The taxable income of an electing large partnership shall be computed in the same manner as in the case of an individual except that—
(A) the items described in section 772(a) shall be separately stated, and
(B) the modifications of subsection (b) shall apply.
All elections affecting the computation of the taxable income of an electing large partnership or the computation of any credit of an electing large partnership shall be made by the partnership; except that the election under section 901, and any election under section 108, shall be made by each partner separately.
Except as provided in subparagraph (B), all limitations and other provisions affecting the computation of the taxable income of an electing large partnership or the computation of any credit of an electing large partnership shall be applied at the partnership level (and not at the partner level).
The following provisions shall be applied at the partner level (and not at the partnership level):
(i) Section 68 (relating to overall limitation on itemized deductions).
(ii) Sections 49 and 465 (relating to at risk limitations).
(iii) Section 469 (relating to limitation on passive activity losses and credits).
(iv) Any other provision specified in regulations.
Paragraphs (2) and (3) shall apply notwithstanding any other provision of this chapter other than this part.
In determining the taxable income of an electing large partnership—
The following deductions shall not be allowed:
(A) The deduction for personal exemptions provided in section 151.
(B) The net operating loss deduction provided in section 172.
(C) The additional itemized deductions for individuals provided in part VII of subchapter B (other than section 212 thereof).
In determining the amount allowable under section 170, the limitation of section 170(b)(2) shall apply.
In lieu of applying section 67, 70 percent of the amount of the miscellaneous itemized deductions shall be disallowed.
If an electing large partnership has income from the discharge of any indebtedness—
(1) such income shall be excluded in determining the amounts referred to in section 772(a), and
(2) in determining the income tax of any partner of such partnership—
(A) such income shall be treated as an item required to be separately taken into account under section 772(a), and
(B) the provisions of section 108 shall be applied without regard to this part.
(Added Pub. L. 105–34, title XII, §1221(a), Aug. 5, 1997, 111 Stat. 1004.)
Sections: Previous 752 753 754 755 761 771 772 773 774 775 776 777 801 803 804 Next
Last modified: October 26, 2015