Disguised Sale Rule Reversal: Using Leveraged Partnerships to Defer Gain on Debt-Financed Distributions
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers to partnerships with practical guidance to using leveraged partnership structures to allow partners to extract equity from appreciated partnership interests and property in a tax-deferred manner. The panelist will discuss recent IRS guidance reversing 2016 regulations that restricted leveraged partnership distributions under the "disguised sale" rules, and detail the tax planning and reporting implications of distributions from leveraged partnerships.
- 2016 temporary and proposed regulations and impact on leveraged partnerships
- Section 707 disguised sale rules
- Distinguishing recourse from nonrecourse debt
- New proposed regulations reversing the 2016 rules
- Applying the "economic risk of loss" analysis to the allocation of partnership debt for purposes of Section 707
- Retention of 2016 rules restricting "bottom dollar payment obligations"
- Restoring planning opportunities with leveraged partnerships
The panelist will discuss these and other relevant topics:
- Distinguishing recourse from nonrecourse partnership debt
- The impact of the new regulations on everyday business transactions, such as leveraged partnerships and asset drop-down transactions
- Allocating debt based on the economic risk of loss to contributing partner
- What parts of the 2016 rules do the new proposed regulations reverse, and which parts do they keep?
Professor Bradley T. (Brad) Borden
Professor of Law
Brooklyn Law School
Professor Borden’s research, scholarship, and teaching focus on taxation of real property transactions and... | Read More
Professor Borden’s research, scholarship, and teaching focus on taxation of real property transactions and flow-through entities (including tax partnerships, REITs, and REMICs). He teaches Federal Income Taxation, Partnership Taxation, Taxation of Real Estate Transactions, and Unincorporated Business Organizations, and he is affiliated with the Dennis J. Block Center for the Study of International Business Law. His work on flow-through and transactional tax theory appears in articles published in law reviews including Baylor Law Review, University of Cincinnati Law Review, Florida Law Review, Georgia Law Review, Houston Law Review, Iowa Law Review, Tax Lawyer, and Virginia Tax Review, among others. His articles also frequently appear in leading national tax journals including Journal of Taxation, Journal of Taxation of Investments, Real Estate Taxation, and Tax Notes.Close