Thought-provokinganalysis and opinion on federal tax issues

Category Archives: Partners and Partnerships

Video Discussion on Carried Interests

August 7, 2020

by Monte A. Jackel

Tax Notes just released this video. https://www.youtube.com/watch?v=6GGcBwJIh48. It is a discussion by me with Ben Willis, contributing editor of Tax Notes, on Ben’s regular monthly Willis Weighs In podcast. This video was recorded right before the regulations were released but it contains a number of what I think are interesting issues. I thought this would […]

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Some Preliminary Observations on the Partnership Aspects of New Final and Proposed 163(j) Regulations

July 31, 2020

by Monte A. Jackel

Recent regulations under section 163(j) were issued in final form and new regulations were proposed. Some high level highlights reflecting several posts I have on LinkedIn here. https://www.linkedin.com/in/monte-a-jackel-18921024/detail/recent-activity/. Some post excerpts are below. “On the proposed 163(j) regulations relating to partnerships, a few questions. First, why don’t the rules address where a partnership lends to […]

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Partnership Aspects of Final FDII Regulations

July 12, 2020

by Monte A. Jackel

I put together this brief outline with highlights and the pertinent provisions of the final FDII regulations as they relate to partnerships and partners. https://jackeltaxlaw.com/wp-content/uploads/2020/07/Proposed-250-regs.docx. Thought it would be of interest. The highlights of these regulations as they relate to partnerships and partners follow. With respect to partnerships and partners, the inclusion rule refers to […]

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Conservation Easement Partnerships

June 26, 2020

by Monte A. Jackel

The IRS recently publicly disclosed a settlement offer to conservation easement partnerships. The announcement disclosed the general terms of the offer. Among the terms was that all partners have to agree, the deduction is disallowed, penalties are imposed but the investor partners can write off the acquisition cost of the investment. See https://www.linkedin.com/feed/update/urn:li:activity:6682239236176982016/. There are […]

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Grantor Trust Ownership Again

June 5, 2020

by Monte A. Jackel

The IRS very recently expressed its view that changes in the ownership percentages of investors in a multiple owner grantor trust were sales and purchases for federal tax purposes. In Rev. Proc. 2020-34 https://www.irs.gov/pub/irs-drop/rp-20-34.pdf, the IRS provided safe harbors for an entity titled a statutory trust under Delaware law from being treated as having the […]

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Disguised Sales and the Centralized Partnership Audit Regime

June 3, 2020

by Monte A. Jackel

I posted this recently in the Procedurally Taxing blog. https://procedurallytaxing.com/disguised-sales-to-partnerships-bba-centralized-audits-and-due-process/. It deals with disguised sales to partnerships, the BBA centralized partnership audit regime, whether the selling partner’s gain is part of the imputed underpayment, and the due process issue raised if the selling partner is separately audited on the sales gain which is not treated […]

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Recently Proposed Rehabilitation Tax Credit Regulations

May 21, 2020

by Monte A. Jackel

Proposed regulations under section 47, REG-124327-19, filed on May 21, 2020 with the federal register, provides guidance on the requirement added in the Tax Cuts and Jobs Act (TCJA) relating to the allocation of the rehabilitation tax credit over a five year period. Those proposed regulations also provide guidance on the interaction between the new […]

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IRS Issues PTP Look-through Ruling That Lacks Authority

April 21, 2020

by Monte A. Jackel

I wrote a letter to the editor of Tax Notes relating to an issue of the pass-through treatment of PTPs when applying the investment company rules of section 351(e) and 721(b). https://www.taxnotes.com/tax-notes-today-federal/partnerships-and-other-passthrough-entities/letter-ruling-ptp-look-through-illegal/2020/04/21/2cfn8. I also posted a comment to that letter in LinkedIn and Twitter. https://www.linkedin.com/feed/update/urn:li:activity:6658337228848156672/ and https://twitter.com/jackeltaxlaw/status/1252571602698620928. Thoughtful feedback to either me or the government […]

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Corona virus business tax provisions

March 26, 2020

by Monte A. Jackel

The attached document provides some highlights of the business provisions contained in the Senate bill. https://jackeltaxlaw.com/wp-content/uploads/2020/03/Virus-business-tax-provisions.docx

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Some Recent Posts on LinkedIn

March 20, 2020

by Monte A. Jackel

I have posted a number of comments on LinkedIn dealing with various current developments. They are located here. https://www.linkedin.com/in/monte-a-jackel-18921024/detail/recent-activity/

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At Risk Basis for Guarantees

February 21, 2020

by Monte A. Jackel

I am attaching a write-up on a recent Tax Court case dealing with at risk basis under section 465 and guarantees. https://jackeltaxlaw.com/wp-content/uploads/2020/02/At-risk-Tax-Court-case.docx

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Tax Credit Partnerships Again

February 20, 2020

by Monte A. Jackel

I am attaching a short write-up on the issue of whether an investor will be treated as a partner in a tax credit partnership. https://jackeltaxlaw.com/wp-content/uploads/2020/02/Tax-Credit-Guidance.docx

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IRS Corrects Attribution Example in Final 721(c) Regs

February 15, 2020

by Monte A. Jackel

I recently published an article in Tax Notes discussing the final regulations under section 721(c). See link which is behind Tax Notes’ paywall. https://www.taxnotes.com/tax-notes-today-federal/transfer-pricing/complexity-and-confusion-cross-border-partnership-regs-finalized/2020/02/10/2c3xl?highlight=Jackel . In the article, I pointed out that the attribution example in the final regulation preamble was incorrect because there is no concept of indirect ownership through corporations in the final […]

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The Politics of Regulation Drafting

February 1, 2020

by Monte A. Jackel

The attached is a re-print of an article I recently published in Tax Notes on the politics of regulation drafting. I thought this would be of interest. https://jackeltaxlaw.com/wp-content/uploads/2020/01/Jackel-01-20-2020.pdf

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The Effective Date of Section 721(c) Regs

January 17, 2020

by Monte A. Jackel

I wrote a short note on the effective date of the section 721(c) regulations on LinkedIn. I am really not sure of the answer. See attached link. https://www.linkedin.com/in/monte-a-jackel-18921024/detail/recent-activity/shares/

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My LinkedIn Posts For Tax Notes Articles and Stories

January 3, 2020

by Monte A. Jackel

I cannot post my comments to Tax Notes stories and articles here because the Tax Notes stories are behind a pay wall, for those subscribers only. But here is a link to my LinkedIn page where you can find posts of mine dealing with those stories and articles. https://www.linkedin.com/in/monte-a-jackel-18921024/detail/recent-activity/

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Passthroughs and Special Industries Must Spin Off Partnerships As A Separate Division

December 27, 2019

by Monte A. Jackel

I recently read a news story in the tax press about recommended changes to the IRS as part of the mandated report due next October under the Taxpayer First Act, P.L. 116-25. The act mandates a report to Congress relating to potential reorganization changes to the IRS. Although this act is directed at the Internal […]

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Brief Summary Of Ozone Final Regulations Highlights For Partnerships And Partners

December 22, 2019

by Monte A. Jackel

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Tax Court Worthless Partnership Interest Loss Case Fails to Address Several Key Issues

December 11, 2019

by Monte A. Jackel

In MCM Management, the Tax Court, in a memorandum opinion, held that a partnership interest was worthless and generated an ordinary loss based on the facts of the case. Some key takeaways from the case follow: There is no discussion in the case of cancellation of indebtedness income. Since the court held that there was […]

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Guaranteed Payments On Capital As Interest Expense

December 9, 2019

by Monte A. Jackel

The attached outline discusses this https://jackeltaxlaw.com/wp-content/uploads/2019/12/COMMENTARY-ON-INTERACTION-OF-THE-TERM.docxissue.

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Highlights of Recent Foreign Tax Credit Regs and Partnerships

December 5, 2019

by Monte A. Jackel

The recently proposed and final foreign tax credit regulations issued December 2 of this year provides the following key points relating to partnerships and partners. This is a brief summary only to highlight these changes. Further study is required. The final regulations finalize what are known as “downstream loans”, which are loans by partners to […]

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Sun Capital Case Rejects Joint Economics And Favors Separate Formalities In Determining Whether A Partnership In Fact Exists

November 27, 2019

by Monte A. Jackel

The recent Sun Capital case in the First Circuit rejected the holding of the District Court below that two separate entities had formed a deemed partnership in fact due to their joint objectives, cooperation and sharing in joint profits and losses´┐╝. Rather, the First Circuit focused more heavily on the separateness of the two entities […]

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Partnership FAQs Inappropriate

October 31, 2019

by Monte A. Jackel

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