Extract to table

Applicable Legal Authority The primary statutory authority governing this issue is IRC § 707(a)(2)(A), which provides that, if a partner performs services for a partnership, and there is a related direct or indirect allocation and distribution to such partner, and the performance of such services and the allocation and distribution, when viewed together, are properly characterized as a transaction occurring between the partnership and a partner acting other than in his capacity as a member of the partnership, then such transaction shall be treated as a transaction between the partnership and one who is not a partner

The six factors, all of which must be weighed under a facts-and-circumstances analysis, are: (i) Entrepreneurial risk

Section 1061 provides that, notwithstanding the general one-year holding period for long-term capital gain treatment under IRC § 1222, net long-term capital gain with respect to an "applicable partnership interest" ("API") held by a taxpayer shall be treated as short-term capital gain to the extent such gain is attributable to assets held for three years or less

The difference between the One Year Disposition Amount and the Three Year Disposition Amount represents the amount of gain that must be recharacterized from long-term capital gain to short-term capital gain under § 1061

Any discrepancies between the Fund's internal records and Ridgeline's records must be identified and resolved before the analysis is presented to the IRS

Applicable Legal Authority IRC § 709(a) provides the general rule that no deduction shall be allowed for amounts paid or incurred to organize a partnership or to promote the sale of (or to sell) an interest in such partnership (i