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

» Chapter 13 – DISABILITY BENEFITS