Fundamentals of partnership taxation : cases and materials / by Stephen Schwarz, Daniel J. Lathrope.
2012
KF6452 .S39 2012 (Map It)
Available at Cellar
Formats
| Format | |
|---|---|
| BibTeX | |
| MARCXML | |
| TextMARC | |
| MARC | |
| DublinCore | |
| EndNote | |
| NLM | |
| RefWorks | |
| RIS |
Items
Details
Author
Title
Fundamentals of partnership taxation : cases and materials / by Stephen Schwarz, Daniel J. Lathrope.
Published
New York, NY : Foundation Press Thomson/West, 2012.
Call Number
KF6452 .S39 2012
Edition
Ninth edition.
ISBN
9781609300692 (hbk)
1609300696 (hbk)
1609300696 (hbk)
Description
lvii, 473 pages : illustrations, form ; 26 cm.
System Control No.
(OCoLC)795518080
Note
Revised edition of: Fundamentals of partnership taxation cases and materials / by Stephen A. Lind [and others].
Bibliography, etc. Note
Includes bibliographical referances (pages lv-lvii) and index.
Series
Record Appears in
Added Author
Table of Contents
Preface
v
Acknowledgements
ix
Table of Internal Revenue Code Sections
xxi
Table of Treasury Regulations
xxxvii
Table of Revenue Rulings
xlvii
Table of Miscellaneous Rulings
xlix
Table of Cases
li
Table of Authorities
lv
pt. ONE
Introduction
1
ch. 1
An Overview of the Taxation of Partnerships and Partners
2
A.
Introduction to Subchapter K
2
B.
Tax Classification of Business Enterprises
4
1.
In General
4
2.
Corporations vs. Partnerships
7
a.
"Check-The-Box" Regulations
7
b.
Existence of a Separate Entity for Federal Tax Purposes
9
Podell v. Commissioner
10
Allison v. Commissioner
11
Note
14
Problems
17
c.
Publicly Traded Partnerships
17
3.
Trusts
19
4.
Tax Policy Considerations
19
Excerpt from Review of Selected Entity Classification and Partnership Tax Issues
20
C.
Introduction to Choice of Business Entity
22
pt. TWO
Taxation of Partnerships and Partners
31
ch. 2
Formation of a Partnership
32
A.
Contributions of Property
32
1.
General Rules
32
Revenue Ruling 99-5
34
Note
37
Problem
38
2.
Introduction to Partnership Accounting
39
Problem
45
B.
Treatment of Liabilities: The Basics
45
1.
Impact of Liabilities on Partner's Outside Basis
45
Problem
48
2.
Contributions of Encumbered Property
48
Problems
52
C.
Contributions of Services
53
1.
Introduction
53
2.
Receipt of a Capital Interest for Services
54
McDougal v. Commissioner
56
Problem
61
3.
Receipt of a Profits Interest for Services
62
Hale v. Commissioner
62
Note
63
Diamond v. Commissioner
63
Note
69
Revenue Procedure 93-27
71
Note
73
Problems
75
4.
Proposed Regulations
75
Excerpt from Proposed Revenue Procedure 2005-43
78
D.
Organization and Syndication Expenses
81
Problem
82
ch. 3
Operations of a Partnership: General Rules
84
A.
Tax Consequences to the Partnership: Aggregate and Entity Principles
84
1.
The Partnership as an Entity
84
Revenue Ruling 68-79
85
Demirjian v. Commissioner
86
2.
Assignment of Income
89
Schneer v. Commissioner
89
Note
100
3.
The Taxable Year
101
Problem
104
B.
Tax Consequences to the Partners
104
1.
General Rules
104
Problem
107
2.
Electing Large Partnerships
108
C.
Limitations on Partnership Losses
110
1.
Basis Limitations
110
Problem
111
2.
At-Risk Limitations
111
Problems
115
3.
Passive Loss Limitations
116
Problems
122
ch. 4
Partnership Allocations
124
A.
Introduction
124
B.
Special Allocations Under Section 704(b)
126
1.
Background: The Substantial Economic Effect Concept
126
Orrisch v. Commissioner
126
Note
131
B.
Special Allocations Under Section 704(b)---Continued
2.
The Section 704(b) Regulations: Basic Rules
134
a.
Introduction
134
b.
Maintenance of Partners' Capital Accounts
135
c.
Economic Effect
138
d.
Substantiality
145
Revenue Ruling 99-43
151
e.
Default Reallocations: The Partners' Interest in the Partnership
156
f.
Special Rules
158
Problems
160
3.
Allocations Attributable to Nonrecourse Debt
162
Problem
172
4.
A Different Approach: Target Allocations
173
C.
Allocations with Respect to Contributed Property
175
1.
Introduction
175
2.
Sales and Exchanges of Contributed Property
179
a.
Section 704(c) Allocation Methods
179
b.
Characterization of Gain or Loss on Disposition of Contributed Property
183
3.
Depreciation of Contributed Property
185
4.
Other Applications of Section 704(c) Principles
188
5.
Distributions of Contributed Property
190
6.
Anti-Abuse Rules for Loss Property
190
Problems
191
D.
Allocation of Partnership Liabilities
193
1.
Introduction
193
2.
Recourse Liabilities
194
3.
Nonrecourse Liabilities
199
Revenue Ruling 95-41
205
4.
Tiered Partnerships
210
Problems
210
E.
Allocations Where Partners' Interests Vary During the Year
212
Problems
218
F.
The Family Partnership Rules
219
Problems
220
ch. 5
Transactions Between Partners and Partnerships
222
A.
Payments for Services and the Use of Property
222
1.
Introduction
222
2.
Partner Acting in Nonpartner Capacity
224
Pratt v. Commissioner
224
Armstrong v. Phinney
225
Note
227
Problems
229
3.
Disguised Payments
230
Problems
235
4.
Guaranteed Payments
235
Gaines v. Commissioner
237
Revenue Ruling 69-180
240
Revenue Ruling 2007-40
242
Note
243
5.
Policy Issues: Taxation of "Carried Interests"
244
Problems
246
B.
Sales and Exchanges of Property Between Partners and Partnerships
248
1.
Sales and Exchanges With Respect to Controlled Partnerships
248
2.
Disguised Sales
249
3.
Transfers of Property and Related Allocations
252
Problems
253
ch. 6
Sales and Exchanges of Partnership Interests
255
A.
Consequences to the Selling Partner
255
1.
The Operation of Section 751(a)
255
Glazer v. Commissioner
259
Ledoux v. Commissioner
263
Problems
271
2.
Capital Gains Look-Through Rule
272
Problem
273
3.
Collateral Issues
274
a.
Holding Period
274
b.
Installment Sales of Partnership Interests
275
Revenue Ruling 89-108
275
Note
277
Problem
278
B.
Consequences to the Buying Partner
279
Problems
287
ch. 7
Operating Distributions
289
A.
Introduction
289
B.
Consequences to the Distributee Partner
291
1.
Nonrecognition Rules on the Distribution
291
Revenue Ruling 94-4
296
Revenue Ruling 79-205
297
Problems
300
2.
Consequences on Subsequent Sales of Distributed Property
301
Problems
303
C.
Consequences to the Distributing Partnership
304
Problem
309
D.
Mixing Bowl Transactions
309
1.
Distributions of Contributed Property to Another Partner
310
2.
Distributions of Other Property to the Contributing Partner
312
Problem
314
E.
Distributions Which Alter the Partners' Interests in Ordinary Income Property
315
Notice 2006-14
322
Problems
324
ch. 8
Liquidating Distributions and Terminations
327
A.
Introduction
327
B.
Liquidation of a Partner's Interest
329
1.
Section 736(b) Payments
329
Problems
334
2.
Section 736(a) Payments
335
Smith v. Commissioner
338
Commissioner v. Jackson Investment Co.
342
3.
Allocation and Timing of Section 736 Payments
345
Problem
347
C.
Liquidation vs. Sale of a Partnership Interest
348
Foxman v. Commissioner
348
Revenue Ruling 93-80
352
Note
356
Problem
356
D.
Liquidation of a Partnership
357
1.
Voluntary Liquidation
357
a.
In General
357
Revenue Ruling 77-412
358
Revenue Ruling 99-6
359
Problem
362
b.
Incorporation of a Partnership
363
Revenue Ruling 84-111
363
Note
368
Problem
368
c.
Partnership Mergers and Divisions
369
Revenue Ruling 2004-43
372
d.
Policy
379
Excerpt From Heather M. Field, "Fiction, Form, and Substance in Subchapter K: Taxing Partnership Mergers, Divisions, and Incorporations"
379
2.
Partnership Terminations Forced by Statute
381
McCauslen v. Commissioner
383
Revenue Ruling 95-37
386
Note
388
Problems
388
ch. 9
The Death of a Partner
390
A.
Introduction
390
B.
Treatment of Income in Year of Partner's Death
390
C.
Estate Taxation of Partnership Interests, Treatment of "IRD" Items and Basis Consequences
391
Quick's Trust v. Commissioner
395
Woodhall v. Commissioner
399
Revenue Ruling 66-325
402
Problem
403
D.
Consequences of a Sale or Liquidation of a Deceased Partner's Interest at Death
404
Problems
404
ch. 10
The Partnership Anti-Abuse Regulation
406
A.
Introduction
406
B.
Abusive Use of Subchapter K
407
Note
410
Problem
411
C.
Abusive Treatment of a Partnership as an Entity
412
pt. THREE
Taxation of S Corporations
413
ch. 11
S Corporations and Their Shareholders
414
A.
Introduction
414
B.
Eligibility for S Corporation Status
416
Problem
422
C.
Election, Revocation and Termination
423
Problem
427
D.
Treatment of the Shareholders
428
1.
Pass-Through of Income and Losses: Basic Rules
428
2.
Loss Limitations
430
a.
In General
430
Harris v. United States
431
Note
437
b.
Subchapter S Losses and Section 362(e)(2)
437
3.
Sale of S Corporation Stock
439
Problems
440
E.
Distributions to Shareholders
442
Problems
444
F.
Taxation of the S Corporation
445
Problems
451
G.
Coordination with Subchapter C
452
Problems
457
H.
Compensation Issues
458
Radtke, S.C. v. United States
458
Note
461
I.
Tax Policy Issues: Subchapter K vs. Subchapter S
462
Excerpt From Review of Selected Entity Classification and Partnership Tax Issues
462
Appendix
467
Index
469