Distributions of marketable securities from partnerships

The CPA Journal | April 1, 1996| | Copyright

Now treated as distributions of money

The GATT legislation created a new IRC section that treats the distribution of marketable securities from a partnership as a distribution of money. The author explains what marketable securities are covered and what exceptions are provided in the law. Tax planning opportunities are also provided.

A significant provision affecting partnerships found its way into law at 1994 year end when President Clinton signed into law the Uruguay Round of the General Agreement on Tariffs and Trade (GATT, which deals primarily with tariff and trade matters. Buried in the ...

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