Bruce Ely Quoted in Law360 Tax Authority on Partnership Apportionment Factors

Bradley attorney Bruce Ely was quoted in Law360 Tax Authority on blended apportionment as the Multistate Tax Commission group considers partnership apportionment factors.

“Assume Corporation A owns 25% of AB LLC,” Ely said. “It will report to a state in which it is doing business not only its apportionment factor or factors, depending on whether the state employs single sales factor or maybe double weighted sales factor, but 25% of the apportionment factor or factors of the corporate partner attributable to that state.”

Ely said requiring blended apportionment is increasingly common, but states should use caution.

“That seems to be what most states now require when there are corporate partners, but the partner and partnership must have a unitary business relationship before that method can be employed,” he noted. “And some states [seem to] forget that fundamental constitutional requirement.”

The full article, “MTC Group Considering Partnership Apportionment Factors,” was published by Law360 Tax Authority on September 18, 2024. (login required)