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Part I: Passive Activity Loss Limitation and Real Estate Professional Tax Rules

Published: May 18th, 2017

By: Stephen R. Looney

Taxpayers who engage in rental real estate activities will generally seek to have rental property losses from such activities characterized as non-passive. In several recent decisions, the Tax Court once again emphasized the importance of taxpayers being able to substantiate the time they claim to spend performing rental real estate services in order to qualify […]

The Florida Commercial Rent Tax: Four Traps for the Unwary

Published: March 28th, 2017

By: Robert S. Goldman

As the only American state with a sales tax on commercial rentals, Florida has a history of presenting businesses with unwelcome surprises in the form of audit assessments. What follows below is a summary of the top four misunderstandings that create taxpayer exposure. Tax base is broader than just “rent.” The measure of tax is […]

Tax Court Holds Income was Improperly Attributed to S Corporation

Published: March 28th, 2017

By: Stephen R. Looney

In a recent case, the Tax Court addressed the issue of whether income should be reported by a Taxpayer providing services or an S corporation established by the Taxpayer. Taxpayers often seek to report income generated from services provided through an S corporation on such S corporation’s tax return, but as the case below demonstrates, […]

IRS’s Informal S Corporation No-Rule List Includes Three New Items

Published: March 16th, 2017

By: Stephen R. Looney

A taxpayer may, for a fee, request a written letter ruling from the IRS interpreting and applying tax laws to the taxpayer’s represented set of facts. However, there are some issues in which the IRS will not issue a letter ruling. Taxpayers should note that the IRS has recently added three new issues to its […]

When Do Disclaimer Clauses Bar Fraud Claims?

Published: February 14th, 2017

By: Darryl M. Bloodworth

When Do Disclaimer Clauses Bar Fraud Claims: Billington v. Ginn-La Pine Island, Ltd., 192 So.3d 77 (Fla. 5th DCA 2016) Background of Case The Plaintiff was an investor from the UK who had invested in Bobby Ginn developments previously. In the 2004-06 time frame, he bought two lots in Bella Collina, a high end development in Lake […]

UHF Relocation under the Spectrum Act Subject to Tax Deferral

Published: January 31st, 2017

By: Brad Gould

In PLR 201702034, the IRS held that a taxpayer’s sale of UHF TV broadcast rights to the FCC pursuant to the Middle Class Tax Relief and Job Creation Act of 2012 (also known as the Spectrum Act) constituted a sale under threat of condemnation of its FCC licenses and related property for purposes of § 1033 […]

Widow Allowed to Expense Previously Expensed Farming Inputs

Published: January 17th, 2017

By: Brad Gould

In the case of Estate of Backemeyer v. Commissioner, 147 TC 17 (2016), the Tax Court held that the widow of a Nebraska farmer was entitled to expense farming inputs she inherited from her husband, who had expensed the same inputs during his life. Mr. Backemeyer, a corn and soybean farmer, purchased farming inputs consisting of seed, […]

Reverse Like-Kind Exchange Qualifies For Section 1031 Non-Recognition Treatment

Published: November 16th, 2016

By: Stephen R. Looney

In Bartell v. Comm’r,[1] the Tax Court held that a reverse like-kind exchange made by a drug store chain which did not qualify for the safe harbor under Rev. Proc. 2000-37,[2] still qualified for non-recognition treatment under Section 1031. The Revenue Procedure was inapplicable because the replacement property was purchased before the publication of the […]