable contributions provided in

section 170,

(D) the net operating loss deduction provided in section 172,

(E) the additional itemized deductions for individuals

provided in part VII of subchapter B (sec. 211 and following),

and

(F) the deduction for depletion under section 611 with

respect to oil and gas wells.

(b) Elections of the partnership

Any election affecting the computation of taxable income derived

from a partnership shall be made by the partnership, except that

any election under -

(1) subsection (b)(5) or (c)(3) of section 108 (relating to

income from discharge of indebtedness),

(2) section 617 (relating to deduction and recapture of certain

mining exploration expenditures), or

(3) section 901 (relating to taxes of foreign countries and

possessions of the United States),

 

shall be made by each partner separately.

 

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 240; Pub. L. 89-570, Sec. 2(b),

Sept. 12, 1966, 80 Stat. 764; Pub. L. 91-172, title V, Sec.

504(c)(3), Dec. 30, 1969, 83 Stat. 633; Pub. L. 92-178, title III,

Sec. 304(c), Dec. 10, 1971, 85 Stat. 523; Pub. L. 94-12, title V,

Sec. 501(b)(3), Mar. 29, 1975, 89 Stat. 53; Pub. L. 94-455, title

XIX, Sec. 1901(b)(21)(F), title XXI, Sec. 2115(c)(2), Oct. 4, 1976,

90 Stat. 1798, 1909; Pub. L. 95-30, title I, Sec. 101(d)(10), May

23, 1977, 91 Stat. 134; Pub. L. 96-589, Sec. 2(e)(1), Dec. 24,

1980, 94 Stat. 3396; Pub. L. 99-514, title V, Sec. 511(d)(2)(B),

title VII, Sec. 701(e)(4)(E), Oct. 22, 1986, 100 Stat. 2249, 2343;

Pub. L. 100-647, title I, Sec. 1008(i), Nov. 10, 1988, 102 Stat.

3445; Pub. L. 103-66, title XIII, Sec. 13150(c)(9), Aug. 10, 1993,

107 Stat. 448.)

 

 

-MISC1-

AMENDMENTS

1993 - Subsec. (b)(1). Pub. L. 103-66 substituted "subsection

(b)(5) or (c)(3)" for "subsection (b)(5)".

1988 - Subsec. (b)(1). Pub. L. 100-647 substituted "subsection

(b)(5)" for "subsection (b)(5) or (d)(4)".

1986 - Subsec. (b). Pub. L. 99-514 struck out former pars. (1)

and (3) which related to elections under sections 57(c) and 163(d),

respectively, and redesignated former pars. (2), (4), and (5), as

pars. (1), (2), and (3), respectively.

1980 - Subsec. (b). Pub. L. 96-589 inserted reference to section

108(b)(5) and (d)(4).

1977 - Subsec. (a)(2). Pub. L. 95-30 struck out subpar. (A) which

made reference to the standard deduction provided in section 141,

and redesignated subpars. (B) to (G) as (A) to (F), respectively.

1976 - Subsec. (a)(2)(G). Pub. L. 94-455, Sec. 2115(c)(2),

substituted "wells" for "production subject to the provisions of

section 613A(c)".

Subsec. (b). Pub. L. 94-455, Sec. 1901(b)(21)(F), struck out

"under section 615 (relating to pre-1970 exploration

expenditures)," after "of the United States, and any election".

1975 - Subsec. (a)(2)(G). Pub. L. 94-12 added subpar. (G).

1971 - Subsec. (b). Pub. L. 92-178 substituted "," for "or" after

"(relating to pre-1970 exploration expenditures)" and inserted

"under section 57(c) (relating to definition of net lease), or

under section 163(d) (relating to limitation on interest on

investment indebtedness)" after "(relating to deduction and

recapture of certain mining exploration expenditures)".

1969 - Subsec. (b). Pub. L. 91-172 substituted "(relating to pre-

1970 exploration expenditures) or under section 617 (relating to

deduction and recapture of certain mining exploration

expenditures)" for "(relating to exploration expenditures) or under

section 617 (relating to additional exploration expenditures in the

case of domestic mining)".

1966 - Subsec. (b). Pub. L. 89-570 provided for election under

section 615 (relating to exploration expenditures) or under section

617 (relating to additional exploration expenditures in the case of

domestic mining).

 

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 applicable to discharges after Dec.

31, 1992, in taxable years ending after such date, see section

13150(d) of Pub. L. 103-66, set out as a note under section 108 of

this title.

 

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 effective, except as otherwise

provided, as if included in the provision of the Tax Reform Act of

1986, Pub. L. 99-514, to which such amendment relates, see section

1019(a) of Pub. L. 100-647, set out as a note under section 1 of

this title.

 

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by section 511(d)(2)(B) of Pub. L. 99-514 applicable to

taxable years beginning after Dec. 31, 1986, see section 511(e) of

Pub. L. 99-514, set out as a note under section 163 of this title.

Amendment by section 701(e)(4)(E) of Pub. L. 99-514 applicable to

taxable years beginning after Dec. 31, 1986, with certain

exceptions and qualifications, see section 701(f) of Pub. L. 99-

514, set out as an Effective Date note under section 55 of this

title.

 

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-589 applicable to transactions which

occur after Dec. 31, 1980, other than transactions which occur in a

proceeding in a bankruptcy case or similar judicial proceeding or

in a proceeding under Title 11 commencing on or after Dec. 31,

1980, with an exception permitting the debtor to make the amendment

applicable to transactions occurring after Sept. 30, 1979; in a

specified manner, see section 7(a)(1), (f) of Pub. L. 96-589, set

out as a note under section 108 of this title.

 

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-30 applicable to taxable years beginning

after Dec. 31, 1976, see section 106(a) of Pub. L. 95-30, set out

as a note under section 1 of this title.

 

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1901(b)(21)(F) of Pub. L. 94-455 effective

for taxable years beginning after Dec. 31, 1976, see section

1901(d) of Pub. L. 94-455, set out as a note under section 2 of

this title.

Amendment by section 2115(c)(2) of Pub. L. 94-455 effective on

Jan. 1, 1975 and applicable to taxable years ending after Dec. 31,

1974, see section 2115(f) of Pub. L. 94-455, set out as a note

under section 613A of this title.

 

EFFECTIVE DATE OF 1975 AMENDMENT

Amendment by Pub. L. 94-12 effective Jan. 1, 1975, to apply to

taxable years ending after Dec. 31, 1974, see section 501(c) of

Pub. L. 94-12, set out as an Effective Date note under section 613A

of this title.

 

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 applicable with respect to

exploration expenditures paid or incurred after Dec. 31, 1969, see

section 504(d)(1) of Pub. L. 91-172, set out as an Effective Date

note under section 243 of this title.

 

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-570 applicable to taxable years ending

after Sept. 12, 1966, but only in respect of expenditures paid or

incurred after such date, see section 3 of Pub. L. 89-570, set out

as an Effective Date note under section 617 of this title.

 

APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99-514 IN RELATION

TO TREATY OBLIGATIONS OF UNITED STATES

For applicability of amendment by section 701(e)(4)(E) of Pub. L.

99-514 notwithstanding any treaty obligation of the United States

in effect on Oct. 22, 1986, with provision that for such purposes

any amendment by title I of Pub. L. 100-647 be treated as if it had

been included in the provision of Pub. L. 99-514 to which such

amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100-647,

set out as a note under section 861 of this title.

 

-End-