Section 1045 Application to Partnerships; Correction, 57487 [E7-19869]
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Federal Register / Vol. 72, No. 195 / Wednesday, October 10, 2007 / Rules and Regulations
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9353]
RIN 1545–BC67
Section 1045 Application to
Partnerships; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendments.
AGENCY:
SUMMARY: This document contains
corrections to final regulations (TD
9353) that were published in the
Federal Register on Tuesday, August
14, 2007 (72 FR 45346) relating to the
application of section 1045 of the
Internal Revenue Code to partnerships
and their partners.
DATES: This correction is effective
October 10, 2007.
FOR FURTHER INFORMATION CONTACT: Jian
H. Grant at (202) 622–3050 (not a tollfree number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the
subject of this correction are under
section 1045 of the Internal Revenue
Code.
(c) * * *
(1) * * *
(i) * * * A taxpayer other than a C
corporation that sells QSB stock held for
more than 6 months at the time of the
sale may elect in accordance with
paragraph (h) of this section to apply
section 1045 if replacement QSB stock
is purchased by a purchasing
partnership (including a selling
partnership).
*
*
*
*
*
(2) * * *
(i) General rule.
*
*
*
*
*
(h) * * *
(3) * * *
(i) * * *
Example 3. * * *
(i) On January 1, 2008, A, an individual,
and B, an individual, each contribute $500 to
UTP (upper-tier partnership) for equal
partnership interests. On February 1, 2008,
UTP and C, an individual, each contribute
$1,000 to LTP (lower-tier partnership) for
equal partnership interests. On March 1,
2008, LTP purchases QSB stock for $500. On
April 1, 2008, D, an individual, joins UTP by
contributing $500 to UTP for a 1/3 interest
in UTP. On December 1, 2008, LTP sells the
QSB stock for $2,000. * * *
*
Need for Correction
As published, final regulations (TD
9353) contain errors that may prove to
be misleading and are in need of
clarification.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
*
*
*
*
Example 5. * * *
(v) * * * In accordance with the principles
of § 1.743–1(j)(3), the amount of A’s gain
from the March 30, 2009, sale of replacement
QSB1 stock in which A has a $200 negative
basis adjustment equals $300 (A’s share of
PRS’ gain from the sale of replacement QSB1
stock ($100), increased by the amount of A’s
negative basis adjustment for replacement
QSB1 stock ($200)). * * *
Correction of Publication
*
Accordingly, 26 CFR part 1 is
corrected by making the following
amendments:
Example 12. * * *
(ii) Because A purchased within 60 days of
PRS’ sale of the QSB stock, replacement QSB
stock for a cost equal to A’s share of the
partnership’s amount realized on the sale of
the QSB stock, and because A made a valid
election to apply section 1045 with respect
to A’s share of the gain from PRS’ sale of the
QSB stock, A does not recognize A’s $100
distributive share of the gain from PRS’ sale
of the QSB stock. * * *
I
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read, in part, as
follows:
I
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1045–1 is amended
by revising the last sentence of
paragraph (c)(1)(i), the subtitle of
paragraph (c)(2)(i), the first five
sentences of paragraph (h)(3)(i) Example
3.(i), the fourth sentence of (h)(3)(i)
Example 5.(v), and the first sentence of
(h)(3)(i) Example 12.(ii) to read as
follows:
rmajette on PROD1PC64 with RULES
I
§ 1.1045–1
*
*
*
*
*
*
*
*
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. E7–19869 Filed 10–9–07; 8:45 am]
BILLING CODE 4830–01–P
Application to partnerships.
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57487
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[CGD01–07–136]
Drawbridge Operation Regulations;
Kennebec River, Bath and Woolwich,
ME
Coast Guard, DHS.
Notice of temporary deviation
from regulations.
AGENCY:
ACTION:
SUMMARY: The Commander, First Coast
Guard District, has issued a temporary
deviation from the regulation governing
the operation of the Carlton Bridge
across the Kennebec River at mile 14.0,
between Bath and Woolwich, Maine.
Under this temporary deviation the
Carlton Bridge may remain in the closed
position from 6:30 a.m. to 6:30 p.m. for
seven days; October 1, 2, 8, 9, 15, 16,
and 22, 2007, to facilitate bridge
painting operations. Vessels that can
pass under the draw without a bridge
opening may do so at all times. This
deviation is necessary to facilitate
bridge painting.
DATES: This deviation is effective from
October 1, 2007 through October 22,
2007.
ADDRESSES: Materials referred to in this
document are available for inspection or
copying at the First Coast Guard
District, Bridge Branch Office, 408
Atlantic Avenue, Boston, Massachusetts
02110, between 7 a.m. and 3 p.m.,
Monday through Friday, except Federal
holidays. The telephone number is (617)
223–8364. The First Coast Guard
District Bridge Branch Office maintains
the public docket for this temporary
deviation.
FOR FURTHER INFORMATION CONTACT: John
McDonald, Project Officer, First Coast
Guard District, at (617) 223–8364.
SUPPLEMENTARY INFORMATION: The
Carlton Bridge, across the Kennebec
River, mile 14.0, between Bath and
Woolwich, Maine, has a vertical
clearance in the closed position of 10
feet at mean high water and 16 feet at
mean low water. The existing
drawbridge operation regulations are
listed at 33 CFR 117.525.
The owner of the bridge, Maine
Department of Transportation, requested
a temporary deviation to facilitate
bridge painting operations at the Carlton
Bridge.
The bridge painting will be performed
on the lift span end sections which
requires the lift span to be raised up 6
feet and locked in that position in order
E:\FR\FM\10OCR1.SGM
10OCR1
]]>Agencies
[Federal Register Volume 72, Number 195 (Wednesday, October 10, 2007)]
[Rules and Regulations]
[Page 57487]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19869]
[[Page 57487]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9353]
RIN 1545-BC67
Section 1045 Application to Partnerships; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendments.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to final regulations (TD
9353) that were published in the Federal Register on Tuesday, August
14, 2007 (72 FR 45346) relating to the application of section 1045 of
the Internal Revenue Code to partnerships and their partners.
DATES: This correction is effective October 10, 2007.
FOR FURTHER INFORMATION CONTACT: Jian H. Grant at (202) 622-3050 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the subject of this correction are
under section 1045 of the Internal Revenue Code.
Need for Correction
As published, final regulations (TD 9353) contain errors that may
prove to be misleading and are in need of clarification.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Correction of Publication
0
Accordingly, 26 CFR part 1 is corrected by making the following
amendments:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read, in
part, as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.1045-1 is amended by revising the last sentence of
paragraph (c)(1)(i), the subtitle of paragraph (c)(2)(i), the first
five sentences of paragraph (h)(3)(i) Example 3.(i), the fourth
sentence of (h)(3)(i) Example 5.(v), and the first sentence of
(h)(3)(i) Example 12.(ii) to read as follows:
Sec. 1.1045-1 Application to partnerships.
* * * * *
(c) * * *
(1) * * *
(i) * * * A taxpayer other than a C corporation that sells QSB
stock held for more than 6 months at the time of the sale may elect in
accordance with paragraph (h) of this section to apply section 1045 if
replacement QSB stock is purchased by a purchasing partnership
(including a selling partnership).
* * * * *
(2) * * *
(i) General rule.
* * * * *
(h) * * *
(3) * * *
(i) * * *
Example 3. * * *
(i) On January 1, 2008, A, an individual, and B, an individual,
each contribute $500 to UTP (upper-tier partnership) for equal
partnership interests. On February 1, 2008, UTP and C, an
individual, each contribute $1,000 to LTP (lower-tier partnership)
for equal partnership interests. On March 1, 2008, LTP purchases QSB
stock for $500. On April 1, 2008, D, an individual, joins UTP by
contributing $500 to UTP for a 1/3 interest in UTP. On December 1,
2008, LTP sells the QSB stock for $2,000. * * *
* * * * *
Example 5. * * *
(v) * * * In accordance with the principles of Sec. 1.743-
1(j)(3), the amount of A's gain from the March 30, 2009, sale of
replacement QSB1 stock in which A has a $200 negative basis
adjustment equals $300 (A's share of PRS' gain from the sale of
replacement QSB1 stock ($100), increased by the amount of A's
negative basis adjustment for replacement QSB1 stock ($200)). * * *
* * * * *
Example 12. * * *
(ii) Because A purchased within 60 days of PRS' sale of the QSB
stock, replacement QSB stock for a cost equal to A's share of the
partnership's amount realized on the sale of the QSB stock, and
because A made a valid election to apply section 1045 with respect
to A's share of the gain from PRS' sale of the QSB stock, A does not
recognize A's $100 distributive share of the gain from PRS' sale of
the QSB stock. * * *
* * * * *
LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel (Procedure and Administration).
[FR Doc. E7-19869 Filed 10-9-07; 8:45 am]
BILLING CODE 4830-01-P
