Court and IRS Differ on Partnership Liabilities
Article Abstract:
When figuring liability in federal income tax, a partner considers his distributive portion of corporate losses and deducts losses on an adjusted basis. Excess losses can be taken as deductions at the close of the partnership year during which the loss took place. Adjusted basis computation considers shares of certain partnership liabilities. The allocation of a certain share to a certain partner becomes most important. Recent court opinions on the issue have been contradictory as to the handling of nonrecourse debt when guaranteed by general partners. Regulatory provisions for these deductions are analyzed. Limited partners are prohibited from deducting partnership losses stemming from the funds of recourse lending. Where nonrecourse losses are involved, partners should be able to deduct losses of about the same percentage as their profit sharing ratio. Tax planners have tried to get around the recourse distinction, using nonrecourse lending from a general partner. The Raphan case, in instance of this theory, is analyzed.
Publication Name: National Real Estate Investor
Subject: Real estate industry
ISSN: 0027-9994
Year: 1984
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Adopt-a-school: a partnership for our children's future
Article Abstract:
The Ohio Dept of Development, the Columbus Chamber of Commerce and the Mifflin International Middle School forged the Adopt-A-School program where department and chamber employees orient students on foreign language and culture and tutor eight graders for the nint grade profieciency exam. The program also exposes the students to the business world. Adopt-A-School hopes to enhance the students' self esteem and discover the importance of learning.
Publication Name: Site Selection
Subject: Real estate industry
ISSN: 1080-7799
Year: 1993
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Tax Court rules PALs incurred in earlier C corporation years may not be used in S corporation year
Article Abstract:
The Tax Court in St. Charles Investment Corp. v. Commissioner determined that an IRC Subchapter C corporation's election to become a Subchapter S corporation results in no carryover of previously incurred passive activity C corporation losses. The court analyzed the language and policy behind sections 1371(b) and 469. The holding correctly interprets and implements the policy behind the IRC's separate C and S corporation provisions.
Publication Name: Journal of Real Estate Taxation
Subject: Real estate industry
ISSN: 0093-5107
Year: 1998
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- Abstracts: The Americans with Disabilities Act: concerns for lenders, owners, and tenants. The complexity of compliance with the ADA
- Abstracts: Northern Forest Act paves for major land acquisition. Mediating land use disputes. Restrictive practices
- Abstracts: The Ruhr renaissance: an environmental super project. Environmental liabilities: understanding your CFO's questions and concerns
- Abstracts: Northern New Jersey. Computerized data bases: a new day dawns for the facility planning process. Before the games end:sports facility development and the New York-New Jersey metropolitan area
- Abstracts: Computerized data bases: a new day dawns for the facility planning process. Developers must be diligent in reviewing fees under amended Pennsylvania municipalities planning code