26 U.S.C. § 741
Section 741 · Recognition and character of gain or loss on sale or exchange
Amended 2 times on record
Applied in 50 court decisions — leading case Commissioner v. Tufts (1983)
Most recently applied in Indu Rawat v. Cmsnr. IRS (July 2024)
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
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).
Editorial notes U.S. Code · Office of the Law Revision Counsel
Amendments
2002—Pub. L. 107–147 struck out “which have appreciated substantially in value” after “inventory items”.