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)

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)

Sharon Klein, Warn Clients About Change in Taxation of Trust Income After Divorce

Klein published an article in the Trusts & Estates magazine describing how the 2017 Tax Cuts and Jobs Act changed how income from certain trusts is taxed during a divorce. She urges practitioners to take care in the trust creation process during a marriage and carefully analyze the tax impact of trusts in the event … Continue reading Sharon Klein, Warn Clients About Change in Taxation of Trust Income After Divorce

Schreiber, IRS permits certain partnerships to file superseding partnership returns

Schreiber describes how the IRS is allowing certain partnerships the opportunity to file superseding 2018 tax returns in order to correct errors the partnerships could have made on their previously-filed returns. According to Schreiber, "The relief applies to partnerships that had timely filed their Forms 1065, U.S. Return of Partnership Income, and Schedules K-1 (Form … Continue reading Schreiber, IRS permits certain partnerships to file superseding partnership returns

PLR 20193307: CLAT Established in Rev Trust

In PLR 201933007, the IRS ruled regarding the annuity and estate tax deduction of a revocable trust, making the following rulings: the annuity amount equal to five percent of the fair market value of the initial trust estate, as determined by the trust’s grantor and the grantor’s spouse, would be an ascertainable amount. In addition, … Continue reading PLR 20193307: CLAT Established in Rev Trust