Multi-tier partnership and loss limitations

Technical topics regarding tax preparation.
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Section 704(d) provides that a partner's distributive share of partnership losses may be deducted only to the extent of the adjusted basis of its partnership interest (before adjustment for losses) at the end of the partnership year in which the losses occurred.

I am having a hard time determining how this applies in a multi-tier partnership. Which limits are we looking at - the lower tier ? The upper tier ? Both ??

Say we have a holding partnership H that holds interest in two lower-tier partnerships, A and B.

Say partnership A has an adjusted basis of 20 and generates a loss of 50. Partnership B has an adjusted basis of 30 and generates no income nor loss. Partnership H has an adjusted basis of 50 and a total loss of 50 (no activity besides A and B).

What would be the loss allowable before applying the other limitations here - 20, because of the basis in A ? Or 50, because of the basis in H ?

Conversely, let's say H has a basis of 20, A a basis of 50, and B a basis of 0 (we can assume there were activities in H that did not come from A or B and generated extra reductions in basis). A generates a loss of 50.

Is the entire 50 allowable, because A's basis is 50 ? Or, is it limited to the 20 that is H's basis ?

I am voluntarily simplifying the examples so that my question can be illustrated.

Thank you !
 

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