Partnership income taxation / by William H. Lyons, James R. Repetti.
2011
KF6452 .G86 2011 (Map It)
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Details
Author
Title
Partnership income taxation / by William H. Lyons, James R. Repetti.
Published
New York : Foundation Press Thomson/West, 2011.
Call Number
KF6452 .G86 2011
Edition
Fifth edition.
ISBN
9781599413822 (pbk.)
1599413825 (pbk.)
1599413825 (pbk.)
Description
xi, 235 pages ; 24 cm.
System Control No.
(OCoLC)730054966
Note
Revised edition of: Partnership income taxation / by Alan Gunn, James R. Repetti. 4th edition 2005.
Bibliography, etc. Note
Includes bibliographical references and index.
Record Appears in
Gift
Gift of Prof. Marvin A. Chirelstein
Gift
The Arthur W. Diamond Law Library
Gift of Prof. Marvin A. Chirelstein
Table of Contents
Preface
v
ch. One
Choice of Entity: Taxation of Partnerships, C Corporations and S Corporations
1
A.
Introduction
1
B.
The Flow-Through Feature of Partnerships and S Corporations
2
ch. Two
The Pass-Through Principle of Partnership Taxation
6
A.
Introduction
6
B.
Illustration
7
C.
The Timing of Partnership Income
9
D.
The Duration of a Partnership
10
E.
Partners as Self-Employed Taxpayers
10
F.
Partners and Social Security and Medicare Taxes
12
G.
The "Anti-Abuse" Regulations
12
H.
Comparison with Subchapter S
14
ch. Three
An Introduction to Partnership Basis and Limits on Losses
16
A.
The Tax Basis of Partnership Interests and Partnership Property
16
B.
The Effects of Partnership Debt Transactions Upon Basis
18
C.
Limits on the Deductibility of Partnership Losses
19
1.
Section 704(d)
20
2.
The At-Risk Rules of Section 465
20
3.
The Passive-Loss Rules of Section 469
22
D.
Comparison with Subchapter S
23
ch. Four
Contributions to Partnerships
24
A.
Contributions of Property
24
1.
The Statutory Pattern
24
2.
Holding Periods
25
3.
Contributions of Encumbered Property
26
4.
Depreciation Recapture
27
5.
Character Issues: Section 724
28
B.
Contributions of Services
28
1.
Receipt of an Interest in Partnership Capital
29
2.
Receipt of an Interest in Partnership Profits
31
C.
Contributions Distinguished from other Transactions
38
1.
Contribution vs. Sale to Partnership
38
2.
Contribution vs. Sale or Exchange Between Partners
41
D.
Comparison with Subchapter S
42
ch. Five
Allocations of Partnership Income, Deductions, and Credits: An Introduction
44
A.
An Overview of the Code and Regulations
44
B.
The "Substantial Economic Effect" Test
45
1.
Introduction
45
2.
Capital Accounts
46
3.
The "Simple" Capital Account Test for Substantial Economic Effect: Orrisch v. Commissioner
49
4.
The "Substantial Economic Effect" Regulations
53
a.
Determining "Economic Effect" When Capital Account Deficits Need Not Be Repaid
54
b.
The "Substantiality" Rules
56
c.
Some Special Problems
60
i.
Depreciation
60
ii.
Deductions Attributable to Nonrecourse Debt
63
iii.
Interaction of Nonrecourse Deductions With the Alternate Test for Economic Effect Test
68
iv.
Allocating Credits
69
C.
Comparison with Subchapter S
70
ch. Six
Allocations Attributable to Contributed Property: Section 704(c)
71
A.
Allocations of Gain or Loss
71
B.
Allocations of Depreciation
74
1.
The Traditional Method
75
2.
The Traditional Method With Curative Allocations
77
3.
The Remedial Allocation Method
79
C.
"Reverse Section 704(c) Allocations" Under Section 704(B)
82
D.
Distributions of Section 704(c) Property
83
E.
Distributions of Property to a Partner who has Contributed Section 704(c) Assets
85
F.
Comparison with Subchapter S
86
ch. Seven
Partnership Allocations: Assignment-of-Income Problems
87
A.
Family Partnerships
87
B.
Last-Minute Partners: Section 706(d)
90
C.
Assignments of Income not Dealt with by Specific Code Provisions: The Anti-Abuse Regulations
91
D.
Comparison with Subchapter S
95
ch. Eight
Allocation of Partnership Debt
96
A.
Introduction
96
B.
What is a Partnership Liability Under Section 752?
96
C.
The Definition of Recourse and Nonrecourse Debt
97
1.
Introduction
97
2.
Economic Risk of Loss and Constructive Liquidation
98
D.
Allocation of Recourse Liability
100
1.
In General
100
2.
Effect of Guarantees and Indemnifications of Recourse Debt
102
3.
Contributions of Property Encumbered by Recourse Debt
103
E.
Allocation of Nonrecourse Liability
104
1.
The First Tier of Nonrecourse Debt Allocation
104
a.
Sufficient Basis for Nonrecourse Deductions
104
b.
Refinancing
105
2.
The Second Tier of Nonrecourse Debt Allocation
106
a.
No Gain Recognized When Contributing Property Encumbered by Nonrecourse Debt
106
3.
The Third Tier of Nonrecourse Debt Allocation
106
4.
Effects of Guarantees of Nonrecourse Debt
108
F.
Obligations That are not "Liabilities" under [§] 752
109
G.
Comparison with Subchapter S
112
ch. Nine
Transactions Between Partnerships and Their Partners
113
A.
Income-Related Payments: Distributive Shares and Section 707(a) Payments
115
B.
Fixed Payments: Guaranteed Payments and Section 707(A) Payments
117
C.
Determining Whether a "Partner Capacity" Payment is a Distributive Share or a Guaranteed Payment
118
1.
Minimum Payments
118
2.
Payments Measured by a Partnership's Gross Income
121
D.
Some Other Aspects of Transactions Between Partners and Partnerships
121
E.
Comparison with Subchapter S
122
ch. Ten
Sales of Partnership Interests
123
A.
Taxation of the Seller
123
1.
The Seller's Amount Realized
123
2.
Section 751(a)
124
3.
Taxation of Look-through Gains Under Section 1(h)
128
B.
The Buyer's Outside and Inside Bases
129
1.
The Buyer's Outside Basis
129
2.
Inside Basis Adjustments Under Section 743(b)
130
a.
Determining the Transferee's Share of Inside Basis
131
b.
Allocating Section 743(b) Adjustments to Particular Assets
133
c.
Using the Section 743(b) Adjustment
137
d.
The Section 754 Election and Adjustments Required Without a 754 Election for Substantial Built-in Loss
138
3.
Basis Adjustments Under Section 732(d)
139
C.
Collateral Effects of a Sale of a Partnership Interest
140
D.
Comparison with Subchapter S
141
1.
Calculating Gain on the Sale of Stock
141
2.
Character of Gain and Inside Basis Adjustments Upon Transfers of Interests
141
3.
Termination by Sale
143
ch. Eleven
Partnership Distributions: An Introduction
144
A.
The General Principle of Nonrecognition
145
B.
Cases in Which Gain or Loss is Recognized
151
1.
Gain Recognition
151
2.
Liquidating Distributions on Which Loss Is Recognized
152
3.
"De Minimis" Distributions of Property
154
4.
Distributions of Section 704(c) Property
155
5.
Distributions Taxed Under Section 737
155
C.
Tax Treatment of the Partnership
156
D.
Comparison with Subchapter S
157
ch. Twelve
Distributions Subject to Section 751(b)
158
A.
Liquidating Distributions of Assets Other Than Section 751 Assets
161
B.
Liquidating Distributions of Section 751 Property
164
C.
Section 751(b) and Current Distributions
167
D.
The Scope of Section 751(b): An Example
168
E.
COMPARISON WITH SUBCHAPTER S
170
ch. Thirteen
Payments to Retiring Partners: Section 736 and Related Problems
171
A.
Introduction
171
1.
Interpreting Section 736---In General
172
2.
Payments by Service Partnerships to Retiring General Partners
173
B.
How Section 736 Payments are Taxed
176
C.
Examples
178
D.
Some Complications
181
1.
The Relationship Between Section 736 and Section 751(b)
181
2.
A Refinement in the Definition of Section 736(a) Payments
182
3.
Liquidation of an Entire Partnership
183
E.
Sales and Retirement Payments Distinguished
183
F.
Problems of "Form" and "Substance"
186
G.
Comparison with Subchapter S
187
ch. Fourteen
Basis Adjustments Under Section 734
188
A.
Adjustments Under Section 734
189
1.
Distributions That Change the Basis of the Distributed Property
189
2.
Distributions on Which Gain or Loss Is Recognized
190
3.
Allocating the Adjustment to Particular Assets
192
4.
Adjustments Required Without a Section 754 Election: Substantial Basis Reductions
194
B.
Section 734 and the Anti-Abuse Regulations
195
C.
Comparison with Subchapter S
196
ch. Fifteen
The Death of a Partner
198
A.
Income in Respect of a Deceased Partner
198
1.
Introduction
198
2.
The Basis of an Inherited Partnership Interest
199
B.
Closing the Partnership's Taxable Year Upon the Death of a Partner
203
C.
Sale or Liquidation of a Deceased Partner's Interest
204
D.
Comparison with Subchapter S
204
ch. Sixteen
What Is a Partnership?
206
A.
Co-Ownership of Property
207
B.
Cost-Sharing and Employment Arrangements
208
C.
Partnership vs. Corporation
210
D.
Election out of Subchapter K
212
E.
Publicly Traded Partnerships
213
F.
Electing Large Partnerships
215
Table of Cases
217
Table of Internal Revenue Code Sections
219
Table of Treasury Regulations and Rulings
223
Index
225