26 U.S. Code § 741 - Recognition and character of gain or loss on sale or exchange

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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.)

2002—Pub. L. 107–147struck out “which have appreciated substantially in value” after “inventory items”.


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