For your reference, the link below is a letter from the Section of Taxation of the American Bar Association to the IRS concerning certain provisions of the Internal Revenue Code commonly known as the "fractions rule" applicable to real estate partnerships. These provisions are among the ones that real estate partnerships struggle to comply with as they try to implement their desired economic deal. As some of you may have experienced, the fractions rule restricts — sometimes significantly — how real estate partnerships operate. This letter advocates changes to IRS regulations and how they are interpreted to allow real estate partnerships to operate more freely and with more certainty under the fractions rule. Joshua Wanderer, Of Counsel at Klehr Harrison, was one of the letter’s three principal authors and he, along with others at Klehr Harrison, have developed significant expertise in structuring transactions and partnerships to address fractions rule issues.