X and Y form XY partnership for the purpose of constructing an apartment building. X...
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X and Y form XY partnership for the purpose of constructing an apartment building. X and Y would like Z an architect, to design the building. Zs fee for performing architectural services of this type is $ X and Y propose that, in lieu of paying Z $ she receive an interest in the XY partnership. Zs partnership interest would entitle her to percent of the partnerships gross income for its first three years of operations and then Zs interest in the partnership would terminate. X and Y have obtained signed lease agreements with respect to most of the buildings apartments. Assume XY partnership has $ of gross rental income, and $ net rental income, per year, before accounting for Zs share. How would the proposed disguised payment for services regulations apply to these facts?
X and Y form XY partnership for the purpose of constructing an apartment building. X and Y would like Z an architect, to design the building. Zs fee for performing architectural services of this type is $ X and Y propose that, in lieu of paying Z $ she receive an interest in the XY partnership. Zs partnership interest would entitle her to percent of the partnerships gross income for its first three years of operations and then Zs interest in the partnership would terminate. X and Y have obtained signed lease agreements with respect to most of the buildings apartments. Assume XY partnership has $ of gross rental income, and $ net rental income, per year, before accounting for Zs share. How would the proposed disguised payment for services regulations apply to these facts?
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