Partnership Income Taxation

by Gunn, Alan

• ISBN13: 9781566627993
• ISBN10: 1566627990
• Edition: 3rd
• Format: Paperback
• Copyright: 1999-09-01
• Publisher: West Group

Table of Contents

Preface	v
The Pass-Through Principle of Partnership Taxation	1	(12)
Introduction	1	(2)
Illustration	3	(2)
The Tax Basis of Partnership Interests and Partnership Property	5	(2)
The Timing of Partnership Income	7	(1)
The Duration of A Partnership	8	(1)
Partners As Self-Employed Taxpayers	9	(1)
The ``Anti-Abuse'' Regulations	10	(2)
Comparison with Sub S	12	(1)
An Introduction to Partnership Debt	13	(18)
The Effects of Debt Transactions upon Partners	13	(2)
Determining the Partners' Shares of Partnership Debt	15	(9)
Some Aspects of Debt	15	(2)
What Is A Partnership Debt?	17	(1)
Determining A Partner's Share of Debt under the Regulations	18	(1)
Nonrecourse Debt	18	(3)
Recourse Debt	21	(2)
``Anti-Abuse rules'' and the Allocation of Debt	23	(1)
Limits On the Deductibility of Partnership Losses	24	(5)
Section 704(D)	25	(1)
The At-Risk Rules of Section 465	26	(1)
The Passive-Loss Rules of Section 469	27	(2)
Comparison with Subchapters	29	(2)
Contributions to Partnerships	31	(24)
Contributions of Property	31	(7)
The Statutory Pattern	31	(1)
Problems Involving Liabilities	32	(4)
Depreciation Recapture	36	(1)
Character Issues: Section 724	37	(1)
Contributions of Services	38	(9)
Receipt of an Interest in Partnership Capital	39	(3)
Receipt of an Interest in Partnership Profits	42	(5)
Contributions Distinguished From Other Transactions	47	(5)
Contribution vs. Sale to Partnership	48	(3)
Contribution vs. Sale or Exchange between Partners	51	(1)
Comparison with Subs	52	(3)
Allocations of Partnership Income, Deductions, and Credits: An Introduction	55	(38)
An Overview of the Code and Regulations	55	(1)
The ``Substantial Economic Effect'' Test	56	(20)
Introduction	56	(1)
Capital Accounts	57	(4)
The ``Substantial Economic Effect'' Regulations	61	(1)
Determining ``Economic Effect'' When Capital-Account Deficits Need Not Be Repaid	62	(3)
The ``Substantiality'' Rules	65	(4)
Some Special Problems	69	(1)
Depreciation	69	(3)
Deductions Attributable to Nonrecourse Debt	72	(4)
Contributed Property: Section 704(C)	76	(16)
Allocations of Gain or Loss	76	(4)
Allocations of Depreciation	80	(1)
The Traditional Method	80	(2)
The Traditional Method with Curative Allocations	82	(3)
The Traditional Method with Remedial Allocations	85	(3)
``Reverse § 704(c) Allocations'' under Section 704(b)	88	(1)
Distributions of Section 704(c) Property	89	(1)
Distributions of Property to a Partner Who Has Contributed Section 704(c) Assets	90	(2)
Allocating Credits	92	(1)
Comparison with Subs	92	(1)
Partnership Allocations: Assignment-of Income Problems	93	(8)
Family Partnerships	93	(3)
Last-Minute Partners: Section 706(D)	96	(1)
Assignments of Income Not Dealt With By Specific Code Provisions: the Anti-Abuse Regulations	96	(4)
Comparison with Subs	100	(1)
Transactions between Partnerships and Their Partners	101	(12)
Income-Related Payments: Distributive Shares and Section 707(a) Payments	103	(3)
Fixed Payments: Guaranteed Payments and Section 707(a) Payments	106	(1)
Determining Whether A ``Partner Capacity'' Payment Is A Distributive Share or a Guaranteed Payment	107	(3)
Minimum Payments	107	(3)
Payments Measured by a Partnership's Gross Income	110	(1)
Some Other Aspects of Transactions Between Partners And Partnerships	110	(1)
Comparison with Subchapters	111	(2)
Sales of Partnership Interests	113	(20)
Taxation of the Seller	113	(6)
The Seller's Amount Realized	113	(1)
Section 751 (a)	114	(5)
The Buyer's outside and Inside Bases	119	(10)
The Buyer's Outside Basis	119	(1)
Inside Basis Adjustments under Section 743(b)	119	(1)
Determining the Transferee's Share of Inside Basis	120	(2)
Allocating § 743(b) Adjustments to Particular Assets	122	(4)
Using the § 743(b) Adjustment	126	(1)
The Section 754 Election	127	(1)
Basis Adjustments under Section 732(d)	128	(1)
Collateral Effects of A Sale of A Partnership Interest	129	(2)
Comparison with Subs	131	(2)
Calculating Gain on the Sale of Stock	131	(1)
Character of Gain and Inside Basis Adjustments upon Transfers of Interests	131	(1)
Termination by Sale	132	(1)
Partnership Distributions: an Introduction	133	(16)
The General Principle of Nonrecognition	134	(5)
Cases in Which Gain or Loss is Recognized	139	(6)
Gain Recognition	139	(2)
Liquidating Distributions on Which Loss Is Recognized	141	(1)
``De Minimis'' Distributions of Property	142	(1)
Distributions of Section 704(c) Property	143	(1)
Distributions Taxed under Section 737	144	(1)
Distributions and the Anti-Abuse Regulations	145	(1)
Tax Treatment of the Partnership	146	(1)
Comparison with Subchapters	146	(3)
Distributions Subject to Section 751(b)	149	(16)
Liquidating Distributions of Assets Other Than Section 751 Assets	152	(4)
Liquidating Distributions of Section 751 Property	156	(3)
Section 751 (a) and Current Distributions	159	(2)
The Scope of Section 751 (a): An Example	161	(2)
Comparison with Subchapters	163	(2)
Payments to Retiring Partners: Section 736 and Related Problems	165	(16)
Introduction	165	(4)
Payments ``for Property'' and Other Payments	167	(1)
Payments by Service Partnerships to General Partners	167	(2)
How Section 736 Payments Are Taxed	169	(2)
Examples	171	(2)
Some Complications	173	(3)
The Relationship between Section 736 and Section 751 (b)	173	(2)
A Refinement in the Definition of Section 736(a) Payments	175	(1)
Liquidation of an Entire Partnership	175	(1)
Sales and Retirement Payments Distinguished	176	(3)
Problems of ``Form'' and ``Substance''	179	(1)
Comparison with Subchapters	180	(1)
Basis Adjustments under Section 734	181	(10)
Adjustments Under Section 734	182	(5)
Distributions That Change the Basis of Property	182	(1)
Distributions on Which Gain or Loss Is Recognized	183	(3)
Allocating the Adjustment to Particular Asset	186	(1)
Section 734 and the Anti-Abuse Regulations	187	(2)
Comparison with Subchapters	189	(2)
The Death of a Partner	191	(8)
Income in Respect of a Deceased Partner	191	(5)
Introduction	191	(1)
The Basis of an Inherited Partnership Interest	192	(4)
Closing the Partnership's Taxable Year upon the Death of a Partner	196	(1)
Sale or Liquidation of a Deceased Partner's Interest	197	(1)
Comparison with Subchapters	197	(2)
What Is a Partnership?	199	(12)
Partnership vs. Cost-Sharing and Employment Arrangements	200	(1)
Partnership vs. Co-Ownership Of Property	201	(3)
Partnership vs. Corporation	204	(3)
Publicly Traded Partnerships	207	(1)
Electing Large Partnerships	208	(3)
Table of Cases	211	(2)
Table of Internal Revenue Code Sections	213	(2)
Table of Treasury Regulations and Rulings	215	(2)
Index	217