Deemed Asset Sales Under Rev. Rul. 99-5
Revenue Ruling 99-5 discusses the tax treatment of the purchase of some but not all of the membership interests in a wholly-owned LLC. Pursuant to Reg. §…
Tax Benefit Rule
The tax benefit rule was originally established by case law but later codified as Section 111. It provides a taxpayer is not permitted to retain the tax…
How Are Restricted Stock Units Taxed?
Employers often issue incentive stock to employees to promote retention and performance. Restricted Stock Units or “RSUs” are one of many ways to do so.…
Federal Income Tax Update: Part 4
I. Termination of S Corporation Status was Inadvertent where Shares were Owned by an IRA. In PLR 202319003, the IRS again demonstrated its willingness to…
Recharacterizing Gain on the Sale of Depreciable Property Between Related Parties
Section 1239 provides gain on the sale or exchange of certain depreciable property between related taxpayers is taxed at ordinary income rates rather than the…
Changes to R&D Deductions and Credits
The Tax Cuts and Jobs Act of 2017 made changes effective in 2022 for the R&D deduction under Section 174 as well as the interaction between that deduction…
Federal Income Tax Update: Part 3
Recent Cases Involving the Mailbox Rule, Time Limits for Filing Tax Court Petitions, and Equitable Tolling for Late Filed Petitions Over the last few months,…
A Message from the Tax Section Chair
Greetings to the NCBA Tax Section! I would like to welcome everyone to a new year of section membership and activities. On behalf of myself and the Tax…
Timing of Deductions Under Section 461
Taxpayers primarily focus on the ability to take a deduction. Another consideration, however, is the timing of the deduction. Section 461 provides the rules…
Statute of Limitations on Assessments
Generally, Section 6501(a) prohibits the IRS from auditing a tax return and assessing additional tax after three years from the filing date. Thus, the IRS has…