Regulations streamline partnership basis elections
Final regulations issued by the IRS and Treasury allow a Sec. 754 election statement to be submitted without a partner’s signature.
S Corporation, Partnership & LLC Taxation
Meaning of ‘filed’ defined for purposes of delinquent partnership returns
Delinquent partnership returns are ‘filed’ when they are delivered by the requested method to and received by an IRS official authorized to receive such returns;
State PTE elections: A big picture perspective
Practitioners may face a difficult analysis in helping their clients understand their possible PTE election opportunities.
Guaranteed payments vs. distributive share of income
For certain partners, the presumed preference for receiving a distributive share of income (including a priority profit allocation) may need further evaluation to determine how it coordinates with various international tax provisions.
Avoiding inadvertent termination of an S election
A number of disqualifying events can terminate a corporation’s S status, and not all of those events are listed in the statute or immediately obvious.
Depreciation recapture in the partnership context
This item discusses how depreciation recapture applies in certain situations involving partnerships.
Nonliquidating distributions: Ways to determine basis
This item considers to what extent taxpayers may be able to apportion basis instead under Sec. 704(c) principles.
A practical guide to partnership division planning
This item provides an overview of the division rules and touches on some key issues to consider when a transaction involves a partnership division.
Current developments in S corporations
The AICPA S Corporation Taxation Technical Resource Panel summarizes recent developments.
Payments to LLC members for services
When LLC members receive payments for services performed for the LLC, the tax treatment depends on whether the member is performing the services in the capacity as a member.
Tennessee taxation of passthrough entities
An insufficient understanding of the rules can be dangerous to taxpayers when determining which entity has a filing responsibility in Tennessee.
Tax planning and considerations: S corporation targets
Approval of an S election by the IRS and/or a state jurisdiction does not mean that S corporation status remains safe and sound forever.
State tax considerations around the sale of a partnership interest
This item discusses how owners selling partnership interests should address which states may attempt to tax the entire gain, how taxation of the gain may be divided among the states where the partnership does business, compliance considerations, and technical developments and trends that may affect the transaction.
Trusts as S corporation shareholders
Generally, a trust cannot hold stock of an S corporation; however, grantor trusts, testamentary trusts, voting trusts, ESBTs, and QSSTs are permissible S corporation shareholders (Sec. 1361(c)(2)).
Deferred compensation not deductible in year basketball franchise sold
No deduction is allowed in the year of sale of a basketball team for deferred compensation owed to two of the team’s players.
Trusts for holding S corporation interests: QSSTs vs. ESBTs
This article compares the relative advantages and disadvantages of a QSST versus an ESBT in estate planning.
Schedules K-2 and K-3 e-file capability postponed for S corporations
The IRS delays e-filing capability for schedules reporting S shareholders’ items of international tax relevance, earlier forecast for mid-June, to July 24.
More Schedule K-2 and K-3 FAQs posted
In eight new FAQs on its website, the IRS covers some special issues, including several that it says will be added to the forms’ instructions.
Making tax-free distributions to the extent of AAA
AAA and AE&P calculations are key to determining stock basis and, thus, the taxability of shareholder distributions.
Illegal tax shelter seller finds no shelter in stock forfeiture provision
S corporation stock was not subject to a substantial risk of forfeiture because the stock forfeiture provision was unlikely to be enforced.
