Post by Sapphire Capital on Sept 22, 2008 20:36:14 GMT 4
Taxing Hot Asset Sales
Karen C. Burke
University of San Diego School of Law
Florida Tax Review, Vol. 8, No. 3, 2007
San Diego Legal Studies Paper No. 08-073
Abstract:
The Article comments on I.R.S. Notice 2006-14 which proposes to simplify and rationalize the collapsible partnership rules of section 751(b). It concludes that the proposed hot asset sale approach represents much needed improvement of section 751(b) but suggests that the Treasury should also consider more fundamental reform that would treat a nonprorata current distribution as a partial liquidation. The Article also explores the relationship between sections 734(b) and 751(b), focusing on the 1954 ALI proposals and Professor Andrews' more recent proposals concerning hot asset distributions and mandatory basis adjustments. The Article is an outgrowth of the author's work as a member of the ABA taskforce on section 751(b).
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1236802_code254274.pdf?abstractid=1236802&mirid=5
Karen C. Burke
University of San Diego School of Law
Florida Tax Review, Vol. 8, No. 3, 2007
San Diego Legal Studies Paper No. 08-073
Abstract:
The Article comments on I.R.S. Notice 2006-14 which proposes to simplify and rationalize the collapsible partnership rules of section 751(b). It concludes that the proposed hot asset sale approach represents much needed improvement of section 751(b) but suggests that the Treasury should also consider more fundamental reform that would treat a nonprorata current distribution as a partial liquidation. The Article also explores the relationship between sections 734(b) and 751(b), focusing on the 1954 ALI proposals and Professor Andrews' more recent proposals concerning hot asset distributions and mandatory basis adjustments. The Article is an outgrowth of the author's work as a member of the ABA taskforce on section 751(b).
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1236802_code254274.pdf?abstractid=1236802&mirid=5