In Touch Properties, LLC, David England, Tax Matters Partner - Page 19




                                        -19-                                          
               Dial USA, Inc. v. Commissioner, 95 T.C. at 5 n.5.  [Id.                
               at 312; fn. ref. omitted.]                                             
               We have also considered a similar issue with respect to                
          contributions of property to a passthrough entity and the effect            
          of the contributions on the basis of individual members.  In Dial           
          USA, Inc. v. Commissioner, 95 T.C. 1 (1990), we considered                  
          whether a member’s basis in an S corporation is a “subchapter S             
          item” within the meaning of former section 6245.12  We                      
          acknowledged that the partnership audit and litigation provisions           
          contained in sections 6221-6231 “were, in effect, grafted onto              
          the subchapter S audit and litigation provisions” by former                 
          section 6244, id. at 3, and we held that a member’s basis in the            
          passthrough entity was not an item “required” to be taken into              
          account by the entity for the entity’s taxable year, id. at 5-6.            
               We conclude that it is not necessary or appropriate to                 
          decide the basis and at-risk issues.                                        
               To reflect the foregoing,                                              

                                             An appropriate decision will             
                                        be entered.                                   



               12The subch. S audit and litigation provisions were repealed           
          by the Small Business Job Protection Act of 1996, Pub. L. 104-              
          188, sec. 1307(c)(1), 110 Stat. 1781, applicable to tax years               
          beginning after Dec. 31, 1996.                                              





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