CLOSING OF PARTNERSHIP TAXABLE YEAR WITH RESPECT TO DECEASED PARTNER, ETC.

SEC. 1246. CLOSING OF PARTNERSHIP TAXABLE YEAR WITH RESPECT TO DECEASED PARTNER, ETC. (a) General Rule.—Subparagraph (A) of section 706(c)(2) (relating to disposition of entire interest) is amended to read as follows: “(A) Disposition of entire interest.—The taxable year of a partnership shall close with respect to a partner whose entire interest in the partnership terminates (whether by reason of death, liquidation, or otherwise).”. (b) Clerical Amendment.—The paragraph heading for paragraph (2) of section 706(c) is amended to read as follows: “(2) Treatment of dispositions.—”. (c) Effective Date.—The amendments made by this section shall apply to partnership taxable years beginning after December 31, 1997.