Tax Planning for Retirees

Retiring Partners and Sole Proprietors

  • § 12.01 Overview of Taxation of Retiring Partners and Sole Proprietors
  • —–[1] Treatment of Partners and Proprietors Who Are Self-Employed Individuals
  • —–[2] Treatment of Partners Under Certain Nonqualified Plans
  • —–[3] Payments to Retired Partners Under Section 736
  • —–[4] Two Components to Section 736 Payments
  • —–[5] The Asset Payment Component of Section 736 Payments
  • —–[6] The Retirement Payment Component of Section 736 Payments
  • —–[7] Section 409A Generally Not Applicable to Section 736 Payments
  • —–[8] Section 736 Payments to Decedent’s Estate or Other Successor-In-Interest
  • —–[9] Applicability of Self-Employment Tax to Retired Partners
  • § 12.02 Partners and Proprietors as “Self-Employed Individuals” Under Retirement Plans
  • —–[1] Self-Employed Individuals Generally Treated as Employees
  • —–[2] Some Special Rules for Self-Employed Individuals
  • § 12.03 Treatment of Partners Under Certain Nonqualified Plans
  • —–[1] Treatment of Partners Under Funded Nonqualified Plans Not Funded by Trusts
  • —–[2] Treatment of Partners Under Unfunded Nonqualified Plans
  • § 12.04 Special Section 736 Provisions for Retiring Partners
  • —–[1] Nature and Composition of Section 736 Payments
  • —–[2] Allocation of Section 736 Payments to Asset and Retirement Components
  • —–[3] Capital Gain Generally Recognized on 736 Asset Payments
  • —–[4] Retirement Payments Treated as Guaranteed Payments or Distributive Share
  • —–[5] Special Treatment of Substantially Appreciated Inventory
  • —–[6] Examples Illustrating the Characterization of Section 736 Payments
  • —–[7] Applicability of Section 409A Provisions to Section 736 Payments
  • —–[8] Section 736 Payments to a Successor-In-Interest of a Deceased Partner
  • —–[9] Alternative Sale of Retiree’s Partnership Interest to Other Partners
  • —–[10] Applicability of Tax on Net Investment Income
  • § 12.05 Applicability of the Self-Employment Tax to Retired Partners

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