Internal Revenue Code Subchapter K

Code subchapter k.

Internal revenue code subchapter k. Table of popular names. 94 455 title ii 213 b 2 title xix 1901 b 23 oct. Subchapter k of the internal revenue code of 1954 sections 701 through 761 1 contains the statutory rules for taxation of partners and partnerships. Anyone who has tried to gain a working knowledge of these sections will readily agree that one of the most important questions about subchapter k is how one avoids it.

The irc is title 26 of the united states code wherein subchapter k of chapter 1 creates tax consequences of such great scale and scope that it effectively serves as a federal statutory scheme for governing partnerships. If an arrangement has only the expense sharing motive it does not come under the rules of subchapter k. Partners not partnership subject to tax. A partnership as such shall not be subject to the income tax imposed by this chapter.

Subchapter k relating to exceptional payment for nursing facility services. 1547 1798 struck out part iv effective date for subchapter in table of parts of subchapter k of chapter 1 and added item 709. Free access to full text of the internal revenue code including editor s notes and updated continuously from bloomberg tax. 4 1976 90 stat.

Parallel table of authorities. That is where the similarities end. Subchapter k of the internal revenue code applies a mixture of the aggregate and entity theories of partnerships. Subchapter k subchapter k partners and partnerships sections 701 to 777 part i determination of tax liability sections 701 to 709.

Both subchapter k and s of the internal revenue code irc are pass through tax structures in which the members of the entity are taxed for the entity s income gains losses and expenses on their individual tax returns.