C Corporation Income Taxation

TOPICS

December 1, 2018

IRS clarifies deductibility of business meals

The IRS issued guidance on the deductibility of meal and entertainment expenses after the modification of Sec. 274 by the TCJA.

November 27, 2018

Proposed regs. outline new business interest expense limitation

The IRS issued proposed regulations on the business interest expense limitation in Sec. 163(j), which was amended by the law known as the Tax Cuts and Jobs Act.

November 1, 2018

Move to territorial system may not discourage profit shifting

The shift to a territorial system was designed to help dissuade U.S. companies from moving profits overseas, but it may make the practice more rewarding instead.

November 1, 2018

IRS defines covered employees and grandfathered employment contracts under Sec. 162(m)

The IRS issued guidance regarding amended Sec. 162(m), which limits the allowable deduction for remuneration paid by any publicly held corporation to a covered employee to $1 million.

November 1, 2018

Qualified small business stock gets more attractive

The new lowered corporate tax rate will probably lead to more C corporations and a resulting increase in taxpayers’ interest in the Sec. 1202 100% exclusion on gain from the sale of QSB stock.

November 1, 2018

Tax pitfalls of owning a marijuana business

Essentially, for federal tax purposes, marijuana businesses pay income taxes on their gross profit instead of their net income because below-the-
line deductions are not allowed.

October 3, 2018

Meals continue to be deductible under new IRS guidance

The IRS issued guidance on the deductibility of meal and entertainment expenses after the modification of Sec. 274 by the TCJA.

October 1, 2018

Revisiting the application of Sec. 280G on partnerships and LLCs

Depending on how a taxpayer’s ownership is structured, the sale of a partnership interest can have a Sec. 280G impact on partners or members that are C corporations.

October 1, 2018

Reassessing the tax benefits of IC-DISCs

Due to TCJA tax rate differential changes, taxpayers may find that the tax benefits of using an IC-DISC
no longer outweigh the compliance and maintenance costs.

October 1, 2018

IRS issues Sec. 965 transition tax regs.

The IRS issued proposed regulations on the Sec. 965 transition tax that requires U.S. shareholders of deferred foreign income corporations to pay tax on post-1986 deferred income.

October 1, 2018

Third Circuit relies on Ilfeld doctrine to deny consolidated group deductions for duplicated losses

To satisfy the Ilfeld standard, the court noted that there is a presumption that regulations do not permit double deductions for the same loss.

October 1, 2018

An old friend reconsidered: Post-TCJA Sec. 338(g) elections for foreign targets

the TCJA’s implementation of a hybrid territorial international tax regime mitigates the benefit of the election and may induce taxpayers to not make the election to avoid additional tax liability on the eventual sale of foreign target shares.

October 1, 2018

Different SALT flavors of mandatory deemed repatriation under Sec. 965

This item discusses new trends in states’ conformity with or decoupling from Sec. 965.

September 1, 2018

Sec. 163(j) places renewed importance on tax shelter status

The exemption to the limitation on business interest under Sec. 163(j) does not apply to a tax shelter prohibited from using the cash-receipts-and-disbursements method of accounting under Sec. 448(a)(3).

September 1, 2018

Leasing property to a corporation

Shareholders can reap several benefits by leasing property to their corporation instead of transferring
ownership to the company.

September 1, 2018

Timing of the tax deduction for worthless intangibles

The challenge taxpayers frequently face is determining the date of sale, abandonment, or worthlessness.

September 1, 2018

LB&I campaigns update

The IRS’s LB&I division implemented a major restructuring intended to make better use of IRS
resources.

September 1, 2018

Restructuring foreign investment in U.S. real property

The TCJA has given a windfall benefit to foreign investors and developers in U.S. real estate due to the drop in the corporate tax rate from 35% to 21%.

August 22, 2018

IRS provides initial guidance on new Sec. 162(m)

The IRS issued guidance regarding amended Sec. 162(m), which limits the allowable deduction for remuneration paid by any publicly held corporation to a covered employee to $1 million.

August 7, 2018