Internal Revenue Code · 26 U.S.C.
§ 741. Recognition and character of gain or loss on sale or exchange
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 741
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- March 9, 2002 by Pub. L. 107–147
- Length
- 78 words · about 1 min to read
- Cross-references
- cites 1; cited by 1 Code section and 5 other regulations
- Regulations
- 1 issued under this section
In the case of a sale or exchange of an interest in a partnership, gain or loss shall be recognized to the transferor partner. Such gain or loss shall be considered as gain or loss from the sale or exchange of a capital asset, except as otherwise provided in section 751 (relating to unrealized receivables and inventory items).
(Aug. 16, 1954, ch. 736, 68A Stat. 248; Pub. L. 107–147, title IV, § 417(12), Mar. 9, 2002, 116 Stat. 56.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 741
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 1 other section
Cited by 1 Code section
Cited in 5 regulations not issued under it
- § 1.1(h)-1 Capital gains look-through rule for sales or exchanges of interests in a partnership, S corporation, or trust.
- § 1.163(j)-6 Application of the section 163(j) limitation to partnerships and subchapter S corporations.
- § 1.708-1 Continuation of partnership.
- § 1.864(c)(8)-1 Gain or loss by foreign persons on the disposition of certain partnership interests.
- § 1.6011-4 Requirement of statement disclosing participation in certain transactions by taxpayers.
Amendment history
From the source credit and the official notes, newest first.
- Enacted by Pub. L. 107–147
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter K Partners and Partnerships
- Part II CONTRIBUTIONS, DISTRIBUTIONS, AND TRANSFERS
- Subpart C Transfers of Interests in a Partnership
Nearby sections
- § 741 Recognition and character of gain or loss on sale or exchange
- § 742 Basis of transferee partner’s interest
- § 743 Special rules where section 754 election or substantial built-in loss
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2002—Pub. L. 107–147 struck out “which have appreciated substantially in value” after “inventory items”.