This item provides a brief history of existing tax law in this area and IRS guidance and a summary of the recent developments.
Gains & Losses
A taxpayer was not entitled to defer gain on a disposition of property to a related party that met the Sec. 1031(a) requirements for a like-kind exchange.
Ascertaining the Tax Impact on the Shareholder of a Corporate Assumption of Liabilities in a Sec. 351 Transfer
The transfer of debt to a corporation will create a taxable event in some situations.
Temporary and proposed regulations implement the amendments to the real estate investment trust spinoff rules.
This item examines the potential application of Sec. 304 to transfers of interests in a partnership that owns corporate stock.
Foreign currency straddles may be used to manage foreign currency exposure, but they may carry hidden tax issues.
The IRS issued final rules that prevent taxpayers from transferring losses to corporations.
The Tax Court discussed the application of the “boot” rules under Sec. 356 in a tax-free reorganization.
The Internal Revenue Service finalized rules that limit the ability of a taxpayer to transfer loss property to a corporation.
Selling off and replacing assets could result in a possible taxable gain. A common business practice for avoiding such a gain is to engage in a Sec. 1031 exchange.
Proposed Regulations Would Provide Guidance for Allocation and Absorption of Losses on a Consolidated Return
Proposed regulations address an issue when there is a consolidated net operating loss.
Final regulations issued on Friday clarify the tax treatment of certain terminations of qualified hedging transactions under Sec. 988.
It is not unusual for a taxpayer to make an error on a return that results in a misstatement of a net operating loss or a credit that is then carried forward. These mistakes might not be noticed until after the statute of limitation is closed.
The IRS issued more regulations that take aim at transactions that attempt to avoid the repeal of the General Utilities doctrine.
Temporary regulations prevent corporations from avoiding tax through the use of partnerships.
Proposed Regulations Would Require Gain or Loss Recognition on Certain Installment Obligation Transfers
The IRS issued proposed regulations that would require transferors that transfer installment obligations for equity interests in corporations or partnerships in nonrecognition transactions in satisfaction of those obligations to recognize gain or loss.
Pharmaceutical companies confront several tax differences when determining whether a transaction is a license or sale.
IRS clarified that the amendment to Sec. 56(d) made by the WHBAA did not create new ordering rules for absorbing ATNOLs.
The IRS issued proposed regulations relating to the nonrecognition of gain or loss on certain dispositions of an installment obligation.
The IRS finalized proposed regulations to update the rules that apply to U.S. taxpayers that fail to file gain recognition agreements when they transfer certain property to foreign corporations in nonrecognition transactions.