Discharge of Indebtedness on Principal Residences and Business Real Property

Article:  This article discusses the differing tax consequences of a borrower’s default and/or indebtedness discharge on recourse versus nonrecourse loans on principal residences. It then addresses what constitutes business indebtedness for purposes of the Sec. 108(a)(1)(D) exclusion from taxation for discharge of qualified real property business indebtedness.
Published on January 13, 2012

Significant Recent Developments in Estate Planning (Part I)

Article:  This two-part article examines developments in estate, gift, and generation-skipping tax planning and compliance between June 2010 and May 2011. Part I considers estate tax reform, cases and rulings, changes made by the 2010 the Tax Relief Act, and other estate tax developments.
Published on January 13, 2012

Selected Issues Concerning the State Income Taxation of Nonresident Trusts and Estates

Article:  This column discusses selected state income tax issues for nonresident trusts that are a direct result of several recent challenges, including societal and marketplace conditions, increasingly complex tax laws, and declining state revenues.
Published on January 13, 2012

Incorporating the Statement on Responsibilities in Personal Financial Planning into a Tax Practice

Article:  This column explains the Statement on Responsibilities in Personal Financial Planning Practice, issued by the AICPA’s PFP Executive Committee, and discusses how practitioners can use it to help clients with personal financial planning.
Published on January 13, 2012

Form 1042-S Penalties

Article:  Beginning with the 2011 tax year, the IRS has doubled the per form penalties for late filings of Form 1042-S and for a Form 1042-S that was improperly completed.
Published on January 13, 2012

IRS Offers Another Mark-to-Market Valuation Safe Harbor

Article:  The IRS has released an Industry Issue Directive instructing its examining agents to offer a safe-harbor election to certain taxpayers under examination regarding the market values used in their mark-to-market calculations.
Published on January 13, 2012

Information Reporting Requirements Affect Corporations and Transferors of Securities

Article:  This item discusses new information reporting requirements that affect brokers, professional transfer agents, trustees, and also corporations undertaking actions in their own stock and acting as transfer agents for their own securities.
Published on January 13, 2012

Unclaimed Property The Nontax State Revenue Generator

Article:  This item discusses the relevance of unclaimed property to tax practitioners, who often find compliance responsibilities and audit notices dropped in their lap.
Published on January 13, 2012

Final Regs. Governing Practice Before the IRS

Article:  Treasury issued final regulations governing practice before the IRS to increase taxpayer compliance and to ensure uniform and high ethical standards of conduct for all tax return preparers.
Published on January 13, 2012

Carried Interest in the Context of Venture Capitalists Business Bad Debt Deduction

Article:  The Tax Court held that a venture capitalist’s $3.6 million bad debt was incurred in connection with his carrying on a trade or business of managing venture capital funds and was fully deductible as an ordinary loss under Sec. 166(a).
Published on January 13, 2012

Controlling Interest Provisions in State and Local Real Estate Transfer Taxes

Article:  A common way for a taxpayer to transfer real estate to a new owner without paying a real property transfer tax has been to transfer an ownership interest in an entity that holds title to the property. However, a number of jurisdictions now require taxpayers who engage in these types of transfers
Published on January 13, 2012

Final Regs. Issued on Killer B Transactions

Article:  The IRS has issued final regulations to close a loophole (known as Killer B transactions) that allowed one or more foreign corporations involved in a triangular reorganization to repatriate earnings tax free to the United States in certain circumstances.
Published on January 13, 2012

Transaction Cost Considerations Rev. Proc. 2011-29 and Other Related Matters

Article:  To eliminate the controversy over the allocation of success-based fees and corresponding documentation requirements, Rev. Proc. 2011-29 povides a safe-harbor election for allocating 70% of success-based fees paid or incurred in a covered transaction to activities that do not facilitate the transaction.
Published on January 13, 2012

Clawback of the Gift Tax

Article:  The lifetime gift tax exclusion increased to $5 million for 2011 and 2012, and there is concern that the IRS will attempt to assess either an additional gift tax or extra estate tax if the lifetime exclusion is subsequently reduced.
Published on January 13, 2012

Sec. 382 Operating Rules Actual Knowledge Regarding Stock Ownership

Article:  An ownership change under Sec. 382 can have an onerous impact by substantially limiting a loss corporation’s ability to utilize its tax attributes. This item discusses Letter Ruling 201110006, which addresses a proposed transaction in which the taxpayer is involved in such a potential change in ownership.
Published on January 13, 2012