By John G. Hodnette Section 338(h)(10) allows a buyer and seller in a qualified stock purchase to elect jointly for the sale of target stock to be treated for tax purposes as a sale of the target’s assets. That is beneficial to the buyer because the transaction is a stock sale for state law purposes (which […]
By Kimberly B. Tyson On February 18th, the Center for Art Law is sponsoring a lecture by Deborah Gerhard, the Paul B. Eaton Distinguished Professor of Law at UNC School of Law. The topic is the “Madonna and Child in a Landscape,” the famous (and infamous) piece that has adorned the North Carolina Museum of […]
By Kimberly B. Tyson On January 6, 2026, in Gibson v. Commissioner, T.C. Sum. Op. 2026-1 (a nonappealable “S” case), the Tax Court sustained the IRS’s disallowance of a charitable contribution deduction of $188,563 for high-end cycling apparel that taxpayers donated in 2019. The court’s analysis of the appraiser regulation reminded me of Jan Brady, […]
By John G. Hodnette Since its enactment on March 30, 2010, in connection with the Affordable Care Act, Section 1411 has assessed an additional 3.8% income tax on individuals, estates, and trusts on the lesser of net investment income (“NII”) or the excess of the taxpayer’s modified adjusted gross income over the threshold amount. There are […]
By Keith A. Wood 1. Taxpayer Denied a Bad Debt Deduction even though the Borrower had Cancellation of Debt Income; Kelly v. Commissioner, 139 F.4th 854 (9th Cir. 2025). Between 2007 and 2010, Mr. Kelly loaned millions of dollars to his business entities. In December 2010, Mr. Kelly cancelled a portion of the debts his […]
By John G. Hodnette When an S corporation sells its assets, often part of the purchase price is paid via a promissory note issued by the buyer. These promissory notes are part of the purchase price and reported on the installment sale method in Sections 453, 453A, and 453B. Under that method, gain on the sale […]
By Kimberly B. Tyson Of the three forums for judicial review of a federal tax dispute, only the Tax Court is a pre-payment forum, meaning a taxpayer can have a tax case heard by the court before paying the tax. In 2024, approximately 80% of the 20,925 petitions filed in the Tax Court were by […]
By John G. Hodnette The 2017 Tax Cuts and Jobs Act included Section 67(h), which eliminated miscellaneous itemized deductions for tax years beginning after December 31, 2017. The 2025 One Big Beautiful Bill Act made that disallowance permanent. One such eliminated deduction is for unreimbursed employee expenses. They include expenses for transportation, travel fares, lodging away […]
By Chris Hannum It is with deep sadness that we share the news of the passing of Steven (“Steve”) Horowitz, a former Chair of our Section (1990–1991) and a respected presence in the North Carolina tax bar for more than five decades. His loss is felt across our professional community, especially by those who practiced […]
By Brian C. Bernhardt The Qualified Offer rules are part of the broader framework for resolving federal tax disputes. As a general rule, taxpayers who prevail in disputes with the IRS may recover reasonable administrative and litigation costs (“Fees and Costs”) only if the IRS’s position was not substantially justified. However, the Qualified Offer rules […]