AICPA Comments on Proposed Regulations Relating to the ...
The reference to reg. sections 1.446-2(e) and 1.1275-2(a) in the Proposed Regulations may suggest that a transfer of any accrued interest receivable to a partnership is not subject to section 721. However, when an accrual basis creditor transfers a debt instrument to a partnership, it would have already recognized the accrued interest income. ................
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