Year-End Individual Taxation Report
This article covers developments from the past year affecting taxation of individuals, including last year’s tax relief, health care, and small business legislation, regulations, cases, and IRS guidance.
Published on August 24, 2012
Maximizing the Use of the Special $25,000 Rental Real Estate Loss Allowance
Even though rental income or loss is generally passive, a special rule allows qualifying individuals and estates to offset up to $25,000 of nonpassive income with rental real estate losses and credits. This column describes the criteria...
Published on November 01, 2010
Changing Level of Participation in an S Corporation for Tax Planning Purposes
A shareholder materially participates in an S corporation if the shareholder or the shareholder’s spouse is involved in the corporation’s trade or business on a regular, continuous, and substantial basis. This column discusses three tests that practitioners are likely to encounter when dealing with S corporation shareholders.
Published on January 13, 2012
Interaction of the Subpart F Dual-Character Property and Majority-Use Rules
When a controlled foreign corporation (CFC) sells property used in its active business, any gain generally is not treated as subpart F income includible in its U.S. shareholders’ taxable income
Published on June 30, 2012
Disposing of an Activity to Release Suspended Passive Losses
...disposes of the particular activity that generated the losses, (2) generates net passive activity income in the case of a personal service corporation, or (3) generates net passive activity income or net active income in the
Published on May 21, 2010
Treatment of Investment Interest Expense Allocable to Partnerships Trading Activity
IRS rulings confirm the proper tax treatment of investment interest expense allocable to a partnership's trading activity
Published on March 11, 2011
Ordinary Worthless Stock Deductions Characterizing Subsidiary Receipts
An ordinary loss deduction for worthless stock of an affiliated operating subsidiary generally is permitted as long as more than 90% of the subsidiary’s gross receipts are from active operating income. This item discusses the difficulty of determining whether a subsidiary’s gross receipts qualify as active operating income for this purpose
Published on October 04, 2011
Limited Partners and Material Participation A Tax Planning Opportunity
The IRS issued proposed regulations that seek to redefine the term “limited partner” for purposes of the passive activity rules of Sec. 469
Published on March 18, 2013
Teaching Tax Through the Socratic Method
This column explores a type of active learning pedagogy that university and continuing education instructors should consider using in order to help students attain more permanent and meaningful learning
Published on July 22, 2010
Health Care Legislation Requires New Planning Strategies
Two areas that practitioners should examine for opportunities to reduce the impact of Medicare tax increases on their clients are the structure of privately owned businesses and holdings in passive investment activities
Published on September 01, 2010
Applying the New Net Investment Income Tax to Trusts and Estates
This article discusses how the new 3.8% net investment tax applies to trusts and estates.
Published on April 30, 2013
Avoiding the Self-Rental Trap
This item gives a general background of the passive activity rules and the self-rental provision and addresses the consequences of a sale of an operating company when the self-rental property is retained
Published on July 13, 2012
S Corporations with Earnings and Profits
S corporations that have accumulated C corporation earnings and profits have both problems and opportunities. This article discusses the opportunities and explores solutions to the problems.
Published on January 28, 2011
Passive Foreign Investment Companies
This item assesses various planning alternatives that may help U.S. taxpayers avoid the negative aspects of the PFIC regime, including qualifying electing funds, mark-to-market elections, and various planning strategy options.
Published on April 17, 2012
The 3.8% Medicare Tax Proposed Regulations Guidance or More Questions
This item discusses provisions addressed in the 3.8% Medicare tax proposed regulations pertaining to the definition of business income as net investment income, grouping of activities, and treatment of the sale of S corporation stock and partnership interests.
Published on April 01, 2013