Abandonment of partnership interest allowed as ground for loss deduction
Article Abstract:
Echols versus Comm'r concerns abandonment of partnership interest and deductibility of losses incurred. In 1976, the value of a real estate limited partnership's property decreased to less than the balance of the nonrecourse debt it secured. The taxpayer, a partner, offered his partnership interest to other partners but the offer was not taken. The property was foreclosed in 1977. The taxpayer claimed a loss for 1976, however, the Tax Court ruled that the loss should be deducted in the year of foreclosure. The Fifth Circuit court reversed the ruling, stating that a partner can abandon a partnership and claim losses provided that abandonment is shown by overt acts.
Publication Name: Journal of Partnership Taxation
Subject: Business
ISSN: 0749-4513
Year: 1992
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Information return preparer for limited partners is liable for penalties for negligent preparation of the partners' returns
Article Abstract:
A limited partnership's informational tax returns are organized by an information return preparer. There are cases when a preparer makes incorrect computations by overstating tax deductions and understating tax liabilities of limited partners' personal returns. In such cases, IRS regulations state that the preparer can be penalized for his negligence in computing limited partners' returns.
Publication Name: Journal of Partnership Taxation
Subject: Business
ISSN: 0749-4513
Year: 1992
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