PUBLIC LAW 94-455—OCT. 4, 1976
9 0 STAT. 1547
(2) EFFECTIVE DATE.—The amendment made by this subsection 26 USC 1245 applies to transfers of player contracts in connection with any note, sale or exchange of a franchise after December 31, 1975. SEC. 213. CERTAIN PARTNERSHIP PROVISIONS. (a) DOLLAR L I M I T A T I O N W I T H EESPECT TO ADDITIONAL F I R S T - Y E A R
DEPRECIATION ALLOWANCE.—Subsection (d) of section 179 (relating to 26 USC 179. additional first-year depreciation allowance for small business) is amended by redesignating paragraph (8) as paragraph (9) and by inserting after paragraph (7) the following new paragraph: " (8) DOLLAR LIMITATION I N CASE OF PARTNERSHIPS.—In the case
of a partnership, the dollar limitation contained i n the first sentence of subsection (b) shall apply with respect to the partnership and with respect to each partner." (b) CLARIFICATION OF TREATMENT OF PARTNERSHIP SYNDICATION FEES, ETC.—
(1) IN GENERAL.—Part I of subchapter K of chapter 1 (relating to determination of tax liability) is amended by a d d i n g a t the end thereof the following new section: "SEC. 709. TREATMENT OF ORGANIZATION AND SYNDICATION FEES. 26 USC 709. " (a) GENERAL RULE. — E x c e p t as provided i n subsection (b), n o deduction shall be allowed under this chapter to the partnership or to any part n e r for any amounts paid or incurred to organize a partnership or to promote the sale of (or to sell) a n interest in such partnership. " (b) AMORTIZATION OF ORGANIZATION F E E S. —
" (1) DEDUCTION.—Amounts paid or incurred to organize a partnership may, a t the election of the partnership (made in accordance with regulations prescribed by the Secretary), be treated as deferred expenses. Such deferred expenses shall be allowed as a deduction ratably over such period of not less than 60 months as may be selected by the partnership (beginning with the month in which the partnership begins business), or if the partnership is liquidated before the end of such 60-month period, such deferred expenses (to the extent not deducted under this section) may be deducted to the extent provided in section 165. " (2) ORGANIZATIONAL EXPENSES DEFINED.—The organizational
expenses to which paragraph (1) applies, are expenditures which— " (A) are incident to the creation of the partnership; " (B) are chargeable to capital account; and " (C) are of a character which, if expended incident to the creation of a partnership h a v i n g an ascertainable life, would be amortized over such life." (2) CLERICAL AMENDMENT.—The table of sections for such part is amended by a d d i n g at the end thereof the following: "Sec. 709. Treatment of organization and syndication fees." (3) DETERMINATION
OF AMOUNTS
CHARGEABLE
TO CAPITAL
ACCOUNT.—Section 707(c) (relating to guaranteed payments) is 26 USC 707. amended by striking out " and section 1 6 2 (a) " and inserting in lieu thereof "and, subject to section 263, for purposes of section 162(a)". (c) I T E M S M U S T B E ALLOCATED TO PORTION OF YEAR PARTNER H E L D INTEREST.—
(1) IN GENERAL.—Subparagraph (B) of section 7 0 6 (c)(2) (relating to disposition of less than entire interest) is amended
26 USC 706.
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