101 STAT. 1330-406
PUBLIC LAW 100-203—DEC. 22, 1987
"(k) SEPARATE APPLICATION OF SECTION IN CASE OF PUBLICLY TRADED PARTNERSHIPS.—
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"(1) IN GENERAL.—This section shall be applied separately with respect to items attributable to each publicly traded partnership (and subsection (i) shall not apply with respect to items attributable to any such partnership). The preceding sentence shall not apply to any credit determined under section 42, or any rehabilitation investment credit (within the meaning of section 48(o)), attributable to a publicly traded partnership to " the extent the amount of any such credits exceeds the regular '" tax liability attributable to income from such partnership. ^ "(2) PUBLICLY TRADED PARTNERSHIP.—For purposes of this sec'^ tion, the term 'publicly traded partnership' means any partner"•* ship if— "(A) interests in such partnership are traded on an estab* lished securities market, or "(B) interests in such partnership are readily tradable on a secondary market (or the substantial equivalent thereof)." (b) CONFORMING AMENDMENTS.—Paragraph (3) of section 58(b) and
26 USC 58 note.
subparagraph (E) of section 163(d)(4) are each amended by striking out "469(1)" and inserting in lieu thereof "469(m)". (c) EFFECTIVE DATE.—The amendments made by this section shall take effect as if included in the amendments made by section 501 of the Tax Reform Act of 1986. SEC. 10213. TREATMENT OF PUBLICLY TRADED PARTNERSHIPS FOR UNRELATED BUSINESS TAX. (a) GENERAL RULE.—Subsection (c) of section 512 (relating to
special rules for partnerships) is amended to read as follows: "(c) SPECIAL RULES FOR PARTNERSHIPS.—
"(1) IN GENERAL.—If a trade or business regularly carried on by a partnership of which an organization is a member is an jA^,. unrelated trade or business with respect to such organization, such organization in computing its unrelated business taxable income shall, subject to the exceptions, additions, and limitations contained in subsection (b), include its share (whether or not distributed) of the gross income of the partnership from such unrelated trade or business and its share of the partnership deductions directly connected with such gross income. '^,^
"(2) SPECIAL RULE FOR PUBLICLY TRADED PARTNERSHIPS.—Not-
, withstanding any other provision of this section— "(A) any organization's share (whether or not distributed) of the gross income of a publicly traded partnership (as defined in section 469(k)(2)) shall be treated as gross income derived from an unrelated trade or business, and "(B) such organization's share of the partnership deductions shall be allowed in computing unrelated business taxable income. "(3) SPECIAL RULE WHERE PARTNERSHIP YEAR IS DIFFERENT FROM ORGANIZATION'S YEAR.—If the taxable year of the organiza-
• '. tion is different from that of the partnership, the amounts to be included or deducted in computing the unrelated business taxable income under paragraph (1) or (2) shall be based upon the income and deductions of the partnership for any taxable year \ of the partnership ending within or with the taxable year of the organization."
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