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26 U.S.C. 741: Recognition and character of gain or loss on sale or exchangeText contains those laws in effect through Public Law 119-120 (October 7, 2026).
From Title 26-INTERNAL REVENUE CODECHAPTER 1-NORMAL TAXES AND SURTAXES
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§741. Recognition and character of gain or loss on sale or exchange

In the case of a sale or exchange of an interest in a partnership, gain or loss shall be recognized to the transferor partner. Such gain or loss shall be considered as gain or loss from the sale or exchange of a capital asset, except as otherwise provided in section 751 (relating to unrealized receivables and inventory items).

( Aug. 16, 1954, ch. 736 , 68A Stat. 248 ; Pub. L. 107–147, title IV, § 417(12) , Mar. 9, 2002 , 116 Stat. 56 .)

Editorial Notes

Amendments

2002⁠—Pub. L. 107–147 struck out “which have appreciated substantially in value” after “inventory items”.