In the Technical Correction Act of 1988, Congress amended sections 301(b) and 301(d), as part of a deadwood clean-up measure, to provide that the amount of a distribution and the basis in the hands of the
distributee would simply be fair market value.
The name, mailing address, and telephone number ot toe
distributee and
distributee's attorney is set out below.
1.732-1(d)(4), combined with the practical difficulty of knowing factually whether the FMV of all partnership property (other than money) exceeded 110% of its adjusted basis to the partnership at the time the
distributee partner acquired its transferred partnership interest (which could have occurred many years back), may make complying with the regulation a difficult task.
The earnings portion was nonetheless includible in the gross income of the
distributee, not the beneficiary.
The regulations give the example of stock of a subsidiary that is distributed to an upper-tier member in a transaction to which section 355 applies.(22) Under section 358, the basis of the distributed stock in the hands of the
distributee is determined by reference to the distributor's stock.
The name, mailing address, and telephone number of the
distributee and
distributee's attorney is set out below.
As the example demonstrates, when a partnership distributes an asset to multiple
distributee partners in a partnership division, the method used to allocate the asset's basis can lead to very different results.
704(c)(1)(B) rules, the
distributee member's basis in the distributed property is the LLC's basis in the property immediately before the distribution increased by any gain recognized by the contributing member or decreased by any loss recognized by the contributing membet The contributing member's basis in his or her LLC interest is also increased or decreased to reflect the recognized gain or loss (Regs.
The name and mailing address of the
distributee's attorney is Bryan P Christian, PA., 102 Country Club Parkway, Ste.
If a plan provides each
distributee with an explanation of the default procedure and the rollover option within the specified period of time, then the IRS considers the requirement of IRC section 402(f) to be satisfied.
* The benefits and burdens of ownership of partnership property are in substantial part shifted to a
distributee before or after property is actually distributed.
If the
distributee shareholder is a CFC, the deemed dividend is foreign personal holding company income without regard to the same country exception of section 954(c)(3)(A)(i).
