Simplifying Partnership Tax Rules and Combating Tax Avoidance.
This act modifies tax rules for partnerships, aiming to simplify regulations and prevent tax avoidance. Citizens involved in partnerships may experience changes in how income and losses are accounted for, as well as in reporting obligations. The goal is to enhance transparency and fairness in the tax system.
Key points
Changes to how partnership income and losses are allocated to better reflect partners' actual interests.
New rules for taxing property contributed to a partnership and its subsequent revaluation.
Streamlined rules for partnership debt and adjustments to partnership property basis after ownership changes.
Extension of net investment income tax to certain business income for high-income individuals.
Strengthening anti-avoidance rules for transfers to investment companies.
Simplification of rules for losses from worthless assets and partnership interests.
Introduction of a general anti-abuse rule allowing transaction modification to reflect economic substance.
Introduced
Citizen Poll