This article covers recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
Gains & Losses
Two approaches could yield very different tax results.
Foreign currency straddles may be used to manage foreign currency exposure, but they may carry hidden tax issues.
A transfer of ownership of a closely held business in divorce does not trigger gain or loss if it is directly between the spouses.
This article discusses when the sale of goodwill related to a C corporation is the sale of a shareholder’s personal goodwill and the reasons the gain from the sale of personal goodwill should not be subject to the net investment income tax.
Since the compensatory income is already included in the employee’s Form W-2, the failure to report it in the Form 1099-B cost basis results in double-counting the income unless an adjustment is entered on Form 8949.
Some noncorporate taxpayers who dispose of QSBS in a taxable transaction may potentially exclude the entire gain for federal tax purposes.
This article covers recent developments in the area of individual taxation arranged in Code section order.
A foreign currency option could be a foreign currency contract.
Having an activity classified as passive is not a good result for most taxpayers since they cannot carry back or forward losses under the net operating loss rules.
Court held that heirs to the Campbell Soup fortune had a zero basis in the stock of insurance companies they received when the companies demutualized.
Final regulations issued on Friday clarify the tax treatment of certain terminations of qualified hedging transactions under Sec. 988.
This article covers recent developments in the area of individual taxation, including the treatment of support payments and IRA and qualified plan distributions, the Sec. 469 material participation rules, and the taxability of state economic development credits.
The Tax Court disallowed a taxpayer’s claimed loss, which consisted of payments owed him for services he provided to a company that was part of a Ponzi scheme.
A proposed revenue procedure would permit gamblers engaging in electronically tracked slot machine play an optional safe-harbor method to determine a wagering gain or loss from their slot machine play based on daylong play sessions.
Based on recent Chief Counsel Advice, some taxpayers may need to reevaluate whether they will meet the definition of real estate professional. The results of this analysis may have a significant impact on a taxpayer's treatment of the income from rental real estate activities under Secs. 469 and 1411.
Recent Tax Court decisions illustrate that with the right facts, the sale of personal goodwill, as an asset separate from corporate-owned goodwill, should withstand challenge.
A proposed revenue procedure would permit gamblers engaging in electronically tracked slot machine play an optional safe harbor method to determine a wagering gain or loss from their slot machine play based on day-long play sessions.
The Eleventh Circuit held that a taxpayer's assignment of his rights in an ongoing lawsuit over a land sales contract was the sale of a right to purchase the land subject to the contract, not the sale of the land, and resulted in long-term capital gains to the taxpayer.
Net Investment Income Tax Surprise: Significant Participation Rule Trumping Material Participation Tests
The significant participation rule threatens to swallow broader material participation tests under Sec. 469 for taxpayers applying passive loss rules.