Partner Sheldon Banoff will present his paper on "Identifying Partner's Interests in Partnership Profits Capital: Opportunities, Traps and Uncertainties," and will be the lead panelist on this topic on November 11 at 9:00 a.m.
An increasingly large patchwork of Internal Revenue Code provisions and regulations determine "relatedness" by reference to the ownership percentages of a partner's interest in partnership profits and/or capital. Meeting (or failing to meet) the requisite percentage interests can have profound tax consequences (inside and outside Subchapter K), effecting all types of partners and partnerships. Absent meaningful guidance, how should each partner's interest in profits and capital be measured, particularly given today's sophisticated partnership and LLC arrangements? What traps and planning opportunities exist? Should a uniform approach be adopted? Does the corporate regime for determining "relatedness" provide a viable alternative approach?
Mr. Banoff's paper will be published in the March 2007 issue of Taxes magazine.