Qualified non-recourse financing is partnership level determination

CCA 201138040




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UIL No. 6231.05-00



Headnote:



Reference(s):



FULL TEXT:

Number: 201138040



Release Date: 09/23/2011



Number: 201138040ID: CCA_2011072611321237



Release Date: 9/23/2011 Office: —————



UILC: 6231.05-00



From: —————————- Sent: Tuesday, July 26, 2011 11:32:18 AM To: —————————— Cc: ————————————————— Subject: RE: TEFRA question.



Yes. The determination that “qualified nonrecourse financing” is non-qualified non-recourse financing is a partnership item whose determination or recharacterization must be made at the partnership level. See Dakotah Hills v. Commissioner, T.C. Memo. 1996-35 and Treas. Reg. 301.6231(a)(3)-1(a)(1)(v) and -1(a)(1)(vi)(C)(amounts enabling partner to compute at risk under section 465).
CCA 201138035




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UIL No. 6231.05-00



Headnote:



Reference(s):



FULL TEXT:

Number: 201138035



Release Date: 09/23/2011



Number: 201138035ID: CCA_2011071108305737



Release Date: 9/23/2011 Office: —————



UILC: 6231.05-00



From: —————————- Sent: Monday, July 11, 2011 8:31:09 AM To: —————————————— Cc: —————- Subject: RE: TEFRA affected item



Under Roberts v. Commissioner, 94 T.C. 853, 860 (1990) we may assert the section 465(e) recapture as an affected item without conducting a prior TEFRA proceeding. For purposes of computing the affected item recapture the parties will be bound by the partnership's reporting of the change from recourse debt to nonrecourse debt.