Page 89

131 STAT. 2141 PUBLIC LAW 115–97—DEC. 22, 2017 (1) SUBSECTION (a).—The amendments made by subsection (a) shall apply to sales, exchanges, and dispositions on or after November 27, 2017. (2) SUBSECTION (b).—The amendment made by subsection (b) shall apply to sales, exchanges, and dispositions after December 31, 2017. SEC. 13502. MODIFY DEFINITION OF SUBSTANTIAL BUILT-IN LOSS IN THE CASE OF TRANSFER OF PARTNERSHIP INTEREST. (a) IN GENERAL.—Paragraph (1) of section 743(d) is to read as follows: ‘‘(1) IN GENERAL.—For purposes of this section, a partner- ship has a substantial built-in loss with respect to a transfer of an interest in the partnership if— ‘‘(A) the partnership’s adjusted basis in the partnership property exceeds by more than $250,000 the fair market value of such property, or ‘‘(B) the transferee partner would be allocated a loss of more than $250,000 if the partnership assets were sold for cash equal to their fair market value immediately after such transfer.’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to transfers of partnership interests after December 31, 2017. SEC. 13503. CHARITABLE CONTRIBUTIONS AND FOREIGN TAXES TAKEN INTO ACCOUNT IN DETERMINING LIMITATION ON ALLOWANCE OF PARTNER’S SHARE OF LOSS. (a) IN GENERAL.—Subsection (d) of section 704 is amended— (1) by striking ‘‘A partner’s distributive share’’ and inserting the following: ‘‘(1) IN GENERAL.—A partner’s distributive share’’, (2) by striking ‘‘Any excess of such loss’’ and inserting the following: ‘‘(2) CARRYOVER.—Any excess of such loss’’, and (3) by adding at the end the following new paragraph: ‘‘(3) SPECIAL RULES.— ‘‘(A) IN GENERAL.—In determining the amount of any loss under paragraph (1), there shall be taken into account the partner’s distributive share of amounts described in paragraphs (4) and (6) of section 702(a). ‘‘(B) EXCEPTION.—In the case of a charitable contribu- tion of property whose fair market value exceeds its adjusted basis, subparagraph (A) shall not apply to the extent of the partner’s distributive share of such excess.’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to partnership taxable years beginning after December 31, 2017. SEC. 13504. REPEAL OF TECHNICAL TERMINATION OF PARTNERSHIPS. (a) IN GENERAL.—Paragraph (1) of section 708(b) is amended— (1) by striking ‘‘, or’’ at the end of subparagraph (A) and all that follows and inserting a period, and (2) by striking ‘‘only if—’’ and all that follows through ‘‘no part of any business’’ and inserting the following: ‘‘only if no part of any business’’. (b) CONFORMING AMENDMENT.— 26 USC 704 note. 26 USC 743 note. 26 USC 743. 26 USC 1446 note. 26 USC 864 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00089 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS