Generally if payments are in exchange for partnership property, the amount received in excess of the partner’s outside basis in his/her partnership interest is taxed as capital gain. However if the payments represent a distributive share of partnership income or are deemed to be guaranteed payments, the payments are taxed as ordinary income. According to Tax Court Memo 2009-243 Wallis v. Commissioner, retirement payments to…Details
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Read about some of John’s more memorable experiences navigating the conflicting sections of the Internal Revenue Code.