§ 1.741-1 Recognition and character of gain or loss on sale or exchange.
Amended 2002
- 2002 Pub. L. 107-147 Pub. L. 107–147 struck out “which have appreciated substantially in value” after “inventory items”.
Cases: Bernard D. Spector v. Commissioner, 641 F.2d 376 (5th Cir. 1981); Foxman v. Commissioner, 41 T.C. 535 (1964); Harris v. Commissioner, 61 T.C. 770 (1974)
Final rules 1
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).