Thus, the IRS and the courts may consider a cotenancy to be a partnership for tax purposes if the business activity of the cotenancy resembles a partnership.
761(a) election, to be excluded from tax treatment as a partnership provided that the cotenancy is for investment purposes and not for the active conduct of a business.
Moreover, those unusual cases that require more time can often be identified from analysis of the cotenancy circumstances and cotenant profiles.
In order for an appraiser to better understand the influence of partitioning on partial interest value, it is necessary to become familiar with the legal process of partitioning in that jurisdiction, review case studies and interview experienced attorneys, study the circumstances of the cotenancy to understand what complications might arise, and review profiles of the individual cotenants to gauge how they might react to a partition suit.
Our recommendations had their genesis in our 1985 ACC study of cotenancy, but the basic idea--a cotenacy property right system--was substantially extended and tailored to fit the special physical properties of electric power flows in interconnected alternating current (AC) networks.
We proposed that these characteristics of the electricity industry be supported by a property right regime with the following commensurate features when the system is privatized as a joint (competitively ruled) venture, or cotenancy, owned by all users.
56) The defendants, relying on rationale similar to Kolb, argued that the adverse possession claim could not be maintained until 1992, twenty years after the death of their father and the creation of the cotenancy.
112) Sidestepping an interpretation of section 41-a, the court determined, based on common law ouster, that the possessing cotenant's actions were so contrary to the cotenancy that they warranted a determination of adverse possession.
is "a tenancy under more than one distinct title, but
sovereign trustees having cotenancy
interests in a shared asset (such as
30) As a result, taxpayers should independently analyze whether a Code [sections] 761(a) election will produce the particular advantages of a tax cotenancy
that they seek.
The statute actually makes adverse possession easier in cotenancy
cases by eliminating the need for a cotenant to give actual notice of exclusive possession to non-occupying cotenants.