1. Topics

S Corporation, Partnership & LLC Taxation

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.

Deferred compensation not deductible in year basketball franchise sold

No deduction is allowed in the year of sale of a basketball team for deferred compensation owed to two of the team’s players.

Trusts as S corporation shareholders

Generally, a trust cannot hold stock of an S corporation; however, grantor trusts, testamentary trusts, voting trusts, ESBTs, and QSSTs are permissible S corporation shareholders (Sec. 1361(c)(2)).

Tax planning and considerations: S corporation targets

Approval of an S election by the IRS and/or a state jurisdiction does not mean that S corporation status remains safe and sound forever.

Trusts for holding S corporation interests: QSSTs vs. ESBTs

This article compares the relative advantages and disadvantages of a QSST versus an ESBT in estate planning.

Schedules K-2 and K-3 e-file capability postponed for S corporations

The IRS delays e-filing capability for schedules reporting S shareholders’ items of international tax relevance, earlier forecast for mid-June, to July 24.

More Schedule K-2 and K-3 FAQs posted

In eight new FAQs on its website, the IRS covers some special issues, including several that it says will be added to the forms’ instructions.

Making tax-free distributions to the extent of AAA

AAA and AE&P calculations are key to determining stock basis and, thus, the taxability of shareholder distributions.

Illegal tax shelter seller finds no shelter in stock forfeiture provision

S corporation stock was not subject to a substantial risk of forfeiture because the stock forfeiture provision was unlikely to be enforced.

BBA partnership audits show high no-change rate, TIGTA says

The Treasury Inspector General for Tax Administration recommends setting goals and benchmarks for the centralized audit regime under the Bipartisan Budget Act.

IRS waives estimated-tax penalties for farmers and fishermen

The IRS, citing earlier problems e-filing a new form reporting S corporation owners’ basis, has granted relief to certain farmers and fishermen who missed their March 1 filing deadline.

AICPA again asks IRS to delay K-2/K-3 reporting

Comment letters from the AICPA and state CPA societies also offer further recommendations.
Next
Previous