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The Final Allocation and Accounting Regulations – What Do They Mean For “Phantom Investment Proceeds”?

The flexibility to reallocate proceeds to expenditures using an accounting method other than direct tracing has been a well-recognized and much-appreciated opportunity under the allocation and accounting rules of IRC section 141. The former proposed section 141 regulations (REG-140379-02, Sept. 26, 2006) (“Proposed Regulations”), now replaced by the final section 141 regulations issued October 27, … Continue Reading

In the New World of the Final Allocation and Accounting Regulations, What Is Left of “Final Allocations”?

Since the final allocation and accounting regulations (“Allocation Regs”) were published on October 27, 2015, they have been a recurring topic of this blog (see here, here, here, and here).  One question yet to be addressed is what, if anything, is the continuing importance of a “final allocation” of tax-favored bond proceeds in the wake … Continue Reading

With a Little Help From My Friends (on how to treat Partnerships)

To follow up on our recent coverage of the “Allocation and Accounting Regulations”,  (here, here, and here) we wanted to point out a helpful rule that that our friends at the IRS have provided the tax-exempt bond community. Treas. Reg. § 1.141-3(g)(2)(v) (shown below) allows an issuer or conduit borrower to “look through” a partnership … Continue Reading

Breaking: Treasury Department Releases Final Regulations for “Allocation and Accounting” of Private Business Use

The Treasury Department has finalized regulations that it proposed in 2006 to address how to allocate tax-exempt bond proceeds and other sources of funds to a project and other related topics. Click here for a copy of the regulations – we’ll have more on these soon.  … Continue Reading

The Tax Lawyer’s Swiss Army Knife – Allocating Bond Proceeds Away from the Flow of Funds

Treasury has provided a valuable yet often overlooked tool in the regulations governing the allocation of bond proceeds to expenditures under IRC §§141 and 148. Using this tool, you can allocate bond proceeds in a way that differs from the flow of funds. Treas. Reg. 1.148-6(d)(1)(iii) allows an issuer to allocate bond proceeds to expenditures … Continue Reading