§ 59-1107. Income taxation. - North Carolina Statutes

§ 59‑1107.  Incometaxation.

A limited partnership, aforeign limited partnership authorized to transact business in this State, anda partner of one of these partnerships are subject to taxation under Article 4of Chapter 105 of the General Statutes in accordance with their classificationfor federal income tax purposes. Accordingly, if a limited partnership or aforeign limited partnership authorized to transact business in this State isclassified for federal income tax purposes as a C corporation as defined inG.S. 105‑131(b)(2) or an S corporation as defined in G.S. 105‑131(b)(8),the partnership and its partners are subject to tax under Article 4 of Chapter105 of the General Statutes to the same extent as a C corporation or an Scorporation, as the case may be, and its shareholders. If a limited partnershipor a foreign limited partnership authorized to transact business in this Stateis classified for federal income tax purposes as a partnership, the partnershipand its partners are subject to tax under Article 4 of Chapter 105 of theGeneral Statutes accordingly. If a limited partnership or a foreign limitedpartnership authorized to transact business in this State is classified forfederal income tax purposes as other than a corporation or a partnership, thepartnership and its partners are subject to tax under Article 4 of Chapter 105of the General Statutes in a manner consistent with that classification. Thissection does not require a limited partnership or a foreign limited partnershipto obtain an administrative ruling from the Internal Revenue Service on itsclassification under the Internal Revenue Code. (2001‑387, s. 150.)