Thought-provokinganalysis and opinion on federal tax issues

Category Archives: Partners and Partnerships

Where To Find Some Prior Posts No Longer Here

January 23, 2021

by Monte A. Jackel

Please take a look at the Leo Berwick blog at https://leoberwick.com/category/tax-professionals/

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I Am Joining Leo Berwick As Of Counsel

January 10, 2021

by Monte A. Jackel

I am pleased to announce that I will be joining Leo Berwick https://leoberwick.com/ as Of Counsel. https://jackeltaxlaw.com/wp-content/uploads/2020/12/Leo-Berwick-LINKEDIN-Banner.jpg. This association will allow me to continue to comment and publish on tax matters while teaming with other seasoned tax professionals to advise on complex transactions. Leo Berwick is a new firm made up of ex-Big 4 and […]

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From Procedurally Taxing Blog On Phantom Regulations

December 30, 2020

by Monte A. Jackel

This was posted yesterday on the Procedurally Taxing blog. https://procedurallytaxing.com/. The text is reproduced below. The substance of this blog will be published as a letter to the editor of Tax Notes, Tax Analysts, Fairfax VA, on this coming Saturday/Monday. Introduction  In recently finalized small business accounting regulations (T.D. 9942, Dec. 23, 2020), the IRS and Treasury […]

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Letter to the Editor of Tax Notes on Partnerships and Proposed Conservation Easement Bill

December 13, 2020

by Monte A. Jackel

I published this on December 14, 2020 in Tax Notes https://www.taxnotes.com/tax-notes-federal/partnerships/conservation-easement-bill-does-not-jibe-partnerships/2020/12/14/2d99w on the proposed charitable easement bill limiting the section 170 deduction for partnerships. It is reproduced below. “I write this letter in response to Kristen A. Parillo’s news story titled “House Easement Abuse Bill Contains Break for Historic Buildings” (Dec. 8, 2020). The story summarizes the […]

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A Link To My Articles At Tax Analysts

November 20, 2020

by Monte A. Jackel

I am attaching a link to my articles and letters at Tax Analysts (which is behind a paywall). https://www.taxnotes.com/document-list/contributors-authors/jackel-monte-0?esq%3D%26from%3D0%26size%3D250%26orderby%3Dsearchdate%26order%3Ddesc%26filterterm%3Dfulltext%26menu_type%3Dauthors%26tid%3D1364%26search_type%3Dtopic_page. https://jackeltaxlaw.com/wp-content/uploads/2020/10/Jackel_Monte_IN_450x255.png Thought it would be of interest.

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Potential Regulatory Projects For New Administration

November 16, 2020

by Monte A. Jackel

I thought the attached would be of interest. https://jackeltaxlaw.com/wp-content/uploads/2020/11/Potential-Regulatory-Projects.docx

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ENTITY LEVEL SALT TAXES ONCE AGAIN

November 12, 2020

by Monte A. Jackel

Notice 2020-75, issued a few days ago, held that the so-called SALT workarounds using state laws that allow the partners to cause the partnership entity to incur an entity level income tax with a credit at the partner level, are true entity level taxes and that the SALT limitation of section 164 as amended by […]

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A Principal Purpose Regs Over The Past Few Decades

October 26, 2020

by Monte A. Jackel

I am attaching a short write-up on the “a principal purpose” anti-abuse regulations generally. I thought this would be of interest. https://jackeltaxlaw.com/wp-content/uploads/2020/10/A-Principal-Purpose.docx.

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A Thank You To Tax Analysts and to Eric Sloan

October 9, 2020

by Monte A. Jackel

I wanted to thank Tax Analysts for both helping to promote me and for its assistance and support over the years. I also wanted to personally thank Eric Sloan of Gibson Dunn for the quote he gave them. Eric is a true professional. Please see this link for a promotional ad by Tax Analysts for […]

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Procedurally Taxing Blog Post By Me On Guaranteed Payments and the Validity of Tax Regulations

by Monte A. Jackel

This blog post from the Procedurally Taxing blog site discusses the guaranteed payment as interest issue in the context of how to challenge the validity of tax regulations. I thought it would be of interest. https://procedurallytaxing.com/consistency-and-the-validity-of-regulations/

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Inconsistent Treatment Of Guaranteed Payments As Interest Expense

October 2, 2020

by Monte A. Jackel

Guaranteed payments resemble interest expense under section 163 but those payments are not, as a technical matter, interest on actual indebtedness. Recent IRS regulations have treated guaranteed payments inconsistently. Below is the substance of a letter to the editor that I will be publishing in Tax Notes next Monday. Text Of Substance Of Letter: How […]

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AICPA Comments On IRS Negative Tax Capital Reporting

September 19, 2020

by Monte A. Jackel

The AICPA recently released a comment letter it sent to the IRS on the tax basis negative capital proposed reporting regime.https://aboutbtax.com/TbQ. 1. The purpose of this reporting regime, as I understand it, is to ensure that a partner reports the recapture of the excess of his share of debt over his tax basis when a […]

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New S Corporation Case And The Check-The-Box Regulations

by Monte A. Jackel

This case came out today. https://www.ustaxcourt.gov/USTCInOp2/OpinionViewer.aspx?ID=12322.  1. It deals with whether a controlling person of a Kentucky not for profit corporation was an S corporation shareholder.  2. I do not disagree with the holding of the court, which seems very apparent; beneficial ownership, a proprietary interest, is necessary to be a shareholder. 3. However, the mode […]

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Carried Interests Three Part Article

September 5, 2020

by Monte A. Jackel

I am attaching the three part article I published in Tax Notes Today Federal, Tax Analysts, Fairfax, VA, on carried interests and the new section 1061 proposed regulations. https://jackeltaxlaw.com/wp-content/uploads/2020/09/Jackel-Carried-Interests-Combined-Article.pdf. It can also be found at this link from a recent LinkedIn post. https://www.linkedin.com/feed/update/urn:li:activity:6717385115091169280/. I thought it would be of interest.

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Part Two Of Carried Interests Article In Tax Notes

August 22, 2020

by Monte A. Jackel

Part two of my three part article on the section 1061 proposed regulations in Tax Notes is out today. Here is a link. Tax Notes Article . It is behind Tax Analysts’ paywall. I thought it would be of interest.

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New Carried Interests 1061 Article

August 15, 2020

by Monte A. Jackel

Tax Notes has published part one of a three part article by me on the proposed section 1061 regulations. Carried Interest Tax Notes article. Part two is scheduled for publication on August 24 and the final part on August 31. The article is behind the Tax Analysts paywall at present. I thought this would be […]

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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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