EFTA01097356Set 9
68p35,148w
Consequences of Interest Payments Made Pursuant to the
Promissory Note 21
C. Using Nonrecourse Debt to Avoid the Potential Gain Realization Issues 22
I. General Case Law 22
2. Authorities ... partnership, which could enable a taxpayer to deduct pass-
through losses attributable to nonrecourse debt, i.e., the case of a tax shelter.
Several aspects of the court's analysis might ... obligor is a significant modification. The substitution of a
new obligor on a nonrecourse debt instrument, without more, is not a significant
modification to trigger a gain realizing exchange under
https://www.justice.gov/epstein/files/DataSet%209/EFTA01097356.pdf
EFTA01134802Set 9
2013-05-0137p14,486w
Company Minimum Gain shall be
determined, first, by computing for each Nonrecourse Liability any gain which the
Company would realize if the Company disposed of the property subject to that ... allocated in Article IV.
"Member Minimum Gain" shall have the same meaning as partner nonrecourse
debt minimum gain as set forth in Treasury Regulation § 1.704-2(i)(3). With respect ... each Member Nonrecourse Debt, Member Minimum Gain shall be determined by
32
EFTA01134833
computing for each Member Nonrecourse Debt any gain that the Company would realize
if the Company disposed
https://www.justice.gov/epstein/files/DataSet%209/EFTA01134802.pdf
EFTA01154591Set 9
2014-04-3055p15,833w
areas.
In addition, regulations under section 752 address the treatment of partnership
recourse and nonrecourse liabilities. The IRS and the Treasury Department believe it is
appropriate to reconsider the rules ... payment obligations under
§1.752-2(b)(6), and the methods available for allocating excess nonrecourse liabilities
under §1.752-3(a)(3). Also discussed in the following section is an explanation ... worst-case scenario. Under this test, the regulations would generally allocate
an otherwise nonrecourse liability of the partnership to a partner that guarantees the
liability even if the lender
https://www.justice.gov/epstein/files/DataSet%209/EFTA01154591.pdf
EFTA00617557Set 9
78p41,041w
Section 6.5(il.
"Minimum Gain" shall mean (a) with respect to Partnership Nonrecourse Liabilities, the
amount of gain that would be realized by the Partnership if it disposed ... taxable transaction)
all Partnership assets that are subject to Partnership Nonrecourse Liabilities in full satisfaction of
Partnership Nonrecourse Liabilities, computed in accordance with applicable Treasury
Regulations, or (b) with respect ... each Partner Nonrecourse Debt, the amount of gain that would
be realized by the Partnership if it disposed of (in a taxable transaction) the Partnership assets that
are subject
https://www.justice.gov/epstein/files/DataSet%209/EFTA00617557.pdf
EFTA01084769Set 9
78p41,041w
Section 6.5(il.
"Minimum Gain" shall mean (a) with respect to Partnership Nonrecourse Liabilities, the
amount of gain that would be realized by the Partnership if it disposed ... taxable transaction)
all Partnership assets that are subject to Partnership Nonrecourse Liabilities in full satisfaction of
Partnership Nonrecourse Liabilities, computed in accordance with applicable Treasury
Regulations, or (b) with respect ... each Partner Nonrecourse Debt, the amount of gain that would
be realized by the Partnership if it disposed of (in a taxable transaction) the Partnership assets that
are subject
https://www.justice.gov/epstein/files/DataSet%209/EFTA01084769.pdf
EFTA00284039Set 9
17p7,814w
Year shall mean such taxable year.
B- 2
404348-3-W
EFTA00284050
00 "Member Nonrecourse Debt" has the same meaning as the term "partner nonrecourse
debt" set forth in Regulations ... Section 1.704-2(b)(4).
"Member Nonrecourse Debt Minimum Gain" means an amount, with respect to each
Member Nonrecourse Debt, equal to the Company Minimum Gain that would result ... Member
Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations
Section 1.704-2(i)(3).
"Member Nonrecourse Deductions" has the same meaning as the term "partner
https://www.justice.gov/epstein/files/DataSet%209/EFTA00284039.pdf
EFTA00284022Set 9
17p7,814w
Year shall mean such taxable year.
B- 2
404348-3-W
EFTA00284033
00 "Member Nonrecourse Debt" has the same meaning as the term "partner nonrecourse
debt" set forth in Regulations ... Section 1.704-2(b)(4).
"Member Nonrecourse Debt Minimum Gain" means an amount, with respect to each
Member Nonrecourse Debt, equal to the Company Minimum Gain that would result ... Member
Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations
Section 1.704-2(i)(3).
"Member Nonrecourse Deductions" has the same meaning as the term "partner
https://www.justice.gov/epstein/files/DataSet%209/EFTA00284022.pdf
EFTA00806988Set 9
16p7,568w
Year shall mean such taxable year.
A-2
452345-2-W
EFTA00806998
(h) "Member Nonrecourse Debt" has the same meaning as the term "partner nonrecourse
debt" set forth in Regulations ... Section I.704-2(bX4).
(i) "Member Nonrecourse Debt Minimum Cain" means an amount, with respect to each
Member Nonrecourse Debt, equal to the Company Minimum Gain that would result ... Member
Nonrccourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations
Section 1.704-2(iX3).
(.1) "Member Nonrecourse Deductions" has the same meaning as the term "partner
https://www.justice.gov/epstein/files/DataSet%209/EFTA00806988.pdf
EFTA01084507Set 9
2006-12-0649p19,072w
which the Company is a partner, were
satisfied (limited with respect to each nonrecourse liability to the Asset Value of the assets
securing such liability) and the net assets ... such allocation,
minus (ii) such Member's share of Company minimum gain and Member nonrecourse debt
minimum gain determined pursuant to Treasury Regulations Sections ... other provision of this Schedule, if
there is a net decrease in partner nonrecourse debt minimum gain attributable to a partner
nonrecourse debt during any Fiscal Year, each Member
https://www.justice.gov/epstein/files/DataSet%209/EFTA01084507.pdf
EFTA00614617Set 9
2015-03-0942p11,172w
hereof shall not be taken into account
in computing Net Income or Net Losses.
"Nonrecourse Deductions" has the meaning set forth in Section 5.08(bXiv) hereof.
"Partner Nonrecourse Debt Minimum ... Gain" has the meaning set forth in Section
5.08(bXi).
"Partner Nonrecourse Deductions" has the meaning set forth in Section 5.08(bXv)
hereof
"Partners" means, as the context may require ... Carrying Value, all liabilities of
the Fund were satisfied (limited, with respect to each nonrecourse liability, to the
Carrying Value of the asset(s) securing such liability
https://www.justice.gov/epstein/files/DataSet%209/EFTA00614617.pdf
EFTA00803515Set 9
2015-03-0942p18,911w
hereof shall not be taken into account
in computing Net Income or Net Losses.
"Nonrecourse Deductions" has the meaning set forth in Section 5.08(bXiv) hereof.
"Partner Nonrecourse Debt Minimum ... Gain" has the meaning set forth in Section
5.08(bXi).
"Partner Nonrecourse Deductions" has the meaning set forth in Section 5.08(bXv)
hereof
"Partners" means, as the context may require ... Carrying Value, all liabilities of
the Fund were satisfied (limited, with respect to each nonrecourse liability, to the
Carrying Value of the asset(s) securing such liability
https://www.justice.gov/epstein/files/DataSet%209/EFTA00803515.pdf
EFTA00614659Set 9
2015-03-0942p11,174w
hereof shall not be taken into account
in computing Net Income or Net Losses.
"Nonrecourse Deductions" has the meaning set forth in Section 5.08(bXiv) hereof.
"Partner Nonrecourse Debt Minimum ... Gain" has the meaning set forth in Section
5.08(bXi).
"Partner Nonrecourse Deductions" has the meaning set forth in Section 5.08(bXv)
hereof
"Partners" means, as the context may require ... Carrying Value, all liabilities of
the Fund were satisfied (limited, with respect to each nonrecourse liability, to the
Carrying Value of the asset(s) securing such liability
https://www.justice.gov/epstein/files/DataSet%209/EFTA00614659.pdf
EFTA01280219Set 10
78p23,884w
Partners share of kabllitieS at year end:
A 0.
Nomecourse
2,609.
Qualified nonrecourse financing
92,108. 'Sea triads te farad on 1informa on
Recourse
0.
L Partner's capital ... Partners share of liabeties at the end of the year
1) Nonrecourse
It 2,609.
2) Qualified nonrecourse financing
12 92,108.
3) Recourse
13
J Partner's capital account ... captai 1.7391304% 1.7391304% 14 SelhemMOYment
K Partners share of Malt* at year end: °amines90m)
Nonrecourse 0.
2,844.
oualified nonrecourse financing 9 104,518. *Sea Mood statement for additional IlltOrMeOn
https://www.justice.gov/epstein/files/DataSet%2010/EFTA01280219.pdf
EFTA00611757Set 9
2014-01-304p2,159w
that upend the current rules on the treatment of partnership recourse and nonrecourse liabilities in section
752, prompting harsh criticism from practitioners who described the regs as disastrous.
Full Text ... that upend the current rules on the treatment of partnership recourse and nonrecourse liabilities in section
752, prompting harsh criticism from practitioners who described the regs as disastrous ... requirements to intentionally fail to meet them to take advantage of the nonrecourse debt rules. "It will let
people who currently can't get deductions get deductions," he said
https://www.justice.gov/epstein/files/DataSet%209/EFTA00611757.pdf
EFTA00593209Set 9
2012-08-3026p10,585w
less than I year.. .
17 Other current liabilities (attach stmt)
18 All nonrecourse loans
19a Loans from partners (or persons related to partners) 23,871.
b Mortgages, notes, bonds ... information
Capital 84.31 %
A 40.
K Partner's share of liabilities at year end:
Nonrecourse $
Qualified nonrecourse financing $ 14 Self-employment earnings (loss)
Recourse $
L Partner's capital account analysis ... Other information
Capital 15.69 %
A 7.
K Partners share of liabilities at year end:
Nonrecourse $
Qualified nonrecourse financing $ 14 Self-employment earnings (loss)
Recourse $
L Partners capital account analysis:
Beginning
https://www.justice.gov/epstein/files/DataSet%209/EFTA00593209.pdf
EFTA01093471Set 9
38p18,496w
their Adjusted Asset Value, all Company liabilities were satisfied (limited with
respect to each nonrecourse liability to the Adjusted Asset Value of the assets securing such liability),
norm CURRENCY PARTNERS11 ... such allocation, mimes 00 such Member's share of Company Minimum
Gain and Member Nonrecourse Debt Minimum Gain, computed immediately prior to the
hypothetical sale of assets. The Managing Member ... Article V, if there is a net decrease in Company Minimum Gain or Member Nonrecourse Debt
Minimum Gain (determined in accordance with the principles of Treasury Regulations
Sections
https://www.justice.gov/epstein/files/DataSet%209/EFTA01093471.pdf
EFTA01093509Set 9
40p19,567w
their Adjusted Asset Value, all Partnership liabilities were satisfied (limited with respect
to each nonrecourse liability to the Adjusted Asset Value of the assets securing such liability ... such allocation, minus (ii) such Partner's share of Partnership Minimum
Gain and Partner Nonrecourse Debt Minimum Gain, computed immediately prior to the
hypothetical sale of assets. The General Partner ... Article V, if there is a net decrease in Partnership Minimum Gain or Partner Nonrecourse Debt
Minimum Gain (determined in accordance with the principles of Treasury Regulations
Sections
https://www.justice.gov/epstein/files/DataSet%209/EFTA01093509.pdf