Insurance Payable to Partnership (Funded Buy-Out) 4. Judicially Created IRD Working Papers Table of Worksheets Worksheet 1 Excerpts from House Ways and Means Committee Report to H. Worksheet 5 Section 737 - Recognition of Precontribution Gain in Case of Certain Distributions To Contributing Partner (As Added by the Energy Policy Act of 1992) (P. 102–486)] Worksheet 6 Omnibus Budget Reconciliation Act of 1993 Conference Report Section 13262 - Modify Special Treatment of Certain Liquidation Payments (P.
Payments for Goodwill (1) Post January 5, 1993 Withdrawals (2) Payments For Goodwill For Which 736(b)(2) Applies 2.
Part I, Introduction, briefly discusses important general principles not directly related to distributions, but that will nevertheless frequently be referred to throughout the Portfolio, including partnership capital accounts, §704(c) and reverse §704(c) allocations. Basis of Property Received in a Current Distribution 1.
Part I then addresses the vexing question of distinguishing a partner withdrawal from sale of a partnership interest (which are considered in more detail in 718 T. Partnerships — Disposition of Partnership Interests or Partnership Business; Partnership Termination). Distribution of Marketable Securities (1) In General (2) Definition of Marketable Securities (3) Exceptions (a) Marketable Securities Contributed By Distributee Partner (b) Securities Not Marketable When Acquired By Partnership (c) Securities Acquired In a Nonrecognition Transaction (d) Anti–Stuffing Rule (4) Distribution By Investment Partnership (a) Investment Partnership (b) Eligible Partner (5) Limitation on Gain (6) Basis Rules (a) Basis of Distributed Securities (b) Partner's Basis in Partnership and Partnership's Basis in Other Assets (7) Character of Gain Recognized (8) Anti–Abuse Rule 2. Ordering Rules - Liabilities Assumed and Relieved D.
Further complication arises because the “tax” partnership includes not only entities organized as general partnerships or limited partnerships (“LP”) under state law, but also the newer forms of limited liability partnerships (“LLP”), initially primarily for professionals, and the increasingly popular limited liability company (“LLC”). Adjustment to Partnership's Basis in Assets Under 734(b) 1.
The newer forms, particularly the LLC, have many more entity characteristics, particularly when full advantage of the freedom to contract that is part of the latest revisions of the governing statutes in most commercial states is taken into account, so that it is hard to distinguish them from corporations.