There was an interesting Tax Court decision in a case involving this issue, which was blogged here:
https://taishofflaw.com/2023/11/28/as-such/
Which is easier to read than the opinion itself, available here:
https://assets.kpmg.com/content/dam/kpmg/us/pdf/2023/11/tnf-tax-court-soroban-nov28-2023.pdf
I predict there will be two or three questions posted here in 2024, about this issue. The answer, of course, is "depends on facts and circumstances."
This was easy reading, too.
Tax Court Poised to Determine Who is a Limited Partner Under §1402(a)(13) (mailchi.mp)
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