### Question
How does Partners and Partnerships define inventory item?


### Answer
Under *26 U.S.C. § 724*, **inventory item** is defined as:

> given such term by section 751(d) (determined by treating any reference to the partnership as referring to the partner and by applying section 1231 without regard to any holding period therein provided).

#### Citation:
  - *26 U.S.C. § 724*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter K-Partners and Partnerships > PART II-CONTRIBUTIONS, DISTRIBUTIONS, AND TRANSFERS > Subpart A-Contributions to a Partnership**

