Partnership terminations triggered by a change in form
Consider the scenarios that could cause a partnership to terminate so appropriate steps can be taken to properly account for the business’s status change.
Passthroughs
New withholding regime on transfers of partnership interests
This discussion focuses on the withholding regime under the proposed regulations applicable to non-publicly traded partnerships and highlights a number of compliance and practical implications.
Phantom equity vs. profit interests: Strategic considerations
A practitioner who is a true trusted business adviser should consider what the business owner wants to achieve when making this decision.
Sec. 1446(f) proposed regs.: Withholding on transfers of partnership interests
Partnerships will need to establish procedures to deal with secondary withholding in the event that transferees do not withhold or collect the appropriate documentation.
Deducting losses after an S corporation terminates
A special relief provision allows unused losses caused by a lack of basis to be deducted by an S corporation shareholder under certain conditions for one year (or more) during the S corporation’s post-termination transition period.
Sec. 199A dividends paid by a RIC with interest in REITs and PTPs
The proposed regulations provided much-anticipated rules for RICs with REIT income for purposes of Sec. 199A.
Risks and opportunities for third-party partnership representatives
The BBA rules that allow a third party to act on behalf of the partnership, as well as the change in IRS adjustments being assessed at the partnership level, bring significant new challenges for tax practitioners.
Impact of S corp. shareholder agreements in M&A transactions
Shareholders and their advisers should be prepared to verify the validity of the S election when the decision is made to begin marketing the company for sale.
IRS permits certain partnerships to file superseding partnership returns
The IRS is permitting certain partnerships that timely filed their tax returns for the 2018 tax year an extension of time to file superseding returns and Schedules K-1 for their partners.
BBA audit regime affects buyers and sellers of partnership interests
This item provides a brief overview of the BBA audit regime and discusses some of the practical considerations that partners may want to keep in mind when buying or selling partnership interests.
IRS proposes regs. on withholding on transfers of partnership interests
The IRS issued proposed regulations on the operation of new Sec. 1446(f), which requires withholding on the transfer of a partnership interest described in Sec. 864(c)(8) (gain or loss of foreign persons from the sale or exchange of certain partnership interests).
Conversion of a C corporation to an LLC
Converting a C corporation to a limited liability company can sometimes be beneficial, but the tax consequences must be planned for.
Distribution by former S corporation is part dividend
The IRS ruled that a distribution to the sole shareholder of a C corporation was partly a recovery of the former S corporation’s accumulated adjustments account (AAA) and a taxable dividend for the remaining distribution.
Proposed rules would govern withholding on transfers of partnership interests
The IRS issued proposed regulations on the operation of new Sec. 1446(f), which requires withholding on the transfer of a partnership interest described in Sec. 864(c)(8) (gain or loss of foreign persons from the sale or exchange of certain partnership interests).
Sec. 199A and the aggregation of trades or businesses
Aggregation may allow a taxpayer to claim a greater QBI deduction than if the wages and capital limitation was applied separately.
IRS finalizes centralized partnership audit rules
The IRS issued final regulations on the centralized partnership audit regime, which generally assesses tax at the partnership level.
2018 partnership Schedule K-1 changes
This article discusses the new items practitioners should be aware of.
Publicly traded partnerships: Tax treatment of investors
This article explains the tax implications of owning and selling an interest in a publicly traded partnership treated as a partnership and the tax reporting and compliance challenges that an investor in a PTP may face.
Nonresident alien as an indirect S corp. shareholder
The TCJA fundamentally relaxed the rules on S corporation ownership by allowing nonresident aliens to be potential current beneficiaries of ESBTs and, therefore, indirect corporation shareholders.
Terminating an S election by revocation
Revoking an S election may be the best course in some cases, but timely filing and shareholder consent are required.
