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LSDefine

Simple English definitions for legal terms

collapsible partnership

Read a random definition: Section 11

A quick definition of collapsible partnership:

A partnership is when two or more people own and run a business together to make money. There are different types of partnerships, like a general partnership where everyone shares equally, or a limited partnership where some people only invest money and don't manage the business. A collapsible partnership is when partners plan to end the partnership before making any money, and there are rules about how taxes are paid.

A more thorough explanation:

A collapsible partnership is a type of partnership where partners intend to dissolve it before they realize any income. This type of partnership is formed with the intention of avoiding taxes on unrealized receivables or inventory that has increased substantially in value. However, any partner's gain resulting from such assets will be treated by the IRS as ordinary income rather than as capital gain.

For example, if two partners form a collapsible partnership to invest in a real estate property and sell it before any income is realized, any gain resulting from the sale will be treated as ordinary income by the IRS.

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ig ppl be backin out of attending pitt?
yup.
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aint no 1 wanna be second fiddle
DefinitelyRobbingBanks
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Miami is 2k? Big yikes
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EVER
9:51
$1,500 my b
9:53
$1,000 man. No good spot with all the deposits in one place, some1 needs to make a list
Mostlylegal
9:54
yale seat deposit is one mcchicken
9:55
lmfao. what is ur record for mcchickens? I think I pounded 10 mcdoubles and 10 chickens once
[] c0bra1
9:59
i had 1 mcchicken in like 2012 and thats it
9:59
@c0bra1: wow what are you, a normal human being?
[] c0bra1
9:59
i like wendys better
[] c0bra1
9:59
im definitely not normal, dont worry
babycakes
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Everyone always talks about billboard lawyers. Not enough love for side of the bus lawyers
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yes. also, bench back rest lawyers are also neglected
DefinitelyRobbingBanks
10:16
Don't forget the ever venerable back of the bus lawyers with ads that are crusty from exhaust
180letmein
10:45
@llama: that's crazy...
180letmein
10:45
I downed 40 mcchickens max
180letmein
10:45
Weak
10:47
@180letmein: 40?! wow that is impressivee
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i get 2 mcchickens, double cheeseburger, fries, 4 pc nuggets, and a drink for 9 dollars
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mcdonalds can't be topped
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tru tru
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waitlisted at yeshiva....
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sad
180letmein
11:05
Sorry I mean mcnuggets not mcchickens
180letmein
11:05
@Thataintme: YESHIVA??? WITH THOSE STATS?
I got waitlisted by FSU despite going to FSU and being above their 75 percentile
Explain
180letmein
11:14
Late apps?
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