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Category: Income Taxation (page 1 of 8)

Brodnax & Klein, The Path to Immediate Tax Benefits in Commercial Real Estate, Tax Notes

Frank Brodnax and Travis Klein, of Ellin & Tucker, have authored an article,  The Path to Immediate Tax Benefits in Commercial Real Estate in Tax Notes, which discusses how commercial real estate clients can benefit from the 50 percent bonus depreciation on 39-year property, and they outline planning tools and … Continue reading

Proximity to IRS Office Impacts Audit Risk

Thomas R. Kubick, G. Brandon Lockhart, Lilliam F. Mills & John R. Robinson haave made available their article,IRS and corporate taxpayer effects of geographic proximity, which shows that the proximity of corporate taxpayers to IRS service offices impacts their audit risk.  The abstract of their article is as follows:


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PLR 201710006: Disposition Occurs When Race Car Disassembled

The IRS ruled that race car parts owned by a taxpayer, through disregarded entity that reassembled racing cars during a race season, were an appropriate asset for disposition purposes under Treas.Reg. Sec. 1.168(i)-8(c)(4). The disposition occurred when the taxpayer disassembled each racing car entry into its various parts and permanently withdrew … Continue reading

PLR 201710003: Extension Granted Trust to Make Section 663(b) Distribution

In PLR 201710003, the Service granted a trust an extension of time to file an election to have a distribution deemed paid or credited under Section 663(b).

See PLR 201710003 by clicking here.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.

PLR 201709001: Basis of Property Contributed By S Corp to Charity Determined on Property by Property Basis

The Service ruled, in PLR 201709001, that an S corporation’s computation of the basis of business properties contributed to charity will be determined on a property-by-property basis under the bargain sale rules of Code Section 1011(b).

See full per at PLR 201709001.

Posted by Lewis J. Saret, Co-General Editor, Wealth … Continue reading

Tax Court: No Mortgage Deduction for Payments on Girlfriend’s Mortgage

in James David Jackson v. Commissioner, T.C. Summary Opinion 2017-11, the Tax Court held that the taxpayer could not deduct mortgage interest on mortgage payments made on the taxpayer’s girlfriend’s home, where he resided.

See full opinion at  James David Jackson v. Commissioner.

Posted by Lewis J. SaretContinue reading

IRS Tests Hobby Loss Audit Program for Farms

The IRS has issued guidance on a pilot audit program targeting hobby losses from farming.  The memorandum issued by the IRS begins as follows:


The purpose of this memorandum is to issue guidance on a pilot program for Schedule F Expenses for SB/SE Correspondence Examination. Although this pilot will

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Linda Kotis: Salvaging the 2015 Roller Coaster Ride with Your Retirement Accounts: Roth IRA Conversion

By Linda Kotis

The stock market has been full of crazy swings this year.  Your retirement accounts were buoyed by the 1.2% gain in the Dow Jones Industrial Average on January 8.  Then you cringed as account values bounced around in March with a 333 point drop. You nearly fainted … Continue reading

Clarence McDonald Leland, Jr. v. Commissioner: Tax Court Holds City Attorney Operating Farm Materially Participated in Farm Activity

In Clarence Mcdonald Leland, Jr. v. Commissioner, T.C. Memo 2015-240, the Tax Court held that an attorney practicing law in Jackson Mississippi who operated a farm in Texas materially participated in the farming activities for Code Sec. 469 passive activity loss purposes.

The court stated the following as part … Continue reading

Steve Akers: Legislation Requiring Consistency of Basis with Estate Tax Values and Requiring Information Reporting

Steve Akers, Senior Fiduciary Counsel, Southwest Region, Bessemer Trust, has made available for download his summary of legislation enacted on July 31, 2015, which requires consistency of basis with estate tax values and information reporting.  The abstract for Mr. Aker’s full report reads as follows:

Legislation enacted on July 31,

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Steven N. Levi et al. v. Commissioner: Couple’s Return Not Filed Because Agent Who Signed Return Lacked Authority

In  Steven N. Levi et al, v. Commissioner, T.C. Memo 20-15-118 (June 29, 2015), the Tax Court held that a couple that did not sign their tax return filed an invalid return.  The Tax Court  explained that the agent who signed on their behalf lacked the authority to … Continue reading

Trust Decanting: A Sale Without Gain Realization by Jason Kleinman

Jason Kleinman, Herrick, Feinstein LLP, has made available for download his article, “Trust Decanting: A Sale Without Gain Realization,” which was published in the Real Property, Probate and Trust Law Journal, Vol. 49, Winter 2015.  The Abstract is as follows:

This Article describes why decanting or modifying a trust cannot

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US Tax Court: Failure to Report Gross Income of IRA Distribution

In Morris v. Commissioner of Internal Revenue, the United States Tax Court sought an answer to “whether [the] petitioners failed to report during 2011 taxable distributions from an individual retirement account (IRA).” While the petitioners were under a belief that the money they obtained from their father’s estate would … Continue reading

In Agents We Trust – A Proposal for Material Participation of Trusts by Ryan Pulver, Alan Joseph Wilson

Ryan Pulver, of Jackson Kelly PLLC, and Alan Joseph Wilson, have made available for download their Wyoming Law Review article, In Agents We Trust – A Proposal for Material Participation of Trusts.”  The Abstract reads as follows:

In the business succession planning context, estate planners frequently employ the use of

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IRS Issues Fact Sheet On Taxpayers’ Right to Confidentiality

On March 17, 2015, the Internal Revenue Service (IRS) released a fact sheet on the rights of taxpayers, specifically about confidentiality of information. In this fact sheet, the IRS restructured and grouped taxpayers’ rights in existing tax code into 10 broad categories to make it easier for taxpayers to find … Continue reading

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