Show Original

Archive for the ‘Federal Taxation’ Category

Some Sunshine for Florida Citrus Growers in the Battle Against Citrus Greening

Published: November 23rd, 2015

By: Michael D. Minton Brad Gould Dana M. Apfelbaum

Earlier today the University of Florida’s Institute of Food and Agricultural Sciences (IFAS) announced that its researchers have developed genetically modified citrus trees that show enhanced resistance to citrus greening. These citrus trees may also have the potential to resist canker and black spot. IFAS noted that the commercial viability of these new citrus trees […]

Tax Court Holds that Sale of Real Property Resulted in Ordinary Income Rather than Capital Gain

Published: August 26th, 2015

By: Stephen R. Looney

In Fargo,[1] the Tax Court held that a couple had ordinary income from a property sale by a partnership in which they were partners because the property was sold in the ordinary course of business.  The taxpayer, husband and wife, were partners in Girard Development, L.P. (GDLP), an entity subject to the partnership procedures under […]

IRS Issues Proposed Regulations Eliminating Requirement That Service Provider File Copy of Section 83(b) Election with Tax Return

Published: August 11th, 2015

By: Stephen R. Looney

On 7/17/2015, the IRS issued proposed regulations regarding the Section 83(b) election.  Under the general rule of Section 83(a), if, in connection with the performance of services, property is transferred to any person other than the person for whom such services are performed, the excess of the fair market value of the property as of […]

Circular Flow of Funds in Back-to-Back Loan Transactions May Give Rise to Basis under Section 1366(d)(1)(B)

Published: April 17th, 2015

By: Stephen R. Looney

At the ABA Tax Section S Corporations meeting held in Houston, Texas, on 1/30/2015, government officials defended their decision not to include in the final Section 1366 and Section 1367 S corporation back-to-back loan regulations an example on loan restructurings involving a circular flow of funds.  The statement was made in a panel presentation at […]

Tax Court Recharacterizes Portion of Bonus Paid to Physician as Nondeductible Dividend

Published: April 7th, 2015

By: Stephen R. Looney

In Midwest Eye Center, S.C.,[1] the Tax Court held that $1 million of a $2 million bonus paid to the physician sole shareholder of a personal service corporation was a non-deductible dividend distribution. Under the facts of the case, the taxpayer, a C corporation, conducted an ophthalmology surgery and care center during the tax years at […]

Eighth Circuit Denies Like-Kind Exchange Treatment to Taxpayer Attempting to Avoid Related Party Rules of Section 1031(f)

Published: March 30th, 2015

By: Stephen R. Looney

In North Central Rental & Leasing, LLC,[1] the Eighth Circuit Court of Appeals determined that the taxpayer, North Central Rental & Leasing, LLC (“North Central”) had improperly claimed non-recognition treatment under Section 1031 with respect to gains from certain property exchanges. Butler Machinery Company (“Butler Machinery”) sold agricultural, mining and construction equipment for manufacturers, primarily […]

Tax Court Denies Conservation Easement Deduction Because Property Did Not Constitute a “Qualified Real Property Interest”

Published: March 25th, 2015

By: Stephen R. Looney

In Balsam Mountain Investments, LLC,[1] the Tax Court took a very restrictive view of what qualifies as a “qualified real property interest” under Section 170(h)(2)(C), in granting summary judgment in favor of the IRS disallowing a charitable contribution deduction for a conservation easement. In 2003, Balsam Mountain Investments, LLC executed a perpetual conservation easement agreement […]

President Obama Signs Tax Extenders Bill Into Law

Published: December 23rd, 2014

By: Brad Gould Brian M. Malec

On December 19, 2014, President Obama signed H.R. 5771, the “Tax Increase Prevention Act of 2014” (TIPA), into law. Generally, the bill provides for a one year extension (through 2014) of more than 50 individual, business and energy provisions, many of which have been in place for years but would have expired after 2013 if […]