Partnership and LLC Taxation

TOPICS / PASSTHROUGHS

May 1, 2023

Impact of business interest expense limitation regs. on partner redemptions

This item analyses two related examples of partner redemptions — with and without Sec. 163(j) basis adjustments — to highlight and clarify both the existing and new issues.

April 1, 2023

Nonresident alien partner’s gain on inventory items sourced to US

Nonresident alien’s Sec. 751 gain on sale of partnership interest was sourced to United States.

April 1, 2023

PTE deduction: Timing issues for accrual-method taxpayers

taxpayers and practitioners face uncertainty regarding the timing of the deduction provided for in Notice 2020-75.

April 1, 2023

Navigating partnership continuations

This item discusses the rules and authorities related to partnership continuations and when they may apply.

March 1, 2023

Current developments in partners and partnerships

This article reviews and analyzes recent rulings and guidance involving partnerships. The discussion covers developments in the taxation of partnerships and partners, debt and income allocations, distributions, and basis adjustments.

February 1, 2023

Notice listing syndicated conservation easement transactions held invalid

Notice identifying syndicated conservation easement transactions as listed transactions is held invalid.

February 1, 2023

Dividing an LLC

The form of an LLC division determines the tax treatment of any resulting LLCs.

January 23, 2023

FinCEN provides time estimates for compiling beneficial ownership details

FinCEN estimates that most companies will have a simple structure that will require 90 minutes per response, but complex entry filings will require much more time.

January 12, 2023

FinCEN proposes rules about access to beneficial ownership information

Proposed regulations under the Corporate Transparency Act address protocols for access to beneficial owner information by authorized recipients.

December 21, 2022

Prop. regs. to provide withholding relief on sales of foreign PTPs

The IRS announced that it will issue proposed regulations providing some relief to brokers that are required to withhold on the transfer of an interest in a publicly traded partnership (PTP) if the PTP is a foreign-traded entity.

December 12, 2022

Final regs. issued on centralized partnership audit regime

Final regulations, issued last week, except certain partnership-related items from the regime and provide alternative rules for their examination by the IRS, as well as provide rules for the calculation of imputed underpayments.

December 9, 2022

Domestic filing exception requirements modified in draft Scheds. K-2, K-3

Revised draft instructions for partnership and S corporation Schedules K-2 and K-3 contain significant changes to the requirements to qualify for the domestic filing exception for filing and furnishing the 2022 schedules.

November 1, 2022

Real property losses are capital, not ordinary

In Musselwhite, T.C. Memo. 2022-57, the Tax Court held that a taxpayer’s losses from the sale of four lots (real property) were ordinary in nature, as opposed to capital.

October 1, 2022

Target capital account allocations in 11 easy steps

This item discusses the complexities encountered when working with partnership allocations under a target capital structured operating agreement.

October 1, 2022

10 good reasons why LLCs should not elect to be S corporations

The owners of an LLC may be tempted to have the LLC elect to be treated as an S corporation for federal tax purposes. However, there are a host of issues that should be considered before making this move. In this article, the authors discuss 10 reasons why it may not be beneficial for an LLC to make an S corporation election.

October 1, 2022

Real estate partnership restructuring and potential disguised sales

With certain restructuring transactions, careful consideration is needed to prevent the transaction from being deemed a disguised sale.

October 1, 2022

Publicly traded partnerships: Investors’ tax considerations

Interests in publicly traded partnerships (PTPs) can be a valuable part of an investor’s portfolio, but because these investments are partnership interests, the tax reporting for them can be complex, and losses passed through by PTPs may be limited. This article discusses the tax compliance and loss limitation issues involved with, and tax planning considerations for, holding interests in PTPs.

October 1, 2022

Partnership examinations: Imputed underpayment modification

This item discusses how to request modification of an imputed underpayment.

October 1, 2022

Self-employment tax and LLCs

An LLC member’s distributive share of LLC income and loss from a trade or business is generally subject to self-employment tax, raising several issues around guaranteed payments, retirement payments, rental income, and members who are employees of the LLC.

September 1, 2022