United States IRC sections
Statute section
IRC section 731
Extent of recognition of gain or loss on distribution
Country
United States
Section
731
Updated
2026-05-20
Operative text
Section 731 governs taxation of partnership distributions. Distributions are generally nontaxable up to the partner's outside basis; cash distributions in excess of basis are taxable as capital gain. Special rules apply to distributions of marketable securities under Section 731(c).
Cross-references
26 U.S.C. 73226 U.S.C. 752
Primary sources
- 26 U.S.C. section 731Verified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.