IRS Proposes Rules On Partnership Loss Transfers

Law360, New York (January 15, 2014, 2:59 PM EST) -- The Internal Revenue Service released proposed regulations Wednesday addressing how property with built-in losses should be treated when transferred between members of a partnership.

Individuals in a partnership may contribute property that has built-in gain or losses to the partnership, but the Internal Revenue Code prevents them from transferring the built-in gain or losses to other partners. The proposed regulations, which are scheduled to be published in Thursday's Federal Register, are meant to provide further guidance explaining the scope of the transfer prohibition, and proper tax...
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