![]() When the books of the partnership are left open, holding the notes is considered part of the trade or business of the partnership and, therefore, the partnership is not terminated (see Baker Commodities, 48 T.C. The courts have focused on the beginning phrase "no part." Interpreting this literally, they have gone so far as to state that a partnership is not terminated even though its sole assets are notes receivable arising from the sale of the partnership assets ( Foxman, 41 T.C. 708(b)(1)(A) if no part of any business, financial operations, or venture of the partnership is carried on by any of its partners in a partnership. Avoiding Discontinuation of a Partnership's BusinessĪ partnership is terminated under Sec. This column focuses on what happens when the partnership's business activities cease. 708(b)(1)(B), which may not involve discontinuation of the partnership's business. The second prong involves technical terminations under Sec. 708 termination rules provides that the termination of a partnership is triggered if (1) the partnership ceases all business activity or (2) the business of the partnership is no longer carried on in partnership form.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |