An Analysis of "Substantiality" Under the Section of 704(b) Final Regulations.
研究了美国税务条例中合伙损益特殊分配的“实质性”定义，提出了两种基于现金流现值比率的量化模型，帮助判断分配是否具有实质性经济效应。
Abstract Special allocations of partnership income and loss are allowed it the allocation has Substantial Economic Effect (SEE). In 1985, SEE was interpreted in final Treasury Regulations that provided an ambiguous definition of substantiality. The purpose of this study is to develop a quantitative model of substantiality from an analysis of the language in the Regulations. We identify two models from the regulations and the professional literature. One model compares the ratio of the present value cash flow detriment of one partner under a special allocation to that partner's present value cash flow under the general allocation. Another model compares the ratio of the present value cash flow detriment of one partner to the present value cash flow enhancement of another partner under the same special allocation. Critical values of the ratios must now be established by the IRS or courts, or inferred from future rulings.