Payments made in liquidation of the interest of a retiring partner or a deceased partner shall, to the extent such payments (other than payments described in paragraph (2)) are determined, under regulations prescribed by the Secretary, to be made in exchange for the interest of such partner in partnership property, be considered as a distribution by the partnership and not as a distributive share or guaranteed payment under subsection (a).
26 U.S. Code § 736 - Payments to a retiring partner or a deceased partner’s successor in interest
1993—Subsec. (b)(3). Pub. L. 103–66, § 13262(a), added par. (3).
Subsec. (c). Pub. L. 103–66, § 13262(b)(2)(B), struck out heading and text of subsec. (c). Text read as follows: “For limitation on the tax attributable to certain gain connected with section 1248 stock, see section 751(e).”
1978—Subsec. (c). Pub. L. 95–600 added subsec. (c).