Table Of Content

CUMULATIVE INDEX for VOLUME 8 This index includes all the material published in Volume 8 of Business Entities. References are to the issue number, page, and bi-monthly period of publication Bad Debts TAM Finds Value of Noncompensatory Stock International In PK Ventures, Tax Court Disallows Bad Debt Warrant Includable in Gross Income on Final Regulations for Determining Pro rata Share Deduction, by Steven |. Klein & Stephen Date of Issuance, by Steven |. Klein & of Subpart F Income, by Emebeth Demrew R. Looney, 8 BET 64, May/June 06 Stephen R. Looney, 8 BET 55, Sept./Oct. 06 8 BET 44, July/Aug. 06 Tax Court Holds Times Mirror's Disposition of Choice of Entities Interviews Bender Is Not a Qualified Reorganization by Tax Considerations in Choice of Entity Decision, Steven |. Klein & Stephen R. Looney, 8 BET Lee A. Sheppard, 8 BET 40, Jan./Feb. 06 by Mary A. McNulty & Michelle M 45, Jan./Feb. 06 Like-Kind Exchanges Kwon, 8 BET 28, May/June 06 Treatment of Basis of Redeemed Stock, by Cutting Timber by Related Exchanger Does Not Discharge of Indebtedness Steven |. Klein & Stephen R. Looney, 8 BET Trigger Grain Recognition Under Section 54, Sept./Oct. 06 Corporation Recognizes DO! Income on Con- 1031(f), by Steven |. Klein & Stephen R version of Convertible Preferred Securities Withdrawal of Proposed Regulations, by Steven Looney, 8 BET 60, Jan./Feb. 06 to Common Stock, by Stevén |. Klein & |. Klein & Stephen R. Looney, 8 BET 55, Limited Liability Companies Stephen R. Looney, 8 BET 58, May/June 06 Sept/Oct. 06 In re Enmann Il: Now You See It, Now You Don't, Compensation Planning Deductions by Thomas Earl Geu & Thomas E. Rutledge, GAO Critiques Cash Balance Plan Conversions The Domestic Production Activities Deduction— 8 BET 44, May/June 06 — And AAA Critiques GAO Right Back, by Part 1, by Tom Purcell, Robert A. Zarzar, & Building Stumbling Blocks: A Practical Take on Alvin D. Lurie. 8 BET 32 Mar./Apr. 06 George Manousos, 8 BET 3. Nov./Dec. 06 Charging Orders, by Jacob Stein, 8 BET 28, Proposed 409A Regulations—Part 1: Deferred Deferred Compensation Sept./Oct.06 Compensation Subject to Section 409A, by Valuation of Stock Rights Under Section 409A, by Losses Matthew A. Melone, 8 BET 18 (Jan./Feb. 06) Steven |. Klein & Stephen R. Looney, 8 BET Corporation May Not Deduct Loss on Expiration Proposed 409A Regulations—Part 2: Design 64, May/June 06 of Purchase Option Agreement, by Steven | and Operational Requirements, by Disregarded Entities Klein & Stephen R. Looney, 8 BET 60, Matthew A. Melone, 8 BET 4, Mar/Apr.06 May/June 06 Disregarded Entities Would Pay Their Own The Canaries Sing But They Sing Not to Thee, Employment and Excise Taxes Under Pro- Net Operating Losses by Alvin D. Lurie, 8 BET 20, Sept./Oct. 06 posed Regs, by Patrick Browne, Janet Jardin, AMT NOLs Are Offset by Regular Taxable Income Cooperatives & Carol Kulish Harvey, 8 BET 58, Mar./Apr. 06 in Years Prior to Enactment of Corporate Taking a Subchapter T Cooperative Public, by Exempt Organization’s Single-Member LLC Is AMT, by Steven |. Klein & Stephen R. Looney, Gerald V. Thomas || 8 BET 28 (Jan./Feb.06) Disregarded and Will Not Effect Tax-Exempt 8 BET 51, May/June 06 Status, by Patrick B rowne, Janet Jardin, & Corporations Ownership Change Under Section 382 Results Carol Kulish Harvey, 8 BET 60, Mar./Apr. 06 from Sale of Stock by One Brother to Anoth- Advances to CEO Treated as Loans Rather than IRS Denies Time Extension to Elect Treatment as er, by Steven |. Klein & Stephen R. Looney, as Constructive Dividends, by Steven |. Klein a Disregarded Entity, by Steven |. Klein & 8 BET 48, May/June 06 & Stephen R. Looney, 8 BET 49, Jan./Feb. 06 Stephen R. Looney, 8 BET 59, May/June. 06 Partnerships Corporation's Business of Providing Valuation Proposed Regs Clarify Eligibility for Foreign Tax Opinions Is Not a Consulting Service for Pur- Credit, by Carol Kulish Harvey, Janet Jardin, ABA Tax Section Comments on Assets-Over poses of Section 448(d)(2), by Steven I. Klein & Jill Robertson-Li, & Matthew J. Sullivan, 8 Partnership Mergers, by Lily Hoang, Carol Stephen R. Looney, 8 BET 52 May/June 06 BET 58, Nov./Dec. 06 Kulish Harvey, Alyson Outenreach, & Matthew J. Sullivan, 8 BET 55, July/Aug. 06 Court Rejects Taxpayer's Attempt to Rescind Proposed Regs Treat Disregarded Entities as Section 83(b) Election by Steven |. Klein & Regarded for Employment and Excise Taxes Application of Section 6695(d) Return Preparer Stephen R. Looney, 8 BET 47, Jan./Feb. 06 Purposes, by Steven |. Klein & Stephen R. Penalty Corporation’s Distributive Share of Final Regs Unchanged on Distributions of Stock Looney, 8 BET 59, Jan./Feb. 06 Partnership's Gross Receipts Do Not Con- stitute Passive Investment Income, by Steven From Qualified Trust for Purposes of Section Estate and Personal Planning |. Klein & Stephen R. Looney, 8 BET 56, 382 Ownership Change, by Steven |. Klein & Stephen R. Looney, 8 BET 53, Sept./Oct. 06 Individual income Tax Planning With a FLP/LLC, Jan./Feb. 06 by Reed W. Easton, 8 BET 24, Mar./Apr. 06 Comment Requested on Potential Changes to IRS Revokes 1974 “Zero-Basis” Ruling, by Patrick Browne, Janet Jardin, & Carol Kul- IRS Continues its Section 2036 Assault on Fam- Distributions Treated as Sales or Exchanges ish Harvey, 8 BET 52, Mar./Apr. 06 ily Limited Partnerships: Part 2, by Jerald Under Section 751(b), by Lily Hoang, Caro! Kul- David August, James Dawson, and Guy Max- ish Harvey, Jill Roberson-Li, & Matthew J. Sul- IRS Withdraws 2002 Proposed Regulations on field, 8 BET 6, Jan./Feb. 06 livan, 8 BET 56, July/Aug. 06 Treatment of Lost Basis, by Steven |. Klein & IRS Continues its Section 2036 Assault on Fam- Disguised Sales of Property to a Partnership, by Stephen R. Looney, 8 BET 54, Sept./Oct. 06 ily Limited Partnerships: Part 3, by Jerald Richard W. Harris, 8 BET 36, Mar./Apr. 06 Proposed Regulation’s Treatment of Basis of David August, James Dawson, Guy Maxfield, District Court Rules that Contingent Liabilities Redeemed Stock if Redemption is Treat- & Eugene F. Pollinguer, Jr., 8 BET 6, May/June Are Not Section 752 Liabilities and Invali- ed as a Dividend Distribution Under Sec- 06 dates Retroactive Application of Section 752 tion 301, by Steven |. Klein & Stephen R. Estate and Gift Regulations, by Carol Kulish Harvey, Janet Looney, 8 BET 54, Sept./Oct. 06 Jardin, Jill Robertson-Li, & Mathew J. Sulli- Regulation Requiring Cash Basis Accounting for Factors Considered in Satisfying Section 6166 van, 8 BET 50, Nov./Dec. 06 Active Trade or Business Requirement, by Interest Payment to Related Foreign Pay Steven |. Klein & Stephen R. Looney, 8 BET Donees’ Agreement to Pay Contingent Estate ee Ruled Valid, by Steven |. Klein & Stephen 52, Sept/Oct. 06 Tax on Partnership Interests Reduces Amount R. Looney, 6 BET 54, May/June 06 of Gift Tax, by Carol Kulish Harvey, Janet Financial Instruments Section 246A Did Not Limit Berkshire Hath Jardin, Jill Robertson-Li, & Matthew J. Sulli- away’s Dividends Received Deduction, by Hedge Funds - Structure, Regulation, and Tax van, 8 BET 52, Nov./Dec. 06 Steven |. Klein & Stephen R. Looney, 8 Implications: Part |, Structure and Regulation, FAA Provides Guidance on Calculating the BET 50, Jan./Feb. 06 by Jerald David August & Lawrence Cohen, Amount of Gross Income Omitted for Pur- 8 BET 14, July/Aug. 06 Split-off of Financial Services Business Did poses of Determining the Section 6501 Lim- Not Cause Corporation to Become Qual- Hedge Funds -— Structure, Regulation, and Tax itation on Assessments, by Lily Hoang, Carol ified PSC, by Steven |. Klein & Stephen R. Implications: Part 2, by Jerald David August Kulish Harvey, Alyson Outenreach, & Matthew Looney, 8 BET 51, May/June 06 & Lawrence Cohen, 8 BET 6, Sept./Oct. 06 J. Sullivan, 8 BET 54, July/Aug.06 INDEX November/December 2006 BUSINESS ENTITIES 63 Former Partner Cannot Claim Section 165 Deduc- The Alternate Test for Economic Effect and the Sham Transactions Interest Deduction Denied on tion Because Partnership Interest Was Not Qualified Income Offset, by Terence Floyd Cuff, Loans Used to Pay Premiums on Corporate Proved Worthless or Abandoned, by Carol Kul- 8 BET 24, Nov/Dec. 06 Owned Life Insurance, by Steven |. Klein & ish Harvey, Janet Jardin, Jill Robertson-Li, & Stephen R. Looney, 8 BET 60, May/June 06 Pass-Thrus Matthew J. Sullivan 8 BET 53, Nov./Dec. 06 Taxpayers Sale of Stock to Foreign Corp. Lacked Eco- IRS Rules on Treatment of Parent Corporation's Pay- IRS Advises Fiscal Year Partnerships and S Corpo- nomic Substance, by Steven I. Klein & Stephen ment to Partnership, by Lily Hoang, Carol Kulish rations with Respect to Recently, by Patrick R. Looney, 8 BET 62, May/June 06 Harvey, Alyson Outenreach, & Matthew J. Sul Browne, Janet Jardin, & Carol Kulish Harvey, 8 Shop Talk livan, 8 BET 54, July/Aug. 06 BET 51, Mar/Apr. 06 The Alternative Test for Economic Effect and the Memo on Low-Income Housing Limited Partner- IRS Releases Draft Schedules M-3 for S Corporations Qualified Income Offset, by Terence Floyd Cuff, ships, by Lily Hoang, Carol Kulish Harvey, Alyson and Partnerships, by Patrick Browne, Janet 8 BET 24, Nov./Dec.06 Outenreach, & Matthew J. Sullivan, 8 BET 53, Jardin, & Carol Kulish Harvey, 8 BET 50, Mar/Apr. July/Aug. 06 06 State Tax Partner Must Report Income Regardless of Dis- Recently Enacted Technica! Corrections Legislation ‘Former’ Clients and Changes in Law, by Thomas puted Amount of Distributive Share, by Patrick Includes Items Relevant to Passthrough Entities, E. Rutledge & Allan W. Vestal 8 BET 40, Browne, Janet Jardin, & Carol Kulish Harvey, 8 July/Aug.06 by Patrick Browne, Janet Jardin, & Carol Kulish BET 56 Mar./Apr. 06 Harvey, 8 BET 49, Mar/Apr. 06 LLCs and RLLPsUpdate for 2006, Bruce P. Ely, President Signs Law Prohibiting State Tax on Retire- Christopher R. Grissom, & Matthew S. Houser, ment Benefits to Nonresident Partners, by Car- Section 199 Proposed Regs, by Steven |. Klein & 8 BET 28, July/Aug. 06 ol Kulish Harvey, Janet Jardin, Jill Roberson-Li, Stephen R. Looney, 8 BET 58, Jan./Feb. 06 Subchapter S$ & Mathew J. Sullivan, 8 BET 52, Nov./Dec. 06 Section 470 Relief for Partnerships With Tax-Exempt Administrative Dissolution and Reincorporation Does Proposed Regs Address Application of Portfolio Partners Extended One Year, by Patrick Browne, Not Terminate S Election, by Steven |. Klein & Interest Exception to Partnerships, by Steven | Janet Jardin, & Carol Kulish Harvey, 8 BET 51 Stephen R. Looney, 8 BET 50, Sept./Oct. 06 Klein & Stephen R. Looney, 8 BET 61, Sept/Oct Mar/Apr. 06 06 IRS Rules on Transaction Where S Corporation Partnerships/S Corporations Restructured Prior to Sale of One of Its Busi- Proposed Regs on Partnership Interests Issued for CCA Reverses IRS on Refunds of Required Pay- nesses by Carol Kulish Harvey, Janet Jardin. Jill Services, by Blake D. Rubin & Andrea Macintosh ments, by Steven |. Klein & Stephen R. Looney, Robertson-Li, & Mathew J. Sullivan, 8 BET 54, Whiteway, 8 BET 18, May/June 06 Nov./Dec. 06 8 BET 56, May/June 06 Proposed Regs Regarding Partnership Allocations of IRS Takes Aggressive Positions in Back-to-Back Look-Through Entity Partners, by Patrick Browne, Real Estate Loan Area, by Steven |. Klein & Stephen R. Janet Jardin, & Caro! Kulish Harvey, 8 BET 55 Factors Considered in Satisfying Section 6166 Active Looney, 8 BET 46, Sept./Oct. 06 Mar/Apr. 06 Trade or Business Requirement for Real Estate IRS Waives Five-Year Waiting Period for Reelection Second Circuit in Tax Shelter Case Agrees with IRS Holdings, by Steven I. Klein & Stephen R. Looney, of S Corp. Status, by Steven |. Klein & Stephen that Foreign Banks Are Not Equity Partners, by 8 BET 52, Sept./Oct. 06 R. Looney, 8 BET 55, May/June 06 Carol Kulish Harvey, Janet Jardi, Jill Robertson- Reimbursement Arrangements for Employees Pro- Members of a Family Treated as Single Sharehold- Li, & Matthew J. Sullivan, 8 BET 49, Nov./Dec viding Services to Subsidiaries Does Not Con- er for Purposes of Counting the Number of S 06 stitute Gross Income to REIT, by Steven I. Klein Corporation Shareholders, by Patrick Browne, Simplified Withholding Procedures for Foreign Part- & Stephen R. Looney, 8 BET 57, Sept/Oct. 06 Janet Jardin, & Carol Kulish Harvey, 8 BET 53, nerships, by Patrick Browne, Janet Jardin, & Mar/Apr. 05 Caro! Kulish Harvey, 8 BET 56, Mar/Apr. 06 Nhen Is a Lease Not a Lease? The Tax Implications of a Lease, by Eric Christian, 8 BET 18 Mar/Apr Merger of S Corporation into LLC Taxed as Corpo- Sing Your Way Clearly Through the Array of Part- ration Qualifies as ‘F’ Reorganization and Main- 06 nership Distribution Rules, by Bruce J. Belman, tains S Status, by Steven |. Klein & Stephen R. 8 BET 38, Sept/Oct. 06 Restricted Property Looney, 8 BET 50, Sept./Oct. 06 TEFRA Time Limitation Does Not Shorten Three-Year Rev. Proc. 2006-31 Addresses Revocation of Sec- Tax Shelters Time Limitation of Section 6501, by Carol Kul- tion 83(b) Election, by Steven |. Klein & Stephen A New Standard for the Economic Substance to be ish Harvey, Janet Jardin, Jill Robertson-Li& R. Looney, 8 BET 60, Sept/Oct. 06 Applied by the Court of Claims, by James Daw- Matthew J. Sullivan, 8 BET 51, Nov/Dec/ 06 Sales/Exchanges son. 8 BET 36, Nov./Dec. 06 Treatment of Parent Corporation’s Payment to Part- nership, by Lily Hoang, Carol Kulish Harvey, Corporation Must Recognize Gain on Loan of Pre- Telecommunications Alyson Outenreach, & MatthewJ . Sullivan, 8 BET paid Forward Shares, by Steven |. Klein & What's New in Telecom Challenges, Annette Nellen 54 53 July/Aug. 06 Stephen R. Looney, 8 BET 57, May/June 06 8 BET 4, July/Aug. 06 AUTHOR INDEX Demrew, Emebeth, 8 BET 44, July/Aug. 06 Klein, Steven |. & Looney, Stephen R., 8 BET 46, Sept./Oct. 06 Easton, Reed W., 8 BET 24, Mar./Apr. 06 August, Jerald David, Ely, Bruce P., Grissom, Lurie, Alvin D., 8 BET 32, Mar./Apr. 06 Dawson James, Christopher R. & Houser, Lurie, Alvin D., 8 BET 20, Sept./Oct.06 & Maxfield, Guy, 8 BET 6, Jan./Feb. 06 Matthew S., 8 BET 28, July/Aug. 06 McNulty, Mary A. & August, Jerald David, Dawson, Kwon, Michelle M 8 BET 28 May/June 06 James, Maxfield, Guy, Geu, Thomas Earl & & Pollinger, Jr., Eugene F., 8 BET 6 May/June 06 Rutledge, Thomas E., 8 BET 44, May/June 06 Melone, Matthew A., 8 BET 18, Jan./Feb. 06 August, Jerald David Harris, Richard W., 8 BET 36, Mar./Apr. 06 Melone, Matthew A., 8 BET 4, Mar./Apr. 06 & Cohen, Lawrence, 8 BET 14,July/Aug. 06 Harvey, Carol Kulish, Nellen, Annette, 8 BET 4, July/Aug. 06 August, Jerald David Jardin, Janet, Robertson-Li, Purcell, Tom, Zarzar, Robert A., & Cohen, Lawrence, 8 BET 6, Sept./Oct. 06 Jill, & Sullivan, Michael J., 8 BET 49 Nov/Dec. 06 & Manousos, George, 8 BET 3 Nov./Dec. 06 Belman, Bruce J., 8 BET 38, Sept./Oct. 06 Hoang, Lily, Harvey, Rutledge, Thomas E. & Browne, Patrick, Carol Kulish, Outenreach, Vestal, Allan W., 8 BET 40 July/Aug. 06 Jardin, Janet, and Alyson, & Sullivan, Michael J., 8 BET 53, July/Aug. 06 Rubin, Blake D. & Whiteway, Harvey, Carol Kulish 8 BET 49, Mar./Apr. 06 Andrea Macintosh, 8 BET 16 May/June 06 Klein, Steven |. & Christian, Eric, 8 BET 18, Mar./Apr. 06 Looney, Stephen R., 8 BET 45, Jan./Feb. 06 Sheppard, Lee A., 8 BET 40, Jan./Feb. 06 Cuff, Terence Floyd 8 BET 24, Nov./Dec. 06 Klein, Steven |. & Stein, Jacob, 8 BET 28, Sept./Oct. 06 Dawson, James 8 BET 36, Nov./Dec. 06 Looney, Stephen R., 8 BET 48, May/June 06 Thomas II., Gerald V., 8 BET 28, Jan./Feb. 06 64 BUSINESS ENTITIES November/December 2006 INDEX hy