1. Topics

S Corporation, Partnership & LLC Taxation

Target capital account allocations in 11 easy steps

This item discusses the complexities encountered when working with partnership allocations under a target capital structured operating agreement.

10 good reasons why LLCs should not elect to be S corporations

The owners of an LLC may be tempted to have the LLC elect to be treated as an S corporation for federal tax purposes. However, there are a host of issues that should be considered before making this move. In this article, the authors discuss 10 reasons why it may not be beneficial for an LLC to make an S corporation election.

Real estate partnership restructuring and potential disguised sales

With certain restructuring transactions, careful consideration is needed to prevent the transaction from being deemed a disguised sale.

Publicly traded partnerships: Investors’ tax considerations

Interests in publicly traded partnerships (PTPs) can be a valuable part of an investor’s portfolio, but because these investments are partnership interests, the tax reporting for them can be complex, and losses passed through by PTPs may be limited. This article discusses the tax compliance and loss limitation issues involved with, and tax planning considerations for, holding interests in PTPs.

Partnership examinations: Imputed underpayment modification

This item discusses how to request modification of an imputed underpayment.

Self-employment tax and LLCs

An LLC member’s distributive share of LLC income and loss from a trade or business is generally subject to self-employment tax, raising several issues around guaranteed payments, retirement payments, rental income, and members who are employees of the LLC.

Rolling over shares upon S corporation’s acquisition

This item discusses nonprorated S corporation rollovers and the unexpected tax consequences.

Questions to consider before electing into a PTE tax

Twenty-nine states have enacted a passthrough entity tax as a possible workaround to the federal state and local tax deduction cap.

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.

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.

Depreciation recapture in the partnership context

This item discusses how depreciation recapture applies in certain situations involving partnerships.

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.

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.

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.

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.

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.
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