General rule
Except as provided in subsection (b), no deduction shall be allowed under this chapter to the partnership or to any partner for any amounts paid or incurred to organize a partnership or to promote the sale of (or to sell) an interest in such partnership.
Deduction of organization fees
Allowance of deduction
Dispositions before close of amortization period
In any case in which a partnership is liquidated before the end of the period to which paragraph (1)(B) applies, any deferred expenses attributable to the partnership which were not allowed as a deduction by reason of this section may be deducted to the extent allowable under section 165.
Organizational expenses defined
Pub. L. 94–455, title II, § 213(b)(1)90 Stat. 1547Pub. L. 108–357, title VIII, § 902(c)118 Stat. 1651Pub. L. 109–135, title IV, § 403ll119 Stat. 2632(Added , , ; amended , , ; (), , .)
Editorial Notes
Amendments
Pub. L. 109–1352005—Subsec. (b)(1). substituted “partnership” for “taxpayer” in introductory provisions and before “shall be allowed” in subpar. (A).
Pub. L. 108–3572004—Subsec. (b). substituted “Deduction” for “Amortization” in heading, added par. (2), redesignated former par. (2) as (3), and amended heading and text of par. (1) generally. Prior to amendment, text of par. (1) read as follows: “Amounts paid or incurred to organize a partnership may, at the election of the partnership (made in accordance with regulations prescribed by the Secretary), be treated as deferred expenses. Such deferred expenses shall be allowed as a deduction ratably over such period of not less than 60 months as may be selected by the partnership (beginning with the month in which the partnership begins business), or if the partnership is liquidated before the end of such 60-month period, such deferred expenses (to the extent not deducted under this section) may be deducted to the extent provided in section 165.”
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Pub. L. 109–135Pub. L. 108–357section 403(nn) of Pub. L. 109–135section 26 of this titleAmendment by effective as if included in the provision of the American Jobs Creation Act of 2004, , to which such amendment relates, see , set out as a note under .
Effective Date of 2004 Amendment
Pub. L. 108–357section 902(d) of Pub. L. 108–357section 195 of this titleAmendment by applicable to amounts paid or incurred after , see , set out as a note under .
Effective Date
Pub. L. 94–455, title II, § 213(f)90 Stat. 1548Pub. L. 99–514, § 2100 Stat. 2095