-51-
partnership or S corporation could aggregate all of its leased
section 1245 property, while other taxpayers treated each of
their properties in that category as a separate activity. As
amended by DEFRA, section 465(c)(2) generally requires, except as
provided in section 465(c)(2)(B), that partnerships and S
corporations separate equipment leasing activities (and the other
activities listed in section 465(c)(1)) on a property-by-property
basis, as do other taxpayers. If petitioners’ interpretation
were adopted, permitting all leased section 1245 properties of a
partnership or S corporation to be aggregated into one activity
for purposes of the at-risk rules, section 465(c)(2), as amended
by DEFRA, would largely be ineffective.
We conclude by noting that our interpretation of section
465(c)(2)(B)(i) to refer to a single taxable year rather than all
of a taxpayer’s taxable years coincides with the views of
commentators. Since the enactment of section 465(c)(2)(B),
commentators have consistently agreed with the interpretation
that we espouse today. See, e.g., Starczewski, 550-2nd Tax
Management Portfolio (BNA), "At-Risk Rules" A-18 n.153 (“For the
leasing of � 1245 property that is all placed in service in a
single taxable year, � 465(c)(2)(B)(i) specifically provides for
aggregation.”) & A-19 (“The partnership aggregation rule
apparently does not apply to a partnership or S corporation that
leases equipment that is placed in service in different years.”)
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