Contributions, Distributions & Basis

Deduction limitations of Sec. 162(m) to compensation paid by partnerships in Up-C and UPREIT structures

Proposed regulations change the paradigm for the tax treatment of compensation paid by a partnership situated below a publicly held corporation in an Up-C or UPREIT structure.

Current developments in S corporations

This annual update on S corporations covers cases, regulations, and IRS rulings that have been issued in the last year, including the rules for eligible terminated S corporations.

General partner of private investment fund: In a trade or business?

This item discusses the authority to consider when determining whether the general partner of an investment fund is engaged in a Sec. 162 trade or business.

Accounting treatment for partnership syndication costs

This item discusses the tax basis and partnership capital accounting impacts of partner-incurred syndication costs.

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.

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.

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.”

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,

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.

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.

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.

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.

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.

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.
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