[Federal Register Volume 60, Number 42 (Friday, March 3, 1995)]
[Rules and Regulations]
[Page 11906]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5286]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8585]
RIN 1545-AS00


Allocations Reflecting Built-in Gain or Loss on Property 
Contributed to a Partnership; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

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SUMMARY: This document contains corrections to final regulations [TD 
8585], which were published in the Federal Register for Wednesday, 
December 28, 1994 (59 FR 66724). The final regulations relate to the 
remedial allocation method with respect to property contributed by a 
partner to a partnership and to allocations with respect to securities 
and similar investments owned by a partnership.

EFFECTIVE DATE: December 28, 1994.

FOR FURTHER INFORMATION CONTACT: Deborah Harrington at (202) 622-3050 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections are 
under section 704 of the Internal Revenue Code.

Need for Correction

    As published, the final regulations contain typographical errors 
that are in need of correction.

Correction of Publication

    Accordingly, the publication of the final regulations which is the 
subject of FR Doc. 94-31435, is corrected as follows:


Sec. 1.704-3  [Corrected]

    1. On page 66729, column 1, Sec. 1.704-3, paragraph (d)(7), 
paragraph (iii) of Example 1., line 1, in the paragraph heading, the 
word ``Years'' is corrected to read ``years''.
    2. On page 66729, column 2, Sec. 1.704-3, paragraph (d)(7), 
paragraph (iii)(A) of Example 1., line 1, the word ``commended'' is 
corrected to read ``commented''.
    3. On page 66729, Sec. 1.704-3, paragraph (d)(7), paragraph 
(iii)(C) of Example 1., line 3 of the table is corrected as follows:

------------------------------------------------------------------------
                                                L               M       
                                        --------------------------------
                                          Book    Tax     Book     Tax  
------------------------------------------------------------------------
                                                                        
                  *        *        *        *        *                 
Remedial allocations...................  .....    1,500  .....   <1,500>
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------

    4. On page 66730, columns 1 and 2, Sec. 1.704-3, paragraph (d)(7), 
paragraph (iii)(A) of Example 3. is removed.
    5. On page 66732, Sec. 1.704-3, paragraph (e)(3)(ix), paragraph (i) 
of Example 1., line 5 from the top of column 2, the language ``+$5,000 
(net gain at end of Day 2)+'' is corrected to read ``+$5,000 (net gain 
at end of Day 2)+''.
    6. On page 66732, column 2, Sec. 1.704-3, paragraph (e)(3)(ix), 
paragraph (iii) of Example 1., 13th line, the language ``tax gain from 
the sale of Stock 2 and the loss'' is corrected to read ``tax gain from 
the sale of Stock 2 and the tax loss''.
    7. On page 66733, Sec. 1.704-3, paragraph (e)(3)(ix), paragraph 
(iii) of Example 1., the second table on the page, line 1 is corrected 
as follows:

------------------------------------------------------------------------
                                                       Z                
                                     -----------------------------------
                                                            Reevaluation
                                         Book       Tax        account  
------------------------------------------------------------------------
Opening Balance.....................   $152,500   $152,500            0 
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------

    8. On page 66733, Sec. 1.704-3, paragraph (e)(3)(ix), the second 
table in paragraph (iii) of Example 2, the column heading and line 1 
are corrected as follows:

------------------------------------------------------------------------
                                                    X and Y             
                                     -----------------------------------
                                                            Reevaluation
                                         Book       Tax        account  
------------------------------------------------------------------------
Opening Balance.....................   $150,000   $150,000            0 
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------

Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 95-5286 Filed 3-2-95; 8:45 am]
BILLING CODE 4830-01-P