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and wife, and Kenneth and Rosemary Manrao as husband and wife--
thereby meeting the first requirement of the small partnership
exception. See sec. 6231(a)(1)(B)(i)(I). Furthermore, there is
no indication that Executive Inn filed an election under section
6231(a)(1)(B)(ii) to be treated as a partnership for purposes of
the TEFRA partnership procedures. In fact, Executive Inn
indicated on Schedule B of its Form 1065, U.S. Partnership Return
of Income, line 4, for the 1994 and 1995 taxable years that it
was not subject to the consolidated audit procedures of sections
6221 through 6233.
The remaining question, therefore, is whether the second
requirement that each partner's share of each partnership item
was the same as his share of every other item has been satisfied.
See sec. 6231(a)(1)(B)(i)(II). Section 301.6231(a)(1)-1T(a)(3),
Temporary Proced. & Admin. Regs., 52 Fed. Reg. 6789 (Mar. 5,
1987), provides in pertinent part:
(3) "Same share." The requirement of section
6231(a)(1)(B)(i)(II) is satisfied for a taxable year if
during all periods within that taxable year each partner's
share of each of the partnership items specified in �
301.6231(a)(3)-1(a)(1)(i) through (iv) is the same as that
partner's share of each of the other partnership items
specified in that section during that period (even though
the partner's share of all such specified partnership items
changes from period to period within that taxable year)
* * *
The partnership items referred to in these regulations are:
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Last modified: May 25, 2011