Corporations - Gains & Losses

TOPICS / CORPORATIONS

July 1, 2009

Effect of Debt Recharacterization on Worthless Securities Deductions

The IRS recently addressed concerns that the recharacterization of intercompany debt as common equity might prevent a worthless securities deduction.

June 1, 2009

Customs Valuation: A Concern for Unsuspecting Tax Practitioners

Customs valuation often involves issues that may be unfamiliar to a tax practitioner. Yet failure to recognize this tax-customs intersection may result in unexpected additional tax (nonduty) costs.

June 1, 2009

Circular Like-Kind Exchange Disallowed

The Tax Court disallowed tax-free treatment for a like-kind exchange transaction in which the taxpayer exchanged properties with a related entity.

June 1, 2009

IRS Reverses Position on Eligibility of Intangibles for Like-Kind Exchange Treatment

The IRS Office of Chief Counsel has announced a change in its position on the use of certain intangible property in Sec. 1031 like-kind exchanges.

May 1, 2009

IRS Releases Guidance on New Five-Year NOL Carryback

The IRS has issued guidance on how eligible small businesses can take advantage of the increased net operating loss (NOL) carryback provisions enacted in the American Recovery and Reinvestment Act of 2009.

April 1, 2009

Like-Kind Exchanges: Deferral Is Not Always the Best Option

Sec. 1031 gives taxpayers the opportunity to defer taxation on the gains they may have on their transactions. Anytime there is an opportunity to defer tax costs, tax practitioners and their clients automatically tend to assume that they should take advantage of the opportunity. However, in the case of like-kind exchanges, it is not always in the taxpayer’s best interest to elect to defer the recognition of gain on realty.

April 1, 2008

Sec. 382 Ownership and Fluctuation in Value

For a corporation with more than one class of stock, the effects stock price fluctuations can play a significant role in determining whether use of the NOLs could become limited as a result of trading and other equity shifts.

January 1, 2008

Significant Recent Corporate Developments

This article summarizes selected income tax developments during the past year affecting corporations, including those that file consolidated returns.

November 1, 2007

Current Developments in S Corporations (Part II)

This article covers S corporation operational issues.

October 1, 2007

Tax Considerations for Corporate Aircraft

Editor: Joel E. Ackerman, CPA, MST In recent years, the number of entrepreneurs acquiring airplanes for their business operations has increased dramatically. Often the aircraft will be placed in a separate entity for legal liability protection and other reasons. Tax advisers need to be aware of the numerous federal income

September 1, 2007

Prop. Regs. Create Capital Gains and Losses for Non-bank Lenders

Editor: Frank J. O’Connell, Jr., CPA, Esq. On August 7, 2006, the IRS issued Prop. Regs. Sec. 1.1221-1(e), in an attempt to clarify the character of gains and losses resulting from sales of loans and notes receivable acquired through purchase or loan origination; see REG-109367-06. While the character of such

August 1, 2007

New Regs. for Use of Foreign Losses Included in U.S. Tax Filings: Dual Consolidated Losses

Editor: Anthony S. Bakale, CPA, M.Tax. On March 19, 2007, new regulations were issued to control the use of losses generated in a foreign jurisdiction and included in a U.S. tax filing; see TD 9315. These final regulations apply to dual consolidated losses (DCLs) incurred in tax years beginning after