Partnership OI vs. CG; Step Transaction; Gain Exclusion and Deferral

Webinar

This course is based on Steve Gorin’s 3rd quarter 2024 newsletter.

The debate over whether partnership income taxation follows an entity or aggregate approach remains unresolved. In Grecian Magnesite Mining v. Commissioner (2017), the court declined to look inside the partnership to determine the character of gain on the sale of a partnership interest. The same judge later limited the scope of Grecian Magnesite in Rawat v. Commissioner (T.C. Memo. 2023-14). In July 2024, the Court of Appeals for the D.C. Circuit reversed the Tax Court's decision, further solidifying the entity approach from Grecian Magnesite. We will review both Rawat cases.

Additionally, step transaction and economic substance doctrines have seen recent litigation, which we will explore.

Lastly, we will also review the IRS rulings on gain deferral and exclusion, particularly focusing on trusts completing Code § 1031 like-kind exchanges, and summarize recent developments related to Code § 1202, which allows the exclusion of gain from the sale of qualified small business stock.

CLE
The live presentation of this webinar was approved for 1.5 hours of general CLE credit in California, Illinois, and Texas; 1.8 hours of general CLE credit in Missouri; and 1.5 hours of professional practice CLE credit in New York. Please visit the CLE Overview page to see how the CLE credit for this recorded webinar can be applied in CA, IL, MO, NY, & TX. 

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Presenters:
Steve Gorin

For technical materials supporting the slides, please see Steve's newsletter.