Thought-provokinganalysis and opinion on federal tax issues

Category Archives: Partners and Partnerships

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 Regulatons

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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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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