The extent to which partnership income taxation invokes an entity or aggregation approach continues to elicit controversy. In a 2017 reviewed decision, Grecian Magnesite Mining v. Commissioner, refused to look inside a partnership to determine the character of gain on sale of the partnership interest. The same judge decided Rawat v. Commissioner, T.C. Memo. 2023-14, limiting the scope of Grecian Magnesite. In July 2024, the Court of Appeals for the District of Columbia Circuit reversed the Tax Court decision, enhancing Grecian Magnesite's entity approach. This webinar will discuss both of these cases and how they affect partnership income taxation along with recent cases that analyze step transaction and economic substance -- the subjects of recent contests.

This webinar will also review a trust’s abilities to complete Code §1031 like-kind exchanges and summarize developments in Code §1202 exclusion of gains from the sale of qualified small business stock. This will include an exploration of capital gain and ordinary income treatment on the sale of partnership interest in light of recent cases. Step transactions and economic substance cases, including a life insurance transfer tax and an income tax case will also be covered.

Learning Objectives:

• Recognize capital gain and ordinary income treatment on sale of partnership interests


• Identify recent cases that examine step transactions and economic substance


• Evaluate a trust's ability to complete like-kind exchanges under section 1031


• List developments in section 1202 exclusion of gains from sale of qualified business stock