In Uncategorized on 08/13/2021 at 15:10

Subchapter K furnishes enough materials for abstruse reasoning to satisfy the most over-caffeinated quibbler. So today I invoke the famous hamburger ad (“have it your way”), as does Judge Morrison in Bethany MD Holdings Group, LLC, Core Realty Holdings, LLC, Tax Matters Partner, Docket No. 19802-18, filed 8/13/21.

I most sincerely doubt too many of my readers have lost much shut-eye over the issue of which Judge Morrison disposes so handily.

I’ll step aside and let Judge Morrison tell the story.

“…petitioner filed a motion for partial summary judgment in which petitioner took the position that a distribution triggering a section 734(b) basis adjustment under section 734(b)(1)(A) does not require the basis adjustment to match the amount of gain reported on the distributee partners’ tax returns.” Order, at p. 1.

Well, IRS doesn’t object, so Judge Morrison grants Bethany MD partial summary J.

And sends the parties off to work out their remaining issues in fear and trembling.

But I wish Judge Morrison had clarified his Order with a reference to Reg. Section 1.734-2(b)(1) and the example therein. That makes it clear that the partnership’s basis is computed per the statute, whatever the transferee recognizes or doesn’t recognize.








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