Proposed regulations - Partnership guidance concerning contributed loss property, mandatory basis adjustments, other issues 

January 15:  The Treasury Department and IRS today released for publication in the Federal Register proposed regulations (REG-144468-05) concerning contributed loss property, mandatory basis adjustments and miscellaneous provisions of the American Jobs Creation Act of 2004 (the 2004 JOBS Act) and other legislation.

The proposed regulations:

  • Provide guidance on certain provisions of the 2004 JOBS Act and conform the regulations to statutory changes in the Taxpayer Relief Act of 1997.
  • Modify the basis allocations rules to prevent certain unintended consequences of the current basis allocation rules for substituted basis transactions.
  • Provide additional guidance on allocations resulting from revaluations of partnership property.

Read the 110-page proposed regulations [PDF 220 KB]

These regulations are generally proposed to apply to partnership contributions and transactions occurring on or after the date final regulations are published in the Federal Register. The proposed regulations under Reg. section 1.755-1(b)(5) will apply to transfers of partnership interests occurring on or after January 16, 2014 (the date when the proposed regulations will appear in the Federal Register).

Comments are due 90 days after January 16, 2014. A public hearing is scheduled for April 30, 2014.

Read a January 2014 report [PDF 512 KB] about these regulations prepared by KPMG LLP.

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