The Tax Cuts and Jobs Act (TCJA) includes several changes that affect both partnerships and their partners and LLCs and their members that are treated as partnerships for tax purposes. Most of the changes are good news. Here’s what you need to know.

Technical Termination Rule Repealed (Good)

Under prior law, a partnership or an LLC treated as a partnership for tax purposes was considered terminated for federal income tax purposes if, within a 12-month period, there was a sale or exchange of 50 percent or more of the partnership’s or LLC’s capital and profits interests.

This so-called technical termination rule was generally unfavorable because

it could require you to file two short-period partnership tax returns for the year in which the technical termination occurred,

it restarted the depreciation periods for the partnership’s or LLC’s depreciable assets, ... Log in to view full article.