A History and Analysis of the Co-Ownership-Partnership Question

29 Pages Posted: 30 Aug 2006

See all articles by Bradley T. Borden

Bradley T. Borden

Brooklyn Law School

Sandra Favelukes O'Neill

Foley, Hoag, and Eliot, LLP

Todd E. Molz

Munger, Tolles & Olson, LLP

Abstract

The use of interests in syndicated tenancy-in-common arrangements as replacement property for section 1031 exchanges attaches new significance to the question of when a co-ownership arrangement should be treated as partnership for federal tax purposes (the co-ownership-partnership question). This Article examines the history of partnership taxation and the authority that addresses the co-ownership-partnership question. The examination reveals that there is considerable confusion in this area, including an ambiguous overlap between the check-the-box rules and the rules governing when a partnership can elect out of subchapter K. Finally, the Article recommends that the IRS provide guidance that will more clearly define the term separate entity in the section 7701 regulations.

Keywords: partnership taxation, tax partnership, check-the-box regulations

Suggested Citation

Borden, Bradley T. and Favelukes O'Neill, Sandra and Molz, Todd E., A History and Analysis of the Co-Ownership-Partnership Question. Tax Notes, Vol. 106, p. 1175, March 7, 2005, Available at SSRN: https://ssrn.com/abstract=927329

Bradley T. Borden (Contact Author)

Brooklyn Law School ( email )

250 Joralemon Street
Brooklyn, NY 11201
United States

HOME PAGE: http://www.brooklaw.edu

Sandra Favelukes O'Neill

Foley, Hoag, and Eliot, LLP ( email )

155 Seaport Boulevard
Boston, MA 02210-2600
United States

Todd E. Molz

Munger, Tolles & Olson, LLP ( email )

355 South Grand Avenue
35th Floor
Los Angeles, CA 90071-1560
United States

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