Location of Repository

Determining a Partner\u27s Share of Unrealized Receivables at the Liquidation of the Partner\u27s Interest

By Stephen Utz

Abstract

Partnership law allows partners great freedom to vary the terms on which they share partnership profits from different sources. Partnership tax law, however, seems to presume, for purposes of the collapsible partner rules, that partners will share the revenue from the collection of receivables always in proportion to the value of their partnership interests. This counterfactual presumption exposes both the government and partner/taxpayers to unfortunate consequences. A substance-over-form approach to the attribution of unrealized receivables would certainly be unworkable, because too costly and intrusive to administer. Something between substance-over form and form-over-substance would best implement the policy of Subchapter K ? an approach modeled on that of the section 704(b) regulations. There is, unfortunately, insufficient legislative authority for the regulatory adoption of such an approach

Topics: partnership, tax law, unrealized receivables, profits, Partnerships, Taxation, Business Organizations Law, Taxation
Publisher: NELLCO Legal Scholarship Repository
Year: 2000
OAI identifier: oai:lsr.nellco.org:uconn_wps-1035
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://lsr.nellco.org/cgi/view... (external link)
  • http://lsr.nellco.org/uconn_wp... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.