Tag: partnerships

What happens to tax basis upon death?

Upon death, the decedent’s estate is required to report as tax basis for estate tax purposes the fair market values of all applicable assets—either the values at date-of-death, or at the alternate valuation date, if elected. If the value of...

IRS issues final regulations under section 199A (20% deduction)

The U.S. Department of the Treasury has issued final regulations and other guidance on a substantial provision of the Tax Cuts and Jobs Act, which allows owners of sole proprietorships, partnerships, trusts, and S corporations to deduct up to 20...

What to consider when structuring 1031 partnership exchanges

Over the last few decades, we’ve learned that partnerships can cause significant planning problems for partners and their tax advisors. Partners are not permitted to sell or dispose of their partnership interest and subsequently defer the payment of their capital...

Can partners concurrently be employees?

Question:     Can a partner in a business, for tax purposes, also be an employee? Answer:        A partner CANNOT be an employee of the partnership. This conclusion is per the following: a) I.R.S. Revenue Ruling 69-184...

Penalty relief for 2016 partnership filings

The IRS has issued a notice providing more time for partnerships, real estate mortgage investment conduits and some other types of businesses to file their returns. If your partnership has received a late filing notice for 2016 tax year because...

Changes to partnership audit procedures may prompt the need for review

Congress recently enacted significant changes to partnership audit and adjustment rules which are expected to dramatically increase the audit rates for partnerships. These changes will require partners to carefully review, if not revise, their partnership’s operating agreement. The new rules...

A summary of partner distributions and preference payments

By definition, a distribution is a transfer of cash or property by a partnership to a partner with respect to the partner's interest in partnership capital or income. Distributions do not include loans to partners or amounts paid to partners...