TaxGuided
United States IRC sections

Statute section

IRC section 704

Partner's distributive share

Country

United States

Section

704

Updated

2026-05-20

Operative text

Section 704 governs how partnership items are allocated among partners. Section 704(b) allows partners to allocate items under the partnership agreement provided the allocations have substantial economic effect, and Section 704(c) requires special allocations for contributed property to account for built-in gains and losses.

Cross-references

26 U.S.C. 75226 U.S.C. 754

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