Partnerships Struggle With Impact of US Corporate Minimum Tax

A partnership is not subject to a new corporate alternative minimum tax but its financial statement income could determine if its corporate partner is liable.

Confusion lingers for partnerships as to who and how much tax is paid as practitioners await guidance on the corporate AMT outlined in President Joe Biden’s tax-and-climate law—known as the Inflation Reduction Act.

Applicable corporations or companies that meet an income test, excluding S corporations, regulated investment companies, or real estate investment trusts, will have to determine if they exceed the $1 billion threshold of average annual applicable financial statement income over a ...