### Question
How does NORMAL TAXES AND SURTAXES define investment partnership?


### Answer
Under *26 U.S.C. § 731*, **investment partnership** is defined as:

> any partnership which has never been engaged in a trade or business and substantially all of the assets (by value) of which have always consisted of—



(I) money,



(II) stock in a corporation,



(III) notes, bonds, debentures, or other evidences of indebtedness,



(IV) interest rate, currency, or equity notional principal contracts,



(V) foreign currencies,



(VI) interests in or derivative financial instruments (including options, forward or futures contracts, short positions, and similar financial instruments) in any asset described in any other subclause of this clause or in any commodity traded on or subject to the rules of a board of trade or commodity exchange,



(VII) other assets specified in regulations prescribed by the Secretary, or



(VIII) any combination of the foregoing

#### Citation:
  - *26 U.S.C. § 731*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter K-Partners and Partnerships > PART II-CONTRIBUTIONS, DISTRIBUTIONS, AND TRANSFERS > Subpart B-Distributions by a Partnership**

