Current developments in partners and partnerships
This article discusses developments in the taxation of partnerships and partners, debt and income allocations, distributions, and basis adjustments.
Contributions, Distributions & Basis
Accounting treatment for partnership syndication costs
This item discusses the tax basis and partnership capital accounting impacts of partner-incurred syndication costs.
Trade guaranteed payments for net profits to gain from QBI deduction
Partnerships making guaranteed payments may want to consider restructuring them as priority profit allocations.
With partnership debt, son does not have to step into father’s shoes
A taxpayer, who received interests in four partnerships from his father by gift or bequest, did not step into his father’s shoes with respect to interest on certain partnership loans,
Professional sports franchise did not receive income from ‘membership’ fees
The IRS agreed with the team’s position that the amounts received for the memberships do not constitute income because the team is obligated to repay the money to the “members.”
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.
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.
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.
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.
Deduction allowed for partnership-related debt
A note contributed to a partnership by an individual in exchange for an interest in the partnership was a bona fide debt.
Revisiting at-risk rules for partnerships
Treasury never finalized the bulk of the regulations implementing Sec. 465, so reliance on proposed regulations issued in 1979 is the norm.
Current developments in S corporations
This update on recent developments in taxation relating to S corporations includes cases and rulings on eligible shareholders, electing small business trusts, inadvertent S election terminations, and other issues, as well as changes made by the TCJA.
Current developments in partners and partnerships
This article reviews and analyzes recent rulings and decisions involving partnerships and discusses developments in partnership formation, debt and income allocations, distributions, and basis adjustments.
IRS takes narrow view of aggregation under the at-risk rules
The IRS concluded that a taxpayer was not permitted to aggregate the S corporations with the partnership for the purpose of applying the at-risk rules of Sec. 465.
Capital contribution of reduced basis S corporation debt
The passthrough of S corporation losses to the extent of the shareholder’s basis in his or her stock and debt can be beneficial, but the resulting reduced basis debt may lead to taxable income on repayment of the debt.
Amended returns satisfy statement-of-inconsistency requirement
A taxpayer’s amended returns sufficiently apprised the IRS of inconsistencies between the amended returns and the returns filed by the bankruptcy trustee of his wholly owned S corporation.
Using R&D credits to reduce payroll taxes: An overlooked opportunity for startups
This article discusses who qualifies to take the credit, how to make the election, the calculation and allocation of the credit, and how to report it.
Loan guarantee does not increase S corp. shareholder’s debt basis
This item discusses how a back-to-back loan is a viable option for shareholders who want to increase their debt basis in an S corporation.
Revisiting the application of Sec. 280G on partnerships and LLCs
Depending on how a taxpayer’s ownership is structured, the sale of a partnership interest can have a Sec. 280G impact on partners or members that are C corporations.
Lender Management LLC and its impact on investment partnerships
Lender Management contended that its activities met the test for an active trade or business under guidelines.
