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(A) an interest as a proprietor in a
trade or business carried on as a
proprietorship;
(B) an interest as a partner in a
partnership carrying on a trade or business
* * *
* * * * * * *
(C) stock in a corporation carrying on a
trade or business * * *. [Emphasis added.]
Respondent acknowledges the relationship between section
6166 and section 2057, but respondent argues that the limitations
in section 6166 to equity ownership interests support
respondent’s position that section 2057(e)(1)(B) should be
construed in a parallel manner to limit the QFOBI to an equity
ownership interest.
Our holding herein is based largely on the close proximity
of the language “interest in an entity” in section 2057(e)(1)(B)
to the explicit equity ownership language of section
2057(e)(1)(B)(i) and (ii). We find it illogical to divorce the
equity ownership requirements of section 2057(e)(1)(B)(i) and
(ii) from the immediately preceding language. As we read the
statute, the “interest in an entity” language of section
2057(e)(1)(B) encompasses, or embraces, or is limited to, only
the type of interests (i.e., to equity ownership interests) that
is described in the rest of the very same sentence (i.e., in the
immediately following clauses of section 2057(e)(1)(B)).
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Last modified: March 27, 2008