Corporations - Gains & Losses

TOPICS / CORPORATIONS

May 1, 2017

Tax Court upholds non-safe-harbor reverse like-kind exchange

The Tax Court’s decision in Estate of Bartell alleviates uncertainty about structuring
a reverse like-kind exchange intended to qualify for nonrecognition treatment.

April 1, 2017

Ordinary loss deductions under Sec. 165(g)(3) in the S corp. context

This item discusses whether S corporations should be entitled to an ordinary loss under Sec. 165(g)(3) as a matter of law.

April 1, 2017

Disposing of passive activities

Disposing of property related to a passive activity does not resolve all matters related to the property.

February 1, 2017

Related-Party Like-Kind Exchange Had Tax-Avoidance Purpose, Court Holds

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.

February 1, 2017

Sec. 1234A and Termination Fees

This item provides a brief history of existing tax law in this area and IRS guidance and a summary of the recent developments.

January 1, 2017

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.

January 1, 2017

Royalties on Pharmaceutical Technology Taxable as Ordinary Income, Tax Court Holds

Tax Court held that royalties received by an S corporation under a license agreement are taxable as ordinary income to the S corporation’s individual shareholder.

August 1, 2016

Corporations Restricted From Tax-Free REIT Spinoffs

Temporary and proposed regulations implement the amendments to the real estate investment trust spinoff rules.

June 1, 2016

Final Rules Define Loss Importation Property

The IRS issued final rules that prevent taxpayers from transferring losses to corporations.

June 1, 2016

Sec. 304 and Rev. Rul. 99-6: Fitting a Triangular Peg in a Round Hole

This item examines the potential application of Sec. 304 to transfers of interests in a partnership that owns corporate stock.

June 1, 2016

Foreign Currency Straddles and Transactions Present Complex Tax Issues

Foreign currency straddles may be used to manage foreign currency exposure, but they may carry hidden tax issues.

May 1, 2016

Gain and Loss Recognition Under Sec. 356(c)

The Tax Court discussed the application of the “boot” rules under Sec. 356 in a tax-free reorganization.

May 1, 2016

Changes to the BIG Recognition Period of Sec. 1374(d)(7)

The potential effect of the built-in-gain tax is often a significant consideration during pending acquisitions involving an S corporation.

March 25, 2016

Loss Importation Rules Limit Built-In Losses

The Internal Revenue Service finalized rules that limit the ability of a taxpayer to transfer loss property to a corporation.

December 1, 2015

Calculating Basis in Debt

Direct shareholder loans to an S corporation can be very important tools for tax planning.

November 1, 2015

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.

November 1, 2015

Applicability of Sec. 1031 in Exchange of Agreements

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.

October 1, 2015

Should S Corporations Get Ordinary Loss Treatment for Losses on Subsidiary Stock?

The question of whether an S corporation should be treated the same as a C corporation when its subsidiary corporation is insolvent has not been definitively answered.

September 4, 2015

Rules Target Abuse of “Legging Out” of Foreign Currency Hedges

Final regulations issued on Friday clarify the tax treatment of certain terminations of qualified hedging transactions under Sec. 988.

September 1, 2015

Statute of Limitation for Tax Carryovers

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.