26 U.S.C. § 7703 — Determination of marital status

Page 4038 TITLE 26—INTERNAL REVENUE CODE § 7703 sions of section 321(f) of Pub. L. 104–191, set out as an Effective Date note below, applicable to such contracts, see section 327 of Pub. L. 104–191, set out as an Effective Date note under section 4980C of this title. EFFECTIVE DATE Pub. L. 104–191, title III, § 321(f), Aug. 21, 1996, 110 Stat. 2059, provided that: ‘‘(1) GENERAL EFFECTIVE DATE.— ‘‘(A) IN GENERAL.—Except as provided in subpara- graph (B), the amendments made by this section [en- acting this section and amending sections 106, 125, 807, and 4980B of this title, section 1167 of Title 29, Labor, and section 300bb–8 of Title 42, The Public Health and Welfare] shall apply to contracts issued after December 31, 1996. ‘‘(B) RESERVE METHOD.—The amendment made by subsection (b) [amending section 807 of this title] shall apply to contracts issued after December 31, 1997. ‘‘(2) CONTINUATION OF EXISTING POLICIES.—In the case of any contract issued before January 1, 1997, which met the long-term care insurance requirements of the State in which the contract was sitused [sic] at the time the contract was issued— ‘‘(A) such contract shall be treated for purposes of the Internal Revenue Code of 1986 as a qualified long- term care insurance contract (as defined in section 7702B(b) of such Code), and ‘‘(B) services provided under, or reimbursed by, such contract shall be treated for such purposes as qualified long-term care services (as defined in sec- tion 7702B(c) of such Code). In the case of an individual who is covered on December 31, 1996, under a State long-term care plan (as defined in section 7702B(f)(2) of such Code), the terms of such plan on such date shall be treated for purposes of the preceding sentence as a contract issued on such date which met the long-term care insurance requirements of such State. ‘‘(3) EXCHANGES OF EXISTING POLICIES.—If, after the date of enactment of this Act [Aug. 21, 1996] and before January 1, 1998, a contract providing for long-term care insurance coverage is exchanged solely for a qualified long-term care insurance contract (as defined in sec- tion 7702B(b) of such Code), no gain or loss shall be rec- ognized on the exchange. If, in addition to a qualified long-term care insurance contract, money or other property is received in the exchange, then any gain shall be recognized to the extent of the sum of the money and the fair market value of the other property received. For purposes of this paragraph, the cancella- tion of a contract providing for long-term care insur- ance coverage and reinvestment of the cancellation proceeds in a qualified long-term care insurance con- tract within 60 days thereafter shall be treated as an exchange. ‘‘(4) ISSUANCE OF CERTAIN RIDERS PERMITTED.—For purposes of applying sections 101(f), 7702, and 7702A of the Internal Revenue Code of 1986 to any contract— ‘‘(A) the issuance of a rider which is treated as a qualified long-term care insurance contract under section 7702B, and ‘‘(B) the addition of any provision required to con- form any other long-term care rider to be so treated, shall not be treated as a modification or material change of such contract. ‘‘(5) APPLICATION OF PER DIEM LIMITATION TO EXISTING CONTRACTS.—The amount of per diem payments made under a contract issued on or before July 31, 1996, with respect to an insured which are excludable from gross income by reason of section 7702B of the Internal Rev- enue Code of 1986 (as added by this section) shall not be reduced under subsection (d)(2)(B) thereof by reason of reimbursements received under a contract issued on or before such date. The preceding sentence shall cease to apply as of the date (after July 31, 1996) such contract is exchanged or there is any contract modification which results in an increase in the amount of such per diem payments or the amount of such reimburse- ments.’’ LONG-TERM CARE STUDY REQUEST Pub. L. 104–191, title III, § 321(g), Aug. 21, 1996, 110 Stat. 2060, related to a study of the marketing and other effects of per diem limits on certain types of long-term care policies, and provided that if the Na- tional Association of Insurance Commissioners agreed to the study request by Congress, the Association would report the results of the study not later than 2 years after accepting the request. § 7703. Determination of marital status (a) General rule For purposes of part V of subchapter B of chapter 1 and those provisions of this title which refer to this subsection— (1) the determination of whether an indi- vidual is married shall be made as of the close of his taxable year; except that if his spouse dies during his taxable year such determina- tion shall be made as of the time of such death; and (2) an individual legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as mar- ried. (b) Certain married individuals living apart For purposes of those provisions of this title which refer to this subsection, if— (1) an individual who is married (within the meaning of subsection (a)) and who files a sep- arate return maintains as his home a house- hold which constitutes for more than one-half of the taxable year the principal place of abode of a child (within the meaning of section 152(f)(1)) with respect to whom such individual is entitled to a deduction for the taxable year under section 151 (or would be so entitled but for section 152(e)), (2) such individual furnishes over one-half of the cost of maintaining such household during the taxable year, and (3) during the last 6 months of the taxable year, such individual’s spouse is not a member of such household, such individual shall not be considered as mar- ried. (Added Pub. L. 99–514, title XIII, § 1301(j)(2)(A), Oct. 22, 1986, 100 Stat. 2657; amended Pub. L. 100–647, title I, § 1018(u)(41), Nov. 10, 1988, 102 Stat. 3592; Pub. L. 108–311, title II, § 207(26), Oct. 4, 2004, 118 Stat. 1178.) Editorial Notes PRIOR PROVISIONS Provisions relating to determination of marital sta- tus were formerly contained in section 143 of this title, prior to enactment of this section by Pub. L. 99–514. AMENDMENTS 2004—Subsec. (b)(1). Pub. L. 108–311 substituted ‘‘152(f)(1)’’ for ‘‘151(c)(3)’’ and struck out ‘‘paragraph (2) or (4) of’’ before ‘‘section 152(e)),’’. 1988—Subsec. (b)(1). Pub. L. 100–647 substituted ‘‘sec- tion 151(c)(3)’’ for ‘‘section 151(e)(3)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–311 applicable to taxable years beginning after Dec. 31, 2004, see section 208 of Page 4039 TITLE 26—INTERNAL REVENUE CODE § 7704 Pub. L. 108–311, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title. EFFECTIVE DATE Section applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, see sections 1311 to 1318 of Pub. L. 99–514, set out as an Effective Date; Transi- tional Rules note under section 141 of this title. § 7704. Certain publicly traded partnerships treated as corporations (a) General rule For purposes of this title, except as provided in subsection (c), a publicly traded partnership shall be treated as a corporation. (b) Publicly traded partnership For purposes of this section, the term ‘‘pub- licly traded partnership’’ means any partnership if— (1) interests in such partnership are traded on an established securities market, or (2) interests in such partnership are readily tradable on a secondary market (or the sub- stantial equivalent thereof). (c) Exception for partnerships with passive-type income (1) In general Subsection (a) shall not apply to any pub- licly traded partnership for any taxable year if such partnership met the gross income re- quirements of paragraph (2) for such taxable year and each preceding taxable year begin- ning after December 31, 1987, during which the partnership (or any predecessor) was in exist- ence. For purposes of the preceding sentence, a partnership shall not be treated as being in existence during any period before the 1st tax- able year in which such partnership (or a pred- ecessor) was a publicly traded partnership. (2) Gross income requirements A partnership meets the gross income re- quirements of this paragraph for any taxable year if 90 percent or more of the gross income of such partnership for such taxable year con- sists of qualifying income. (3) Exception not to apply to certain partner- ships which could qualify as regulated in- vestment companies This subsection shall not apply to any part- nership which would be described in section 851(a) if such partnership were a domestic cor- poration. To the extent provided in regula- tions, the preceding sentence shall not apply to any partnership a principal activity of which is the buying and selling of commod- ities (not described in section 1221(a)(1)), or op- tions, futures, or forwards with respect to commodities. (d) Qualifying income For purposes of this section— (1) In general Except as otherwise provided in this sub- section, the term ‘‘qualifying income’’ means— (A) interest, (B) dividends, (C) real property rents, (D) gain from the sale or other disposition of real property (including property de- scribed in section 1221(a)(1)), (E) income and gains derived from the ex- ploration, development, mining or produc- tion, processing, refining, transportation (including pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resource (including fer- tilizer, geothermal energy, and timber), in- dustrial source carbon dioxide, or the trans- portation or storage of any fuel described in subsection (b), (c), (d), or (e) of section 6426, or any alcohol fuel defined in section 6426(b)(4)(A) or any biodiesel fuel as defined in section 40A(d)(1), (F) any gain from the sale or disposition of a capital asset (or property described in sec- tion 1231(b)) held for the production of in- come described in any of the foregoing sub- paragraphs of this paragraph, and (G) in the case of a partnership described in the second sentence of subsection (c)(3), income and gains from commodities (not de- scribed in section 1221(a)(1)) or futures, for- wards, and options with respect to commod- ities. For purposes of subparagraph (E), the term ‘‘mineral or natural resource’’ means any product of a character with respect to which a deduction for depletion is allowable under sec- tion 611; except that such term shall not in- clude any product described in subparagraph (A) or (B) of section 613(b)(7). (2) Certain interest not qualified Interest shall not be treated as qualifying income if— (A) such interest is derived in the conduct of a financial or insurance business, or (B) such interest would be excluded from the term ‘‘interest’’ under section 856(f). (3) Real property rent The term ‘‘real property rent’’ means amounts which would qualify as rent from real property under section 856(d) if— (A) such section were applied without re- gard to paragraph (2)(C) thereof (relating to independent contractor requirements), and (B) stock owned, directly or indirectly, by or for a partner would not be considered as owned under section 318(a)(3)(A) by the part- nership unless 5 percent or more (by value) of the interests in such partnership are owned, directly or indirectly, by or for such partner. (4) Certain income qualifying under regulated investment company or real estate trust provisions The term ‘‘qualifying income’’ also includes any income which would qualify under section 851(b)(2)(A) or 856(c)(2).