Tax Reform Implications for Fiduciaries

By Nicole Pursley The Tax Cuts and Jobs Act of 2017 (the Tax Act) made significant changes to the United States Tax Code, with implications on virtually all areas of taxation, including some that affect fiduciaries. This article provides a broad overview of some tax implications that may be of importance to trust and estate … Continue reading Tax Reform Implications for Fiduciaries

Crawford & Blattamachr: Basis and Bargain Sales: Income Tax and Other Concerns, The Tax Lawyer (2020)

Bridget J. Crawford, Pace University School of Law, and Jonathan G. Blattmachr, have made available for download their forthcoming Tax Lawyer article, Basis and Bargain Sales: Income Tax and Other Concerns. The Abstract is as follows: This article explores the income tax consequences of the sale during lifetime and at death of property for less … Continue reading Crawford & Blattamachr: Basis and Bargain Sales: Income Tax and Other Concerns, The Tax Lawyer (2020)

IRS updates guidance on business expense deductions for meals and entertainment

The Internal Revenue Service has issued proposed regulations on the business expense deduction for meals and entertainment following changes made by the Tax Cuts and Jobs Act (TCJA). The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. It also limited the deduction for expenses related to food and … Continue reading IRS updates guidance on business expense deductions for meals and entertainment

Entin: Tax Reform Presents Opportunities for Foreign Investors in U.S. Businesses Holland & Knight Alert (Feb. 20, 2020)

Seth J. Entin, of Holland & Knight, has published an article, Tax Reform Presents Opportunities for Foreign Investors in U.S. Businesses Holland & Knight Alert (Feb. 20, 2020). The abstract is as follows: The U.S. Tax Cuts and Jobs Act (the TCJA), which was enacted at the end of 2017, dramatically changed the U.S. cross-border … Continue reading Entin: Tax Reform Presents Opportunities for Foreign Investors in U.S. Businesses Holland & Knight Alert (Feb. 20, 2020)

Bloomberg Special Report: State Taxation of Passthrough Entities

Bloomberg is making available for download without charge its special report, Pass-Through Entities Face Myriad State-Level Taxes, Compliance Obligations. The summary is as follows: While pass-through entities (PTEs) are the most common form of business entities in the U.S., identifying whether a PTE is subject to tax at the state level can be surprisingly complicated.  … Continue reading Bloomberg Special Report: State Taxation of Passthrough Entities

Morse: Important (2019) Developments in Federal Income Taxation

Professor Edward A. Morse, Creighton U., has made available for download his paper, Important Developments in Federal Income Taxation. The Abstract is as follows: This outline covers significant developments in federal income taxation along with a few other interesting or noteworthy tax topics arising during the preceding calendar year. It offers a selective treatment focusing … Continue reading Morse: Important (2019) Developments in Federal Income Taxation

TaxProf Blog – Bryan Camp: Lesson From The Tax Court: Drafting Error Costs Client $16 Million Deduction (Feb. 10, 2020)

Bryan Camp has published an article on the Tax Prof Blog, entitled Lesson From The Tax Court: Drafting Error Costs Client $16 Million Deduction (Feb. 10, 2020).  The article begins as follows: Tax statutes and tax regulations mostly use words to talk about numbers.  One of the basic lessons I must teach students is how … Continue reading TaxProf Blog – Bryan Camp: Lesson From The Tax Court: Drafting Error Costs Client $16 Million Deduction (Feb. 10, 2020)

Essner v. Commissioner, T.C. Memo 2020-23: Distributions From Inherited IRA Considered Taxable Income

The Tax Court held that taxpayer’s IRA distributions were taxable income for two tax years at issue.  Taxpayer inherited the IRA from his mother and received two separate distributions during the two tax years at issue, which he did not report because he did not believe he owed tax on the distribution.  At trial, taxpayer … Continue reading Essner v. Commissioner, T.C. Memo 2020-23: Distributions From Inherited IRA Considered Taxable Income

Rev. Rul. 2020-05: Adjustments to basis for life insurance contracts

The IRS has released an advance version of Rev. Rul. 2020-05 that updates guidance previously provided in Rev. Rul. 2009-13 and Rev. Rul. 2009-14 for adjustments to basis for life insurance contracts to account for the changes to section 1016(a), as amended by the Tax Cuts and Jobs Act. Click here to download Rev. Rule … Continue reading Rev. Rul. 2020-05: Adjustments to basis for life insurance contracts

Railroad Holdings, LLC v. Commissioner, T.C. Memo 2020-22 (Feb. 5, 2020): LLC Not Entitled to Charitable Conservation Deduction for Conservation Easement

In Railroad Holdings, LLC v. Commissioner, T.C. Memo 2020-22 (Feb. 5, 2020) the Tax Court held that an LLC was not entitled to a charitable contribution deduction for a conservation easement. The taxpayer executed a deed declaring a conservation easement in favor of a tax-exempt charitable organization. The deed provided that, if the easement was … Continue reading Railroad Holdings, LLC v. Commissioner, T.C. Memo 2020-22 (Feb. 5, 2020): LLC Not Entitled to Charitable Conservation Deduction for Conservation Easement

Merrell v. Commissioner, T.C. Summary Opinion 2020-5 (Jan. 16, 2020): 10% Penalty Applies – Disability Exception for Certain IRA Distributions Don’t Apply to Owner’s Spouse is Disabled

The Tax Court, in a summary opinion in Merrell v. Commissioner, T.C. Summary Opinion 2020-5 (Jan. 16, 2020), held that the disability exception to the 10% additional tax on certain IRA distributions did not apply when the IRA owner's spouse was disabled, not the owner himself. To see full opinion, click Merrell v. Commissioner, T.C. … Continue reading Merrell v. Commissioner, T.C. Summary Opinion 2020-5 (Jan. 16, 2020): 10% Penalty Applies – Disability Exception for Certain IRA Distributions Don’t Apply to Owner’s Spouse is Disabled

Carter v. Commissioner, T.C. Memo 2020-21: Married Individuals Denied Charitable Contribution Deductions; Supervisory Approval Not Met

In Carter v. Commissioner, the Tax Court upheld the disallowance of charitable contribution deductions for the conveyance of an easement to a qualified organization. The opinion synopsis is as follows: DH, a partnership of which Ps were partners, conveyed to NALT, a "qualified organization" within the meaning of I.R.C. sec. 170(h)(3), an easement that restricts … Continue reading Carter v. Commissioner, T.C. Memo 2020-21: Married Individuals Denied Charitable Contribution Deductions; Supervisory Approval Not Met

IRS Tax Practice Unit on Tax Home for Purposes of IRC Section 911

The IRS has published a tax practice unit on the determination of a tax home for purposes of Code Section 911, dealing with US citizens or residents living abroad. The summary is as follows: This Unit supersedes the 12/15/14 Unit with the same title.  This Unit discusses the factors to be considered in determining an … Continue reading IRS Tax Practice Unit on Tax Home for Purposes of IRC Section 911

IRS Tax Practice Unit on Source of Income for Nonresident Alien Individuals

The IRS has published a tax practice unit on source of income for nonresident aliens. The summary is as follows: NOTE: This Practice Unit was updated to incorporate changes due to the Tax Cuts and Jobs Act for tax years beginning after 12/31/2017 and supersedes the 05/12/16 Unit with the same title. Source of income … Continue reading IRS Tax Practice Unit on Source of Income for Nonresident Alien Individuals

Information Letter 2019-0029: Testamentary Transfer of Series EE Bonds to Trust is Taxable Event

In Information Letter 2019-0029 the IRS ruled that a testamentary transfer of Series EE Bonds to a trust is taxable event. The contents of Information Letter 2019-0029 is as follows: This letter responds to your letter dated July 30, 2019, in which you requested information on the federal income tax consequences of the testamentary transfer … Continue reading Information Letter 2019-0029: Testamentary Transfer of Series EE Bonds to Trust is Taxable Event

KPMG report: Analysis and observations about final regulations and future of opportunity zone investments (Jan. 23, 2020)

KPMG has released it's 48 page report, Analysis and observations about final regulations and future of opportunity zone investments. The summary is as follows: The statutory opportunity zone regime allows the deferral of all or part of a taxpayer’s gain that would otherwise be includible in income if the gain is invested into a qualified … Continue reading KPMG report: Analysis and observations about final regulations and future of opportunity zone investments (Jan. 23, 2020)

IRS Launches Free File (Jan. 13, 2020)

In IR-2020-6, the IRS announced its free file program. It's announcement reads as follows: Most taxpayers can get an early start on their federal tax returns as IRS Free File – featuring brand-name online tax providers − opens today at IRS.gov/freefile for the 2020 tax filing season. Taxpayers whose adjusted gross income was $69,000 or less in 2019 – … Continue reading IRS Launches Free File (Jan. 13, 2020)

IRS Updated Audit Guide: Structured Settlements

The IRS has updated its Audit Techniques Guide that addresses excise tax on structured settlement factoring transactions. Audit Guides focus on developing highly trained examiners for particular market segments by presenting examination techniques, common and unique industry issues, business practices, industry terminology and other information. To see the updated Structured Settlement Audit Guide click here.

IRS: Updated Audit Techniques Guide: Real Estate Foreclosures, Short Sales and Cancellation of Debt

The IRS has updated its Audit Techniques Guide that addresses the tax consequences for real estate property that is disposed of through foreclosure, short sale, deed in lieu of foreclosure and abandonments. Audit Guides focus on developing highly trained examiners for particular market segments by presenting examination techniques, common and unique industry issues, business practices, … Continue reading IRS: Updated Audit Techniques Guide: Real Estate Foreclosures, Short Sales and Cancellation of Debt

Higher Education Savings and Planning: Tax and Nontax Considerations by Philip Manns and Timothy M. Todd (Nov. 6, 2019)

Philip Manns and Timothy Todd have made their paper, Higher Education Savings and Planning: Tax and Nontax Considerations, available for download. This article was published as a part of the Texas A&M Law Review. The abstract of this article, available on SSRN, reads as follows: Funding higher education is among the critical financial decisions made … Continue reading Higher Education Savings and Planning: Tax and Nontax Considerations by Philip Manns and Timothy M. Todd (Nov. 6, 2019)