MODIFY DEFINITION OF SUBSTANTIAL BUILT-IN LOSS IN THE CASE OF TRANSFER OF PARTNERSHIP INTEREST.

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 partnership 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.