---
title: O.C.G.A. § 48-7-24. Nonresident members of resident partnerships; resident members of nonresident partnerships; profits; distributive shares; taxability.
collection: code
id: 48-7-24
cite_as: O.C.G.A. § 48-7-24 (2025)
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date: 2025
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publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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heading_path: REVENUE AND TAXATION / INCOME TAXES / IMPOSITION, RATE, COMPUTATION, EXEMPTIONS, AND CREDITS
---

# O.C.G.A. § 48-7-24. Nonresident members of resident partnerships; resident members of nonresident partnerships; profits; distributive shares; taxability.

(a) When one or more of the individual members of a partnership doing business in this state are nonresidents of this state, the nonresidents shall be taxable on their share of the net profits of the partnership.

(b) When one or more of the individual members of a partnership doing business outside this state are residents of this state, the residents shall include in their individual returns their distributable share, whether distributed or not, of the net income of the partnership for the taxable year.

(c) Notwithstanding any other provision of this chapter to the contrary, the distributive share of a nonresident member of a resident limited partnership or other similar nontaxable entity which derives income exclusively from buying, selling, dealing in, and holding securities on its own behalf and not as a broker shall not constitute taxable income under this chapter. For purposes of this subsection, a resident limited partnership or similar nontaxable entity shall not include a family limited partnership or similar nontaxable entity the majority interest of which is owned by one or more natural or naturalized citizens related to each other within the fourth degree of reckoning according to the laws of descent and distribution. This subsection shall not apply to a person that participates in the management of the resident limited partnership or other similar nontaxable entity or that is engaged in a unitary business with another person that participates in the management of the resident limited partnership or other similar nontaxable entity.

(d) This Code section shall not apply to the partners of an electing partnership as defined in paragraph (1) of subsection (b) of Code Section 48-7-23.

## History

Ga. L. 1931, Ex. Sess., p. 24, § 19; Code 1933, § 92-3117; Ga. L. 1937, p. 109, § 10; Ga. L. 1937-38, Ex. Sess., p. 150, § 6; Code 1933, § 91A-3615, enacted by Ga. L. 1978, p. 309, § 2; Ga. L. 1987, p. 191, § 2; Ga. L. 1997, p. 450, § 2; Ga. L. 2005, p. 159, § 12/HB 488; Ga. L. 2021, p. 277, § 3/HB 149; Ga. L. 2022, p. 352, § 48/HB 1428.

## Cross References

Partnerships generally, § 14-8-1 et seq.

## Editor's Notes

Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, provides that this Act is applicable to taxable years ending on or after March 11, 1987, and that a taxpayer with a taxable year ending on or after January 1, 1987, and before March 11, 1987, may elect to have the provisions of that Act apply.

Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by that Act.

Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that provisions of the federal Tax Reform Act of 1986 and of the Internal Revenue Code of 1986 which as of January 1, 1987, were not yet effective become effective for purposes of Georgia taxation on the same dates as they become effective for federal purposes.

Ga. L. 2005, p. 159, § 1/HB 488, not codified by the General Assembly, provides that: “This Act shall be known and may be cited as the ‘State and Local Tax Revision Act of 2005.’”

Ga. L. 2021, p. 277, § 7/HB 149, not codified by the General Assembly, provides, in part, that: “This Act shall be applicable to all taxable years beginning on or after January 1, 2022.”

## Law Reviews

For article commenting on the 1997 amendment of this Code section, see 14 Ga. St. U.L. Rev. 271 (1997).

For article with annual survey on state and local taxation, see 73 Mercer L. Rev. 231 (2021).

For annual survey on state and local taxation, see 3 Mercer L. Rev. 231 (2022).

## Amendments

The 2022 amendment, effective May 2, 2022, part of an Act to revise, modernize, and correct the Code, substituted “This Code section” for “This Code Section” at the beginning of subsection (d).