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What is an investment partnership?

A partnership is classified as an investment partnership if at least 90 percent of its assets are investments in stocks, bonds, options, and similar intangible assets, and at least 90 percent of its income is derived from that kind of asset.

Note: For tax years ending on or after December 31, 2023, 90 percent of an investment partnership’s income may also include the distributive share of partnership income from lower-tier partnership interests that meet the definition of qualifying investment securities. See IITA Section 1501(a)(11.5) for more information.

For more information about partnerships, see our Partnership tax information webpage and the Form IL-1065 instructions.

If you have additional inquiries, you may submit them on the Questions, Comments, or Requests form.