The IRS has issued guidance addressing the increasing instances of abusive basis shifting by related-party partnerships. Taxpayers are inappropriately using partnership rules to inflate the basis of underlying assets without affecting the economics of their businesses. The basis-shifting transactions targeted in Notice 2024-54 fall into three groups: 1) transfer of partnership interests to a related party, 2) distribution of property to a related party and 3) liquidation of a related partnership. Generally, these transactions allow increased depreciation deductions or reduced gain on the sale of assets with little or no substantive economic consequence. To learn more: https://bit.ly/3VNqvvB
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