Get Announcement 2005-11 - Section 707 Regarding Disguised Sales, Generally; Correction. This Document

Under the statute, if there is a direct or indirect transfer of money or other property by a partner to a partnership, and there is a related direct or indirect transfer of money or other property by the partnership to such partner (or another partner), and the transfers, when viewed together, are properly ... Partnership Disguised Sale Rules and Exception - Cherry Bekaert cbh.com https://.cbh.com › guide › articles › partnership-dis... cbh.com https://.cbh.com › guide › articles › partnership-dis...

Under the debt-financed distribution exception to disguised sale treatment, a distribution of cash to a partner in connection with a property contribution by such partner is not treated as a taxable sale to the extent that the cash is traceable to a partnership liability (incurred within 90 days of the distribution), ...

For purposes of this section, if within a two-year period a partner transfers property to a partnership and the partnership transfers money or other consideration to the partner (without regard to the order of the transfers), the transfers are presumed to be a sale of the property to the partnership unless the facts ...

The preformation capital expenditures exception generally does not treat the transfer of money by a partnership to a partner as disguised sale proceeds to the extent that the transfer is made to reimburse the partner for certain capital expenditures made within two years of the property contribution. Partnership Disguised Sale Rules May be Changing . . . Again kpmg.com https://assets.kpmg.com › dam › kpmg › pdf › 2017/12 kpmg.com https://assets.kpmg.com › dam › kpmg › pdf › 2017/12

§ 1.707-4 Disguised sales of property to partnership; special rules applicable to guaranteed payments, preferred returns, operating cash flow distributions, and reimbursements of preformation expenditures. (a) Guaranteed payments and preferred returns—(1) Guaranteed payment not treated as part of a sale—(i) In general.

2 In general, the anti-mixing bowl provisions require the mixing bowl partnership to hold the contributed assets for a minimum of seven years — which may seem like an eternity to partners looking to separate. However, in appropriate circum- stances, that period may be reduced significantly.