S 2094
Basis Shifting is a Rip-off Act
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Sign in to take action- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Bill overview
This bill, titled "Basis Shifting is a Rip-off Act," aims to modify how partnerships handle distributions to partners, particularly when those distributions involve related parties. It proposes rules to prevent partners from artificially shifting gains and losses when transferring partnership interests, aiming to curb what the bill’s sponsors view as abusive tax strategies. Specifically, it limits recognition of gain on certain distributions and establishes a definition of ‘applicable partnership’ based on related-party relationships, with an exception for small businesses. The bill also addresses adjustments to partnership basis and penalties for understatements related to these transactions.
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