LLCs and LLPs

LLC Distributions of Contributed Property

An LLC member who makes a contribution to the LLC of property with an FMV different from its basis may be required to recognize gain or loss upon a subsequent distribution of the contributed property to another member.

Determining the LLC’s Required Year

An LLC taxed as a C corporation can choose any year end as the tax year end; if an LLC is classified as a partnership for federal income tax purposes, however, its tax year is governed by Sec. 706(b). 

Separately Identifiable Intangible Assets: Tax Opportunities and Traps

Treating self-created customer-based intangibles as assets separate from goodwill can result in more favorable tax treatment for these intangibles. This article examines the rules regarding the separate treatment of self-created customer-based intangibles and the situations in which separate treatment may be beneficial.

When Is a U.S. LLC a Partnership for U.S. and U.K. Tax Purposes?

U.S. LLCs have become the preferred business entity in many situations because their members get both legal liability protection while being taxed in the United States as a partnership. This item examines how profits and losses of a U.S. LLC will be taxed on a U.K. resident’s U.K. tax return.

Partners’ Limited Liability and Self-Employment Tax

The decision in Renkemeyer, Campbell & Weaver, LLP, signals that special allocations not supported by a written partnership agreement and without substantial economic effect will not withstand an IRS challenge and that classification of an interest in a partnership as a limited partner interest should not be predicated simply on a partner’s enjoyment of limited liability.

LLC Member Debt: Recourse or Nonrecourse?

How should deductions be allocated that are funded by a general obligation of an LLC if the obligation is guaranteed by or borrowed from a member and is recourse debt under Sec. 1001?

The Practitioner’s Role in Reviewing LLC Allocations

Sec. 704(a) provides that partnership allocations are determined in accordance with the partnership agreement, but an LLC classified as a partnership does not have a partnership agreement. This item discusses how such LLC allocations can be made.

Taxation of LLC Members as General Partners

In recent decisions, courts have held that interests in an LLC that elects to be treated as a partnership for federal income tax purposes should not be treated as limited partnership interests per se.

Investing in Canada Through an LLC

This item examines the Canadian Tax Court’s opinion in TD Securities (USA) LLC as well as how it will affect the amendments under the Fifth Protocol to the Canada-U.S. treaty.

Newsletter Articles

SPONSORED REPORT

Tax reform changes are now in effect

With all the recent tax law changes, this year it’s more important than ever to make sure your clients’ tax situations are squared away before year end. This report provides necessary guidance to ensure 2019 starts without a hitch.

DEDUCTIONS

Understanding the new Sec. 199A business income deduction

The new deduction allows certain business owners to keep pace with the significant corporate tax cut provided by the Tax Cuts and Jobs Act.