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TITLE 26-INTERNAL REVENUE CODE (Aug. 16, 1954, ch. 736, 68A Stat. 239; Feb. 26, 1964, Pub. L. 88-272, title II, § 201(d)(7), 78 Stat. 32; Oct. 4, 1976, Pub. L. 94-455, title XIV, § 1402(b)(1)(L), title XIX, §§ 1901(b)(1)(I)(i), i), 1906(b)(13)(A), 90 Stat. 1732, 1791, 1834.) TAXABLE YEARS AFTER 1977 Subsec. (a)(1) and (2) of this section amended by Pub. L. 94-455, title XIV, § 1402(b)(2), Oct. 4, 1976, 90 Stat. 1732, effec- tive for taxable years beginning after Dec. 31, 1977, by substituting "1 year" for "9 months". AMZNDMENTS 1976-Subsec. (a)(1), (2). Pub. L. 94-455, § 1402(b)(1)(L), provided that "6 months" would be changed to "9 months" for taxable years beginning in 1977. Subsec. (a)(7). Pub. L. 94-455, §§ 1901(b)(1)(I)(i), 1906(b)(13)(A), redesignated former subsec. (a)(8) as (a)(7), and as so redesignated, struck out "or his dele- gate" following "Secretary". Former subsec. (a)(7), which related partially tax.exempt interest on obliga- tions of the United States or its instrumentalities, was struck out. Subsec. (a)(8). Pub. L. 94-455, § 1901(b)(1)(I)(i), rede- signated former subsec. (a)(9) as (a)(8). Former subsec. (a)(8) redesignated (a)(7). Subsec. (a)(9). Pub. L. 94-455, § 1901(b)(1)(I)(i), subsec. (a)(9) was redesignated (a)(8). Subsec. (b). Pub. L. 94-455, § 1901(b)(1)(I)(ii), substi- tuted "paragraphs (1) through (7)" for "paragraphs (1) through (8)". 1964-Subsee. (a)(5). Pub, L. 88-272 deleted "a credit under section 34," preceding "an exclusion". EFFrXCVE DATE OF 1976 AmENDMENT Section 1402(b)(1) of Pub. L. 94-455 provided in part that the substitution of "9 months" for "6 months" in subsec. (a)(1) and (2) of this section by section 1402(b)(1)(L) of Pub. L. 94-455 is effective with respect to taxable years beginning in 1977. Amendment of subsecs. (a)(7), (8), (9), (b) by section 1901(b)(1)(I)(i), (ii) of Pub. L. 94-455 effective for tax- able years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-272 applicable with re- spect to dividends received after Dec. 31, 1964, in tax- able years ending after such date, see section 201(e) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 37 of this title. CRoss RnnmcEs Computation of partnership income, see section 703 of this title. Partner's distributive share, see section 704 of this title. Self-employment income, see section 1402 of this title. Taxable years of partner and partnership, see sec- tion 706 of this title. SECTION REFEED TO IN OTHER SECTIONS This section is referred to in sections 170, 703, 704, 706, 1402 of this title; title 42 sections 403, 411. § 703. Partnership computations (a) Income and deductions The taxable income of a partnership shall be computed in the same manner as in the case of an individual except that- (1) the items described in section 702(a) shall be separately stated, and (2) the following deductions shall not be al- lowed to the partnership: (A) the standard deduction provided in section 141, (B) the deductions for personal exemp- tions provided in section 151, (C) the deduction for taxes provided in section 164(a) with respect to taxes, de- scribed in section 901, paid or accrued to foreign countries and to possessions of the United States, (D) the deduction for charitable contribu- tions provided in section 170, (E) the net operating loss deduction pro- vided in section 172, (F) the additional itemized deductions for individuals provided in part VII of sub- chapter B (see. 211 and following), and (G) the deduction for depletion under sec- tion 611 with respect to oil and gas wells. (b) Elections of the partnership Any election affecting the computation of taxable income derived from a partnership shall be made by the partnership, except that the election under section 901, relating to taxes of foreign countries and possessions of the United States, and any election under section 617 (relating to deduction and recapture of cer- tain mining exploration expenditures), under section 57(c) (relating to definition of net lease), or under section 163(d) (relating to limi- tation on interest on investment indebtedness), shall be made by each partner separately. (Aug. 16, 1954, ch. 736, 68A Stat. 240; Sept. 12, 1966, Pub. L. 89-570, § 2(b), 80 Stat. 764; Dec. 30, 1969, Pub. L. 91-172, title V, § 504(c)(3), 83 Stat. 633; Dec. 10, 1971, Pub. L. 92-178, title III, § 304(c), 85 Stat. 523; Mar. 29, 1975, Pub. L. 94- 12, title V, § 501(b)(3), 89 Stat. 53; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1901(b)(21)(F), title XXI, § 2115(c)(2), 90 Stat. 1798, 1909.) AMENDMENTs 1976-Subsec. (a)(2)(G). Pub. L. 94-455, § 2115(c)(2), substituted "wells" for "production subject to the pro- visions of section 613A(c)". Subsec. (b). Pub. L. 94-455, § 1901(b)(21)(F), struck out "under section 615 (relating to pre-1970 explora- tion expenditures)," following "of the United States, and any election". 1975-Subsec. (a)(2)(G). Pub. L. 94-12 added subpar. (0). 1971-Subsec. (b). Pub. L. 92-178 substituted "," for "or" after "(relating to pre-1970 exploration expendi- tures)" and inserted "under section 57(c) (relating to definition of net lease), or under section 163(d) (relat- ing to limitation on interest on investment indebted- ness)" after "(relating to deduction and recapture of certain mining exploration expenditures)". 1969-Subsec. (b). Pub. L. 91-172 substituted "(relat- ing to pre-1970 exploration expenditures) or under sec- tion 617 (relating to deduction and recapture of cer- tain mining exploration expenditures)" for "(relating to exploration expenditures) or under section 617 (re- lating to additional exploration expenditures in the case of domestic mining)". 1966-Subsec. (b). Pub. L. 89-570 provided for elec- tion under section 615 (relating to exploration expen- ditures) or under section 617 (relating to additional ex- ploration expenditures in the case of domestic mining). EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (b) by section 1901(b)(21)(F) of Pub. L. 94-455 effective for taxable years beginning Page 483 § 703