Partnership Tax Professor Holz Spring Semester 2016 Syllabus

Transcription

1 Partnership Tax Professor Holz Spring Semester 2016 Syllabus Required Materials: Richard Lipton, Paul Carman, Charles Fassler, & Walter Schwidetzky, Partnership Taxation (3rd Ed. 2012) Federal Income Tax Code and Regulations: Selected Sections Dickinson, Editor (CCH), or its equivalent. Current version. The Text and the Code and Regulations must be brought to each class. Recommended Materials: Cunningham & Cunningham, The Logic of Subchapter K, (4th Ed.) Other Useful Resources: McKee, Nelson, Whitmire, Federal Taxation of Partnerships and Partners BNA, Tax Management Portfolios Course Description: This course will cover the fundamentals of Federal partnership taxation. We will consider the tax consequences of partnership formation, operations, and allocations; transactions between partners and partnerships; sales and exchanges of partnership interests; operating distributions; and liquidating distributions and partnership terminations. In addition, we will also discuss the exchange of services for partnership interests and a variety of anti-abuse provisions found in Subchapter K.

2 Grading: Grades will be determined by an in-class exam and classroom participation/performance as follows: Attendance: Final Exam 90% Classroom Participation/Performance 10% You are allowed a maximum of two (2) absences. Each additional absence may result in a reduction of your grade to the next lower grade (e.g., from a B to a B-). Initialing the attendance roster certifies attendance during the entire class session. If for any reason you will miss part of the class, you need to inform me prior to departing or signing the attendance sheet, so that an appropriate adjustment can be made. Failure to be prepared for class may be counted as an absence. Final Exam: You will be allowed to bring your Code and Regulations, and a calculator. You may not bring any other materials to the exam. Prohibited materials include, but are not limited to: other books; individual notes and outlines; and commercial outlines. You are permitted to annotate your Code and Regulations by making relevant notes in the text and margins of the sections that you study in this and other classes. You will also be permitted to use the front and back cover for notes. However, no other pages may be annotated. If you have questions, please ask, rather than risk a violation of the honor code. Contact Information: My office phone number is (614) and my is richard.holz@icemiller.com. Feel free to call, or with questions. Cell Phones: For the comfort and convenience of your fellow students, please turn off all cell phones and pagers prior to entering class. If there is an urgent reason that you must leave your phone or pager on for one class, please notify me before class.

3 Partnership Tax Professor Holz Spring Semester 2016 Assignments (Subject to Change) Week 1 Week 2 Week 3 1. Introduction Text: skim Defining Partnerships and Partners For Tax Purposes: Chapter 1 Text: Code: 761, 7701(a)(2), 7701(i), Regs: (a), (b) and (c), through 4(d), Proposed Reg (a)(5) Cases: Comm r v. Culbertson, 337 U.S. 733 (1949) Madison Gas & Electric Co. V. Comm r, 72 T.C. 521 (1979) Other: Rev. Proc Problems: 1, 2 (skip part c), 3, 5, 7, 9, 10, 11, 12, 13 Formation of the Partnership: Chapter 2 Text: Code: 108(e)(8)(b), 709, 721, 722, 723, (1), 1223(2) Regs: (b)(2), (b)-(c), , , (b), (f) Cases: Otey v. Comm r, 70 T.C. 321 (1970), aff d per curiam 634 F.2d 1046 (6th Cir. 1980) Other: Rev. Rul , CB 157 Rev. Rul. 99-5, CB 434 Problems, 1-4 Outside Basis and Allocation of Liabilities: Chapter 3 Text: Code: 702(a)(4), 704(d), 705, 722, 731, 732, 733, 752 Regs: (a)(1), , (a)(1)(ii), , , , , Other: Rev. Rul , CB 166 Rev. Rul. 94-4, CB 195 Rev. Rul , CB 132 Rev. Rul , CB 138 Rev. Rul , CB 140 Problems: 1-6

4 Week 4 Operation of the Partnership: Calculation of Partnership Taxable Income: Chapter 4 Text: , , skim Code: 108(d)(6), 108(e)(8)(B), 444, 447, 448, 464, 701, 702, 703, 704(d), 705, 706(d), 724, 7519 Skim 465, 469 Regs: T, , (d), (b) Cases: United States v. Basye, 410 U.S. 441 (1973) Other: Rev. Rul , CB 216 Problems: 1, 2, 5, 6, 7 Week 5 Week 6 Week 7 Operation of a Partnership: Allocation of Partnership Income and Loss: Chapter 5 Section 704(b) Text: Code: 704(b) Regs: (b)(1)(i), (iii), (iv), 1(b)(2)(i)-(iii), (iv)(a)-(e), (h), (n), (p), (q), (1)(b)(3), 1(b)(5) examples 1-8, 15(i), (e) Other: Rev. Rul , CB 69 Rev. Rul , CB 506 Problems: 1-4 Operation of a Partnership; Allocation of Partnership Income and Loss: Chapter 5 (Continued) Partners Interest in the Partnership; Allocation Structures; Section 704(b) (Continued) Text: Code: 705, 706(d)(1) Regs: (b) Problems: 5-13 Operation of a Partnership: Allocation of Partnership Income and Loss: Chapter 5 (Continued) Section 704(c) Text: Code: 704(a), (c)(1)(a), (3), 724

5 Reg: (a)(1)-(5), (10), (b), (c), (d), (e)(1), (b)(1)(vi)(d)(1), (3), (b)(2)(iv)(f), (b)(4)(i), (b)(5) examples 14(i)-(iv) Problems: Week 8 Operation of a Partnership: Allocation of Partnership Income and Loss: Chapter 5 (Continued) Week 9 1. Nonrecourse Deductions Text: Regs: (b)-(e), (f)(1)-(3), (6), (7) Example 1, (g)-(j), (m) examples 1(i)-(iv), (vi)-(viii), 3(i) Problem: Changes in Partnership Interests During the Tax Year Text: Code: 704(c)(2)(b), (d) Regs: (c)(1), (2), (4) Problem: 19 Partnership Agreements: provided. Discussion Draft of Partnership Agreement to be Week 10 Disposition of Partnership Interests: Chapter 6 Text: Code: 357, 706, 708, 741, 743(b), 743(d), 751(c), 751(d), 752(d), 754, 755, 761(e) Regs: (c)(3), , , (a), , , , (c), , (b), Other: Rev. Rul , CB 80 Rev. Rul , CB 386 Rev. Rul , CB 159 Rev. Rul , CB 88 Rev. Rul , CB 100 Rev. Rul , CB 215 Rev. Rul , CB 230 Problems: 1-4, 8, 10, 11

6 Week 11 Week 12 Week 13 Partnership Distributions: Chapter 7 1. Nonliquidating Distributions Text: Code: 731, 732(a), (c)(1), (3), (d), 733, 735, 1245(b)(6) Regs: (a)(1), (3), (c), -2, (a), (c), (d), , , (f)(2), (3), (b)(2)(iv)(e)(1) Other: Rev. Rul. 94-4, CB 196 Problems: Section 734(b) Code: 731(b), 734, 754, 755, 1245(b)(3) Regs: (a), (c) Problem: 3 Partnership Distributions: Chapter 7 (continued) 1. Section 751(b) Text: Code: 731(d), 732(e), 751(b) Regs: (b)-(e), (g) example 2 Cases: Ledoux v. Comm r, 77 TC 293, aff d per curiam 695 F.2d 1320 (11th Cir. 1983) Other: Rev. Rul , CB 223 Rev. Rul , CB 119 Notice (February 21, 2006) 2. Liquidations Text: Code: 708(a), (b)(1), 731(a)(2), 732(c)(2), 761(d), (e)(1), 736 Regs: (a), (b), (a)(2), (b), (c), Cases: McCauslen v. Comm r, 45 TC 588 (1966) Other: Rev. Rul. 99-6, CB 432 Rev. Rul , CB 130 Rev. Rul , CB 239 Problem: 4 Transactions Between Partner and Partnership; Issuance of a Partnership Interest for Service: Chapter 8 Text: Code: 83, 707, 267

7 Regs: , , , , , , Prop. Reg Cases: Pratt v. Comm r, 64 TC 203 (1975), aff d in part, rev d in part 550 F.2d 1023 (5th Cir. 1977) Other: Rev. Rul , CB 143 Rev. Rul , CB 144 Notice , I.R.B Problems: 1-6 Week 14 Week 15 Business Combinations: Partnership Mergers and Divisions: Chapter 9 Text: Code: 708 Reg: (c), (d) Other: Rev. Rul , CB 842 Problems: 1-8 Anti-Abuse Provisions: Chapter 13 Text: Code: 707(a)(2)(B), 707(c)(1)(B), 737, 731(c), 707(a)(2)(A) Reg: , , -4, -5 and -6, Other: Rev. Rul , C.B. 842 Problems: 2 and 3