At Risk Limitation Affecting the Deductions Permitted to Members of Entities Taxed as Partnerships Based on Member Loans

One of the advantages of conducting business in a partnership or limited liability company taxed as partnership is the pass through of losses to members of the organization, which they are entitled to deduct against their other sources of income.  However, the ability to benefit from these losses is subject to two limitations.  First, a…

Pass-Through Entity Withholding In Massachusetts

In 2009 the Department of Revenue published 830 CMR 62B.2.2, a regulation for the purpose of ensuring collection of income taxes due from nonresident taxpayers with respect to Massachusetts source income allocated to them from pass-through entities (the “Regulation”). This requirement applies to all such entities that maintain an office or engage in business in…