Partnership terminated in year assets were distributed even though other assets were retained as a preserve against potential claims

Article Abstract:

In an unpublished opinion, the 6th Circuit in Goulder v. US (1995) addressed the issue of whether a partner could claim a capital loss on the dissolution of a partnership even if funds were retained as a reserve against potential claims. The appeals court ruled that there is no per se rule that the mere retention of certain assets or management of particular activities in anticipation of liabilities amounts to a continuation of a partnership.

Cases, Federal courts

---

Recent cases and rulings

Article Abstract:

Contemporary taxation cases and decisions involving partnerships are presented. Among the cases include a bankrupt partner's discharge of a partnership recourse debt share, a partner's sale of a partnership interest to another with a hold harmless agreement, a tax shelter partnership extended due to intent to evade tax exhibited by signing partner, and the waiver of right to contest validity of partnership's waiver of statute of limitations.

Interpretation and construction, Taxation, Partnership, Articles of partnership

---

Tax consequences of a Bankrupt Partner's Discharge of His Share of Partnership Recourse Debts

Article Abstract:

The court ruled that a payment liquidating a promissory note and the interest of a partner in the partnership is deemed to be a distribution.

Extinguishment of debts, Debt cancellation, Laws, regulations and rules, Montana

Similar abstracts:

• Abstracts: Unit trusts maintain best-seller status. The funds that pick the best of the rest. The best endowed
• Abstracts: Fall-out over bosses pensions. Where there are people, there are pensions
• Abstracts: Final Section 731(c) Regulations on distributions of marketable securities favor taxpayers. Proposed regulations clarify rules on distributions of marketable securities
• Abstracts: One-time cash flow announcements and free cash-flow theory: share repurchases and special dividends. Tests of the relations among marketwide factors, firm-specific variables, and stock returns using a conditional asset pricing model
• Abstracts: Earnings disclosures and stockholder lawsuits. What motivates manager's choice of discretionary accruals? Are disclosures about bank derivatives and employee stock options 'value-relevant?' (response to articles by Venkatachalam, p.327 and Aboody, p.357, in this issue)

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.