S Corporation, Partnership & LLC Taxation

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.

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.

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).

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).

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.

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.

2018 partnership Schedule K-1 changes

This article discusses the new items practitioners should be aware of.

LLC owned solely by spouses: A partnership or a joint venture?

A timely election allows a married couple in business together to avoid the partnership filing rules.

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.

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.

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.

Traps for the unwary: Tax Cuts and Jobs Act changes

This article lists the changes together, along with some unexpected nuances.

Potential pitfalls of charitable contribution substantiation and reporting

Failure to properly complete all required fields on Form 8283, including the donor’s cost or other basis, could jeopardize the entire deduction with respect to the donated property.

No deduction for donated easements with flexible reserved building rights

A taxpayer’s conservation easement deductions were denied because the easements allowed for changes in the use of the property.