S Corporations, Partnerships & LLCs - Contributions, Distributions & Basis

TOPICS / PASSTHROUGHS

January 1, 2018

IRS holds investment transaction is sale of refined coal tax credits

Investors in a partnership were not entitled to deduct credits because the investment transaction was structured solely to facilitate the purchase of the credits.

January 1, 2018

Tax Court holds microcaptive insurance company was not a bona fide insurer

Tax Court held that amounts passthrough business entities paid to a purported insurance company they
owned were not premiums paid for insurance contracts and not deductible.

January 1, 2018

Proposed regulations would allow Sec. 754 election without partner’s signature

To ease the regulatory burden on partnerships, the IRS announced that it is eliminating the requirement that partnership elections under Sec. 754 be signed by a partner.

November 1, 2017

Tax Court denies ordinary abandonment losses in taxpayers’ disposition of partnership interests

Tax Court affirmed the IRS’s decision to recharacterize loss of a partnership disposition from ordinary to capital when the taxpayers failed to provide evidence of abandonment.

October 11, 2017

IRS permits partnership basis election without partner’s signature

To ease the regulatory burden on partnerships, the IRS announced that it is eliminating the requirement that partnership elections under Sec. 754 be signed by a partner.

October 1, 2017

Practitioner’s incorrect change to passive status costly

A preparer’s improper change of status of income from active to passive is costly for taxpayers.

July 1, 2017

Temporary disguised-sale regulations raise concerns

Should the IRS consider recognizing a contributing
partner’s economic risk of loss when the regulations are finalized?

June 1, 2017

Recent regs. significantly change taxation of certain partnership contributions

Treasury and the IRS issued regulations that generally override nonrecognition treatment for certain contributions of property to partnerships.

June 1, 2017

The trust fund recovery penalty and LLCs

A responsible person may be subject to the TFRP if it can be shown he or she willfully failed to pay the trust fund taxes due.

May 1, 2017

Election to group activities for purposes of passive activity loss rules

The Tax Court held that a taxpayer had not elected to group two activities together under the passive
activity loss rules simply by treating both activities as nonpassive.

May 1, 2017

Sec. 743(b) adjustment complications in multitier partnerships

Sec. 743(b) adjustments are complex, and multitier partnership structures only exacerbate that complexity.

February 1, 2017

Current Developments in Partners and Partnerships

This article reviews and analyzes recent law changes as well as rulings and decisions involving partnerships.

November 1, 2016

Basis for “Bad Boys”

Including “bad boy” provisions in loan agreements is a common practice to protect the lender in the commercial real estate finance industry.

October 1, 2016

Advantages of an Optional Partnership Basis Adjustment

The optional basis adjustment election is an attempt to allow partners to correct certain discrepancies by affecting a transferee’s allocable basis in the underlying partnership assets.

September 1, 2016

How the COD Rules Apply to Grantor Trusts and Disregarded Entities

New regulations provide rules for determining
who is the “taxpayer” for purposes of applying the Sec. 108 discharge-of-indebtedness rules to a grantor trust or disregarded entity.

August 1, 2016

Recognizing When a Disguised Sale of Property Takes Place

Property transfers between a partner and a partnership are considered to be a taxable sale of the property under certain circumstances.

June 9, 2016

Final Regulations Clarify COD Rules for Grantor Trusts and Disregarded Entities

The IRS finalized regulations that provide rules for determining who is the “taxpayer” for purposes of applying the Sec. 108 discharge-of-indebtedness rules to a grantor trust or disregarded entity.

May 3, 2016

Regulations Clarify: Partners Cannot Be Employees

The IRS issued temporary regulations clarifying that partners in a partnership that owns a disregarded entity cannot be treated as employees of the disregarded entity.

February 1, 2016