HR 1935 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide for the treatment of partnership interests held by partners providing services.CommentsClose CommentsPermalink

April 2, 2009CommentsClose CommentsPermalink

Mr. LEVIN introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide for the treatment of partnership interests held by partners providing services.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION WITH PERFORMANCE OF SERVICES.

(a) Modification to Election To Include Partnership Interest in Gross Income in Year of Transfer- Subsection (c) of section 83 of the Internal Revenue Code of 1986 is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:CommentsClose CommentsPermalink





‘(4) PARTNERSHIP INTERESTS- Except as provided by the Secretary, in the case of any transfer of an interest in a partnership in connection with the performance of services for (or on behalf of) such partnership--CommentsClose CommentsPermalink





‘(A) the fair market value of such interest shall be treated for purposes of this section as being equal to the amount of the distribution which the partner would receive if the partnership sold (at the time of the transfer) all of its assets at fair market value and distributed the proceeds of such sale (reduced by the liabilities of the partnership) to its partners in liquidation of the partnership, andCommentsClose CommentsPermalink





‘(B) the person receiving such interest shall be treated as having made the election under subsection (b)(1) unless such person makes an election under this paragraph to have such subsection not apply.’.CommentsClose CommentsPermalink





(b) Conforming Amendment- Paragraph (2) of section 83(b) of such Code is amended by inserting ‘or subsection (c)(4)(B)’ after ‘paragraph (1)’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to interests in partnerships transferred after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 2. INCOME OF PARTNERS FOR PERFORMING INVESTMENT MANAGEMENT SERVICES TREATED AS ORDINARY INCOME RECEIVED FOR PERFORMANCE OF SERVICES.

(a) In General- Part I of subchapter K of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT SERVICES TO PARTNERSHIP.

‘(a) Treatment of Distributive Share of Partnership Items- For purposes of this title, in the case of an investment services partnership interest--CommentsClose CommentsPermalink





‘(1) IN GENERAL- Notwithstanding section 702(b)--CommentsClose CommentsPermalink





‘(A) any net income with respect to such interest for any partnership taxable year shall be treated as ordinary income, andCommentsClose CommentsPermalink





‘(B) any net loss with respect to such interest for such year, to the extent not disallowed under paragraph (2) for such year, shall be treated as an ordinary loss.CommentsClose CommentsPermalink





All items of income, gain, deduction, and loss which are taken into account in computing net income or net loss shall be treated as ordinary income or ordinary loss (as the case may be).CommentsClose CommentsPermalink





‘(2) TREATMENT OF LOSSES-CommentsClose CommentsPermalink





‘(A) LIMITATION- Any net loss with respect to such interest shall be allowed for any partnership taxable year only to the extent that such loss does not exceed the excess (if any) of--CommentsClose CommentsPermalink





‘(i) the aggregate net income with respect to such interest for all prior partnership taxable years, overCommentsClose CommentsPermalink





‘(ii) the aggregate net loss with respect to such interest not disallowed under this subparagraph for all prior partnership taxable years.CommentsClose CommentsPermalink





‘(B) CARRYFORWARD- Any net loss for any partnership taxable year which is not allowed by reason of subparagraph (A) shall be treated as an item of loss with respect to such partnership interest for the succeeding partnership taxable year.CommentsClose CommentsPermalink





‘(C) BASIS ADJUSTMENT- No adjustment to the basis of a partnership interest shall be made on account of any net loss which is not allowed by reason of subparagraph (A).CommentsClose CommentsPermalink





‘(D) PRIOR PARTNERSHIP YEARS- Any reference in this paragraph to prior partnership taxable years shall only include prior partnership taxable years to which this section applies.CommentsClose CommentsPermalink





‘(3) NET INCOME AND LOSS- For purposes of this section--CommentsClose CommentsPermalink





‘(A) NET INCOME- The term ‘net income’ means, with respect to any investment services partnership interest for any partnership taxable year, the excess (if any) of--CommentsClose CommentsPermalink





‘(i) all items of income and gain taken into account by the holder of such interest under section 702 with respect to such interest for such year, overCommentsClose CommentsPermalink





‘(ii) all items of deduction and loss so taken into account.CommentsClose CommentsPermalink





‘(B) NET LOSS- The term ‘net loss’ means, with respect to such interest for such year, the excess (if any) of the amount described in subparagraph (A)(ii) over the amount described in subparagraph (A)(i).CommentsClose CommentsPermalink





‘(b) Dispositions of Partnership Interests-CommentsClose CommentsPermalink





‘(1) GAIN- Any gain on the disposition of an investment services partnership interest shall be treated as ordinary income and shall be recognized notwithstanding any other provision of this subtitle.CommentsClose CommentsPermalink





‘(2) LOSS- Any loss on the disposition of an investment services partnership interest shall be treated as an ordinary loss to the extent of the excess (if any) of--CommentsClose CommentsPermalink





‘(A) the aggregate net income with respect to such interest for all partnership taxable years, overCommentsClose CommentsPermalink





‘(B) the aggregate net loss with respect to such interest allowed under subsection (a)(2) for all partnership taxable years.CommentsClose CommentsPermalink





‘(3) DISPOSITION OF PORTION OF INTEREST- In the case of any disposition of an investment services partnership interest, the amount of net loss which otherwise would have (but for subsection (a)(2)(C)) applied to reduce the basis of such interest shall be disregarded for purposes of this section for all succeeding partnership taxable years.CommentsClose CommentsPermalink





‘(4) DISTRIBUTIONS OF PARTNERSHIP PROPERTY- In the case of any distribution of property by a partnership with respect to any investment services partnership interest held by a partner--CommentsClose CommentsPermalink





‘(A) the excess (if any) of--CommentsClose CommentsPermalink





‘(i) the fair market value of such property at the time of such distribution, overCommentsClose CommentsPermalink





‘(ii) the adjusted basis of such property in the hands of the partnership,CommentsClose CommentsPermalink





shall be taken into account as an increase in such partner’s distributive share of the taxable income of the partnership (except to the extent such excess is otherwise taken into account in determining the taxable income of the partnership),CommentsClose CommentsPermalink





‘(B) such property shall be treated for purposes of subpart B of part II as money distributed to such partner in an amount equal to such fair market value, andCommentsClose CommentsPermalink





‘(C) the basis of such property in the hands of such partner shall be such fair market value.CommentsClose CommentsPermalink





Subsection (b) of section 734 shall be applied without regard to the preceding sentence.CommentsClose CommentsPermalink





‘(5) APPLICATION OF SECTION 751- In applying section 751(a), an investment services partnership interest shall be treated as an inventory item.CommentsClose CommentsPermalink





‘(c) Investment Services Partnership Interest- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘investment services partnership interest’ means any interest in a partnership which is held by any person if it was reasonably expected (at the time that such person acquired such interest) that such person (or any person related to such person) would provide (directly or indirectly) a substantial quantity of any of the following services:CommentsClose CommentsPermalink





‘(A) Advising as to the advisability of investing in, purchasing, or selling any specified asset.CommentsClose CommentsPermalink





‘(B) Managing, acquiring, or disposing of any specified asset.CommentsClose CommentsPermalink





‘(C) Arranging financing with respect to acquiring specified assets.CommentsClose CommentsPermalink





‘(D) Any activity in support of any service described in subparagraphs (A) through (C).CommentsClose CommentsPermalink





For purposes of this paragraph, the term ‘specified asset’ means securities (as defined in section 475(c)(2) without regard to the last sentence thereof), real estate held for rental or investment, interests in partnerships, commodities (as defined in section 475(e)(2)), or options or derivative contracts with respect to any of the foregoing.CommentsClose CommentsPermalink





‘(2) EXCEPTION FOR CERTAIN CAPITAL INTERESTS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of any portion of an investment services partnership interest which is a qualified capital interest, all items of income, gain, loss, and deduction which are allocated to such qualified capital interest shall not be taken into account under subsection (a) if--CommentsClose CommentsPermalink





‘(i) allocations of items are made by the partnership to such qualified capital interest in the same manner as such allocations are made to other qualified capital interests held by partners who do not provide any services described in paragraph (1) and who are not related to the partner holding the qualified capital interest, andCommentsClose CommentsPermalink





‘(ii) the allocations made to such other interests are significant compared to the allocations made to such qualified capital interest.CommentsClose CommentsPermalink





‘(B) SPECIAL RULE FOR DISPOSITIONS- In the case of any investment services partnership interest any portion of which is a qualified capital interest, subsection (b) shall not apply to so much of any gain or loss as bears the same proportion to the entire amount of such gain or loss as--CommentsClose CommentsPermalink





‘(i) the distributive share of gain or loss that would have been allocable to the qualified capital interest under subparagraph (A) if the partnership sold all of its assets immediately before the disposition, bears toCommentsClose CommentsPermalink





‘(ii) the distributive share of gain or loss that would have been so allocable to the investment services partnership interest of which such qualified capital interest is a part.CommentsClose CommentsPermalink





‘(C) QUALIFIED CAPITAL INTEREST- For purposes of this paragraph, the term ‘qualified capital interest’ means so much of a partner’s interest in the capital of the partnership as is attributable to--CommentsClose CommentsPermalink





‘(i) the fair market value of any money or other property contributed to the partnership in exchange for such interest,CommentsClose CommentsPermalink





‘(ii) any amounts which have been included in gross income under section 83 with respect to the transfer of such interest, andCommentsClose CommentsPermalink





‘(iii) the excess (if any) of--CommentsClose CommentsPermalink





‘(I) any items of income and gain taken into account under section 702 with respect to such interest for taxable years to which this section applies, overCommentsClose CommentsPermalink





‘(II) any items of deduction and loss so taken into account.CommentsClose CommentsPermalink





The qualified capital interest shall be reduced by distributions from the partnership to the partner and by the excess (if any) of the amount described in clause (iii)(II) over the amount described in clause (iii)(I).CommentsClose CommentsPermalink





‘(D) TREATMENT OF CERTAIN LOANS-CommentsClose CommentsPermalink





‘(i) PROCEEDS OF PARTNERSHIP LOANS NOT TREATED AS QUALIFIED CAPITAL INTEREST OF SERVICE PROVIDING PARTNERS- For purposes of this paragraph, an investment services partnership interest shall not be treated as a qualified capital interest to the extent that such interest is acquired in connection with the proceeds of any loan or other advance made or guaranteed, directly or indirectly, by any partner or the partnership (or any person related to any such partner or the partnership).CommentsClose CommentsPermalink





‘(ii) REDUCTION IN ALLOCATIONS TO QUALIFIED CAPITAL INTERESTS FOR LOANS FROM NONSERVICE PROVIDING PARTNERS TO THE PARTNERSHIP- For purposes of this paragraph, any loan or other advance to the partnership made or guaranteed, directly or indirectly, by a partner not providing services described in paragraph (1) to the partnership (or any person related to such partner) shall be taken into account as invested capital of such partner.CommentsClose CommentsPermalink





‘(3) RELATED PERSONS- A person shall be treated as related to another person if the relationship between such persons would result in a disallowance of losses under section 267 or 707(b).CommentsClose CommentsPermalink





‘(d) Other Income and Gain in Connection With Investment Management Services-CommentsClose CommentsPermalink





‘(1) IN GENERAL- If--CommentsClose CommentsPermalink





‘(A) a person performs (directly or indirectly) investment management services for any entity,CommentsClose CommentsPermalink





‘(B) such person holds a disqualified interest with respect to such entity, andCommentsClose CommentsPermalink





‘(C) the value of such interest (or payments thereunder) is substantially related to the amount of income or gain (whether or not realized) from the assets with respect to which the investment management services are performed,CommentsClose CommentsPermalink





any income or gain with respect to such interest shall be treated as ordinary income. Rules similar to the rules of subsection (c)(2) shall apply where such interest was acquired on account of invested capital in such entity.CommentsClose CommentsPermalink





‘(2) DEFINITIONS- For purposes of this subsection--CommentsClose CommentsPermalink





‘(A) DISQUALIFIED INTEREST-CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term ‘disqualified interest’ means, with respect to any entity--CommentsClose CommentsPermalink





‘(I) any interest in such entity other than indebtedness,CommentsClose CommentsPermalink





‘(II) convertible or contingent debt of such entity,CommentsClose CommentsPermalink





‘(III) any option or other right to acquire property described in subclause (I) or (II), andCommentsClose CommentsPermalink





‘(IV) any derivative instrument entered into (directly or indirectly) with such entity or any investor in such entity.CommentsClose CommentsPermalink





‘(ii) EXCEPTIONS- Such term shall not include--CommentsClose CommentsPermalink





‘(I) a partnership interest,CommentsClose CommentsPermalink





‘(II) stock in a taxable corporation, andCommentsClose CommentsPermalink





‘(III) except as provided by the Secretary, stock in an S corporation.CommentsClose CommentsPermalink





‘(B) TAXABLE CORPORATION- The term ‘taxable corporation’ means--CommentsClose CommentsPermalink





‘(i) a domestic C corporation, orCommentsClose CommentsPermalink





‘(ii) a foreign corporation substantially all of the income of which is--CommentsClose CommentsPermalink





‘(I) effectively connected with the conduct of a trade or business in the United States, orCommentsClose CommentsPermalink





‘(II) subject to a comprehensive foreign income tax (as defined in section 457A(d)(2)).CommentsClose CommentsPermalink





‘(C) INVESTMENT MANAGEMENT SERVICES- The term ‘investment management services’ means a substantial quantity of any of the services described in subsection (c)(1).CommentsClose CommentsPermalink





‘(e) Regulations- The Secretary shall prescribe such regulations as are necessary or appropriate to carry out the purposes of this section, including regulations to--CommentsClose CommentsPermalink





‘(1) provide modifications to the application of this section (including treating related persons as not related to one another) to the extent such modification is consistent with the purposes of this section,CommentsClose CommentsPermalink





‘(2) prevent the avoidance of the purposes of this section, andCommentsClose CommentsPermalink





‘(3) coordinate this section with the other provisions of this title.CommentsClose CommentsPermalink





‘(f) Cross Reference- For 40 percent no fault penalty on certain underpayments due to the avoidance of this section, see section 6662.’.CommentsClose CommentsPermalink





(b) Income From Investment Services Partnership Interests Not Treated as Qualifying Income of Publicly Traded Partnerships- Subsection (d) of section 7704 of such Code is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(6) INCOME FROM INVESTMENT SERVICES PARTNERSHIP INTERESTS NOT QUALIFIED-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Items of income and gain shall not be treated as qualifying income if such items are treated as ordinary income by reason of the application of section 710 (relating to special rules for partners providing investment management services to partnership).CommentsClose CommentsPermalink





‘(B) SPECIAL RULES FOR CERTAIN PARTNERSHIPS-CommentsClose CommentsPermalink





‘(i) CERTAIN PARTNERSHIPS OWNED BY REAL ESTATE INVESTMENT TRUSTS- Subparagraph (A) shall not apply in the case of a partnership which meets each of the following requirements:CommentsClose CommentsPermalink





‘(I) Such partnership is treated as publicly traded under this section solely by reason of interests in such partnership being convertible into interests in a real estate investment trust which is publicly traded.CommentsClose CommentsPermalink





‘(II) 50 percent or more of the capital and profits interests of such partnership are owned, directly or indirectly, at all times during the taxable year by such real estate investment trust (determined with the application of section 267(c)).CommentsClose CommentsPermalink





‘(III) Such partnership meets the requirements of paragraphs (2), (3), and (4) of section 856(c).CommentsClose CommentsPermalink





‘(ii) CERTAIN PARTNERSHIPS OWNING OTHER PUBLICLY TRADED PARTNERSHIPS- Subparagraph (A) shall not apply in the case of a partnership which meets each of the following requirements:CommentsClose CommentsPermalink





‘(I) Substantially all of the assets of such partnership consist of interests in one or more other partnerships which are traded on an established securities market.CommentsClose CommentsPermalink





‘(II) Substantially all of the income of such partnership is ordinary income or section 1231 gain (as defined in section 1231(a)(3)).CommentsClose CommentsPermalink





‘(C) TRANSITIONAL RULE- In the case of a partnership in existence on the date of the enactment of this paragraph, subparagraph (A) shall not apply to any taxable year of the partnership beginning before the date which is 10 years after the date of the enactment of this paragraph.’.CommentsClose CommentsPermalink





(c) Imposition of Penalty on Underpayments-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (b) of section 6662 of such Code is amended by inserting after paragraph (5) the following new paragraph:CommentsClose CommentsPermalink





‘(6) The application of subsection (d) of section 710 or the regulations prescribed under section 710(e) to prevent the avoidance of the purposes of section 710.’.CommentsClose CommentsPermalink





(2) AMOUNT OF PENALTY-CommentsClose CommentsPermalink





(A) IN GENERAL- Section 6662 of such Code is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(i) Increase in Penalty in Case of Property Transferred for Investment Management Services- In the case of any portion of an underpayment to which this section applies by reason of subsection (b)(6), subsection (a) shall be applied with respect to such portion by substituting ‘40 percent’ for ‘20 percent’.’.CommentsClose CommentsPermalink





(B) CONFORMING AMENDMENTS- Subparagraph (B) of section 6662A(e)(2) of such Code is amended--CommentsClose CommentsPermalink





(i) by striking ‘section 6662(h)’ and inserting ‘subsection (h) or (i) of section 6662’, andCommentsClose CommentsPermalink





(ii) by striking ‘GROSS VALUATION MISSTATEMENT PENALTY’ in the heading and inserting ‘CERTAIN INCREASED UNDERPAYMENT PENALTIES’.CommentsClose CommentsPermalink





(3) REASONABLE CAUSE EXCEPTION NOT APPLICABLE- Subsection (c) of section 6664 of such Code is amended--CommentsClose CommentsPermalink





(A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively,CommentsClose CommentsPermalink





(B) by striking ‘paragraph (2)’ in paragraph (4), as so redesignated, and inserting ‘paragraph (3)’, andCommentsClose CommentsPermalink





(C) by inserting after paragraph (1) the following new paragraph:CommentsClose CommentsPermalink





‘(2) EXCEPTION- Paragraph (1) shall not apply to any portion of an underpayment to which this section applies by reason of subsection (b)(6).’.CommentsClose CommentsPermalink





(d) Income and Loss From Investment Services Partnership Interests Taken Into Account in Determining Net Earning From Self-Employment-CommentsClose CommentsPermalink





(1) INTERNAL REVENUE CODE- Section 1402(a) of such Code is amended by striking ‘and’ at the end of paragraph (16), by striking the period at the end of paragraph (17) and inserting ‘; and’, and by inserting after paragraph (17) the following new paragraph:CommentsClose CommentsPermalink





‘(18) notwithstanding the preceding provisions of this subsection, any amount treated as ordinary income or ordinary loss of any individual under section 710 shall be taken into account in determining the net earnings from self-employment of such individual.’.CommentsClose CommentsPermalink





(2) SOCIAL SECURITY ACT- Section 211(a) of the Social Security Act is amended by inserting after paragraph (16) the following new paragraph:CommentsClose CommentsPermalink





‘(17) Notwithstanding the preceding provisions of this subsection, any amount treated as ordinary income or ordinary loss of any individual under section 710 of the Internal Revenue Code of 1986 shall be taken into account in determining the net earnings from self-employment of such individual.’.CommentsClose CommentsPermalink





(e) Conforming Amendments-CommentsClose CommentsPermalink





(1) Subsection (d) of section 731 of the Internal Revenue Code of 1986 is amended by inserting ‘section 710(b)(4) (relating to distributions of partnership property),’ after ‘to the extent otherwise provided by’.CommentsClose CommentsPermalink





(2) Section 741 of such Code is amended by inserting ‘or section 710 (relating to special rules for partners providing investment management services to partnership)’ before the period at the end.CommentsClose CommentsPermalink





(3) The table of sections for part I of subchapter K of chapter 1 of such Code is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 710. Special rules for partners providing investment management services to partnership.’.CommentsClose CommentsPermalink





(f) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after XXX.CommentsClose CommentsPermalink





(2) PARTNERSHIP TAXABLE YEARS WHICH INCLUDE EFFECTIVE DATE- In applying section 710(a) of the Internal Revenue Code of 1986 (as added by this section) in the case of any partnership taxable year which includes XXX, the amount of the net income referred to in such section shall be treated as being the lesser of the net income for the entire partnership taxable year or the net income determined by only taking into account items attributable to the portion of the partnership taxable year which is after such date.CommentsClose CommentsPermalink





(3) DISPOSITIONS OF PARTNERSHIP INTERESTS- Section 710(b) of the Internal Revenue Code of 1986 (as added by this section) shall apply to dispositions and distributions after XXX.CommentsClose CommentsPermalink





(4) OTHER INCOME AND GAIN IN CONNECTION WITH INVESTMENT MANAGEMENT SERVICES- Section 710(d) of such Code (as added by this section) shall take effect on XXX.CommentsClose CommentsPermalink





(5) PUBLICLY TRADED PARTNERSHIPS- The amendment made by subsection (b) shall apply to taxable years beginning after XXX.CommentsClose CommentsPermalink

SEC. 3. APPLICATION TO PARTNERSHIP INTERESTS AND TAX SHARING AGREEMENTS OF RULE TREATING CERTAIN GAIN ON SALES BETWEEN RELATED PERSONS AS ORDINARY INCOME.

(a) Partnership Interests-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (a) of section 1239 of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





‘(a) Treatment of Gain as Ordinary Income- In the case of a sale or exchange of property, directly or indirectly, between related persons, any gain recognized to the transferor shall be treated as ordinary income if--CommentsClose CommentsPermalink





‘(1) such property is, in the hands of the transferee, of a character which is subject to the allowance for depreciation provided in section 167, orCommentsClose CommentsPermalink





‘(2) such property is an interest in a partnership, but only to the extent of gain attributable to unrealized appreciation in property which is of a character subject to the allowance for depreciation provided in section 167.’.CommentsClose CommentsPermalink





(2) TREATMENT OF AMORTIZABLE SECTION 197 INTANGIBLES AS DEPRECIABLE PROPERTY- Section 1239 of such Code is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(f) Treatment of Amortizable Section 197 Intangibles as Depreciable Property- For treatment of amortizable section 197 intangibles as depreciable property, see section 197(f)(7).’.CommentsClose CommentsPermalink





(b) Tax Sharing Agreements- Section 1239 of such Code (relating to gain from sale of depreciable property between certain related taxpayers) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(f) Application to Tax Sharing Agreements-CommentsClose CommentsPermalink





‘(1) IN GENERAL- If there is a tax sharing agreement with respect to any sale or exchange, the transferee and the transferor shall be treated as related persons for purposes of this section.CommentsClose CommentsPermalink





‘(2) TAX SHARING AGREEMENT- For purposes of this subsection, the term ‘tax sharing agreement’ means any agreement which provides for the payment to the transferor of any amount which is determined by reference to any portion of the tax benefit realized by the transferee with respect to the depreciation (or amortization) of the property transferred.’.CommentsClose CommentsPermalink





(c) Effective Date- The amendment made by this section shall apply to sales and exchanges after XXX.CommentsClose CommentsPermalink