Fundamentals of partnership taxation : cases and materials

Synopsis

The course book teaches the essentials of partnership taxation while updating students on changes resulting from significant amendments to Subchapter K made by the Taxpayer Relief Act of 1997. Also includes in-depth discussion of S corporations and significant changes made by the Small Business and Job Protection Act of 1996.Summary of Contents" Preface" Acknowledgements" Table Of Internal Revenue Code Sections" Table Of Treasury Regulations" Table Of Revenue Rulings" Table Of Miscellaneous Rulings" Table Of Cases" Table Of Authorities" Part One. IntroductionChapter1. An Overview of the Taxation of Partnerships and PartnersA. Introduction to Subchapter KB. Tax Classification of Business Enterprises1. In General2. Corporations and Partnerships3. Trusts4. Tax Policy ConsiderationsC. Introduction to Choice of Business Entity" Part Two. Taxation of Partnerships and Partners2. Formation of a PartnershipA. Contributions of Property1. General Rule2. Introduction to Partnership AccountingB. Treatment of Liabilities: the Basics1. Impact of Liabilities on Partners Outside Basis2. Contributions of Encumbered PropertyC. Contributions of Services1. Introduction2. Receipt of a Capital Interest for Services3. Receipt of a Profits Interest for ServicesD. Organization and Syndication Expenses3. Operations of a Partnership: General RulesA. Tax Consequences to the Partnership: Aggregate and Entity Principles1. The Partnership as an Entity2. Assignment of Income3. The Taxable YearB. Tax Consequences to the Partners1. General Rules2. Electing Large PartnershipsC. Limitations on Partnership Losses1. Basis Limitations2. AtRisk Limitations3. Passive Loss Limitations4. Partnership AllocationsA. IntroductionB. Special Allocations Under Section 704(b)1. Background: The Substantial Economic Effect Concept2. The Section 704(b) Regulations: Basic Rules3. Allocations Attributable to Nonrecourse Debt4. Policy ConsiderationsC. Allocations with Respect to Contributed Property1. Introduction2. Sales and Exchanges of Contributed Property3. Depreciation of Contributed Property4. Other Applications of Section 704(c) Principles5. Distributions of Contributed PropertyD. Allocation of Partnership Liabilities1. Introduction2. Recourse Liabilities3. Nonrecourse Liabilities4. Tiered PartnershipsE. Allocations Where Partners Interests Vary During the YearF. The Family Partnership Rules5. Transactions Between Partners and PartnershipsA. Payments for Services and the Use of Property1. Introduction2. Partner Acting in Nonpartner Capacity3. Disguised Payments4. Guaranteed PaymentsB. Sales and Exchanges of Property Between Partners and Partnerships1. Sales and Exchanges with Respect to Controlled Partnerships2. Disguised Sales3. Transfers of Property and Related Allocations6. Sales and Exchanges of Partnership InterestsA. Consequences to the Selling Partner1. The Operation of Section 751(a)2. Capital Gains LookThrough Rule3. Collateral IssuesB. Consequences to the Buying Partner7. Operating DistributionsA. IntroductionB. Consequences to the Distributee Partner1. Nonrecognition Rules on the Distribution2. Consequences on Subsequent Sales of Distributed PropertyC. Consequences to the Distributing PartnershipD. Mixing Bowl Transactions1. Distributions of Contributed Property to Another Partner2. Distributions of Other Property to the Contributing PartnerE. Distributions Which Alter the Partners Interests in Ordinary Income Property8. Liquidating Distributions and TerminationsA. IntroductionB. Liquidation of a Partners Interest1. Section 736(b) Payments2. Section 736(a) Payments3. Allocation and Timing of Section 736 PaymentsC. Liquidation vs. Sale of a Partnership InterestD. Liquidation of a Partnership1. Voluntary Liquidation2. Partnership Terminations Forced by Statute9. The Death of a PartnerA. IntroductionB. Treatment of Income in Year of Partners DeathC. Estate Taxation of Partnership Interests, Treatment of "IRD" Items and Basis ConsequencesD. Consequences of a Sale or Liquidation of a Deceased Partners Interest at Death10. The Partnership AntiAbuse RegulationsA. IntroductionB. Abusive Use of SubchapterC. Abusive Treatment of a Partnership as an Entity" Part Three. Taxation of Other PassThrough Entities11. S Corporations and Their ShareholdersA. IntroductionB. Eligibility for S Corporation StatusC. Election, Revocation and TerminationD. Treatment of the Shareholders1. PassThrough of Income and Losses: Basic Rules2. Loss Limitations3. Sale of S Corporation Stock4. Special Problems: Discharge of IndebtednessE. Distributions to ShareholdersF. Taxation of the S CorporationG. Coordination with Subchapter CH. Compensation IssuesI. Tax Policy Issues: Subchapter K vs. Subchapter S" Appendix" Index