Question

Which IRC section(s) does Rev. Rul. 2001-29 interpret? (Hint: consult the official pronouncement of the IRS.)

a. Section 61
b. Section 162
c. Section 212
d. Section 6662

Answer 1

Rev. Rul. 2001-29 interprets IRC Section 61, explaining how a partner recognizes a distributive share of a partnership's income when the partnership agreement is silent on income allocation.

Step-by-step explanation:

Rev. Rul. 2001-29 interprets IRC Section 61 which pertains to the definition of gross income.

Specifically, the revenue ruling addresses the treatment of a partner's distributive share of a partnership's income when the partnership agreement does not specify the allocation of such income among the partners.

The ruling identifies the scenarios under which a partner must recognize the distributive share of partnership income for federal tax purposes, thus providing clarification on the general definition of gross income under Section 61 as it applies to partnerships and their partners.