- 7 -
of the liabilities, and whether the liabilities are nonrecourse.
Sec. 301.6231(a)(3)-1(a)(1)(v), Proced. & Admin. Regs.
A nonpartnership item is "an item which is (or is treated
as) not a partnership item." Sec. 6231(a)(4). An "affected
item" is "any item to the extent such item is affected by a
partnership item." Sec. 6231(a)(5); see also N.C.F. Energy
Partners v. Commissioner, 89 T.C. 741, 743-745 (1987); sec.
301.6231(a)(5)-1T(a), Temporary Proced. & Admin. Regs., 52 Fed.
Reg. 6790 (Mar. 5, 1987).6 The determination of a partner's
amount at risk with respect to partnership liabilities personally
assumed is an affected item. Hambrose Leasing v. Commissioner,
99 T.C. 298, 312 (1992); sec. 301.6231(a)(5)-1T(c), Temporary
Proced. & Admin. Regs., 52 Fed. Reg. 6790 (Mar. 5, 1987). While
there are partnership item components to the at risk calculation
that affect that determination at the partner level, the
determination of amounts at risk by individual partners is not a
partnership item.7 Hambrose Leasing v. Commissioner, supra at
309-312; sec. 301.6231(a)(3)-1(a)(1)(vi)(C), Proced. & Admin.
6
There are two types of affected items: (1) Those
requiring factual determinations to be made at the partner level,
and (2) a computational adjustment made to record the change in a
partner's tax liability resulting from the proper treatment of
partnership items. N.C.F. Energy Partners v. Commissioner, 89
T.C. 741, 744 (1987).
7
For example, paragraph six of the original settlement
agreement refers to the suspension of losses under sec. 465 and
carried forward to future years.
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