§735 — Character of gain or loss on disposition of distributed property
15 cases·4 followed·1 distinguished·10 cited—27% support
Statute Text — 26 U.S.C. §735
Gain or loss on the disposition by a distributee partner of unrealized receivables (as defined in section 751(c)) distributed by a partnership, shall be considered as ordinary income or as ordinary loss, as the case may be.
Gain or loss on the sale or exchange by a distributee partner of inventory items (as defined in section 751(d)) distributed by a partnership shall, if sold or exchanged within 5 years from the date of the distribution, be considered as ordinary income or as ordinary loss, as the case may be.
In determining the period for which a partner has held property received in a distribution from a partnership (other than for purposes of subsection (a)(2)), there shall be included the holding period of the partnership, as determined under section 1223, with respect to such property.
For purposes of this section, section 751(d) (defining inventory item) shall be applied without regard to any holding period in section 1231(b).
If any property described in subsection (a) is disposed of in a nonrecognition transaction, the tax treatment which applies to such property under such subsection shall also apply to any substituted basis property resulting from such transaction. A similar rule shall also apply in the case of a series of nonrecognition transactions.
Subparagraph (A) shall not apply to any stock in a C corporation received in an exchange described in section 351.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.735-1 Character of gain or loss on disposition of distributed property
- Treas. Reg. §Treas. Reg. §1.735-1(a) Sale or exchange of distributed property—(1) Unrealized receivables.
- Treas. Reg. §Treas. Reg. §1.735-1(b) Holding period for distributed property.
- Treas. Reg. §Treas. Reg. §1.735-1(c) Effective date.
15 Citing Cases
ns, that “the value of the entire estate subject to administration in this state, less the value of property exempt from the claims of creditors, does not exceed $75,000 or that the decedent has been dead for more than 2 years.” Florida Probate Code § 735.201. Part I further provides that the “estate may be administered in the same manner as the administration of any other estate, or it may be administered as provided in this part.” Id. § 735.202. A petition for summary administration “may be fi
735.201(2) (West 2010). ¹°It is not clear from the record whether petitioner's probate attorney (continued...) - 13 - [*13] The settlement agreement required payment ofthe $110,000 within 30 days after Wachovia unfroze Mr. Ozimkoski, Sr.'s IRA. Petitioner's wage income for 2008 was less than $15,000. Although petitioner inherited real propert