Steve Gorin, Basis step-up: Planning for married couples

Gorin outlines how, "When a married person dies and passes assets outright or in a qualifying trust for the surviving spouse, those assets receive a new basis (hopefully a step-up instead of a reduced basis) but, due to an unlimited marital deduction, are not subject to estate tax. At the surviving spouse’s death, for estate … Continue reading Steve Gorin, Basis step-up: Planning for married couples

Baptiste, Impact of S corp shareholder agreements in M&A transactions (AICPA)

Baptiste describes recent activity in the merger-and-acquisition market for private companies and how transactions in the market have been structured as sales of stocks. Reportedly, sellers prefer this format because "they receive capital gain treatment on the entire transaction" while buyers "have been reluctant to purchase stock, as they do not receive a basis step-upon the … Continue reading Baptiste, Impact of S corp shareholder agreements in M&A transactions (AICPA)

Nitti, IRS Provides clarify in second round of opportunity zone regs (AICPA)

Nitti describes how the April 2019 proposed IRS regulations "amending and supplementing proposed regulations it had issued the previous October concerning investments in qualified opportunity zones (QOZs)" addressed several important questions such as "how Sec. 1231 gains are netted as gain eligible to be deferred upon reinvestment into a qualified opportunity fund (QOF)." Other notable … Continue reading Nitti, IRS Provides clarify in second round of opportunity zone regs (AICPA)

Beavers, Taxpayer Bill of Rights violation does not invalidate notice of deficiency (AICPA)

Beavers writes about the impact of a recent decision in which the Tax Court "refused to invalidate a notice of deficiency or provide other relief to a taxpayer who claimed that the notice was invalid because she had been deprived of the rights guaranteed to her by the Taxpayer Bill of Rights during her IRS … Continue reading Beavers, Taxpayer Bill of Rights violation does not invalidate notice of deficiency (AICPA)

Strausfeld, Federal court rejects change to substantial-donor reporting requirement (AICPA)

Strausfeld outlines the impact of a recent Montana federal court decision stating that, "if the IRS wishes to no longer require tax-exempt organizations to report information about their substantial financial donors, it must follow a proper notice-and-comment process." Reportedly, "U.S. District Judge Brian Morris concluded that the IRS should have allowed greater public input before … Continue reading Strausfeld, Federal court rejects change to substantial-donor reporting requirement (AICPA)

Schreiber, Taxpayers may revoke or make late bonus depreciation elections (AICPA)

Schreiber outlines how the IRS recently announced their decision to allow taxpayers to alter their bonus depreciation treatment for property acquired after Sept. 27, 2017, and placed in service during a tax year that includes Sept. 28, 2017. Reportedly, this decision comes as a response to comments from taxpayers regarding the August 2018 Sec. 168(k) … Continue reading Schreiber, Taxpayers may revoke or make late bonus depreciation elections (AICPA)

Masciantonio, The QBI deduction for rental real estate activity (AICPA)

Masciantonio tackles the following question: "Is a rental real estate activity considered a trade or business for tax purposes, or merely an investment?" He describes how the question has gained attention with recent regulations regarding the qualified business income (QBI). The Tax Cuts and Jobs Act introduced the 20% QBI deduction under Sec. 199A, which … Continue reading Masciantonio, The QBI deduction for rental real estate activity (AICPA)