TAX 9900 Lecture Notes - Lecture 64: Ordinary Income
Document Summary
If guaranteed under 707(c)- item of income to partner w/o regard to income of pship, gives rise to ordinary income to recipient, and deduction to pship: or amount of expenses that might have to be capitalized. If t-action b/w partner and partnership, isolating partner, treating them diff, facts and circs- how are they acting: rules for 704(b), 707(c) and a, may give us very different answers. In every tax answer, timing and character- now, later, never, st, Lt, unrecaptured 1250 gain, depreciation recapture ordinary, gw: answer character for us, source is a third one for international tax. Distributive share: remember from first class and repeated several times, all tax issues generally revolve around: Regardless of whether actually paid to the partner: partners could recognize (and owe tax on) phantom income. These are not deductions for the partnership, so no capitalization requirements: character passes through to partners.
