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Tax Section

Section 453 Trap for S Corporation Asset Sales

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John G. Hodnette

In my prior post, Installment Sale Notes Owned by S Corporations, I discussed sales of S corporation assets in exchange for a promissory note, invoking the…

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199A Deduction for Real Estate Rental Businesses

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John G. Hodnette

Section 199A, as discussed in my prior blog post Section 199A Pass-Through Deduction and the Magic Number, provides for a deduction generally equal to the…

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Basics of 338(h)(10) Elections

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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…

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Bargain-Sale Pitfalls and the “Eerie Veneer” of NCMA’s “Madonna and Child in a Landscape”

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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.…

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Substantiating Charitable Giving: Sibling Rivalry?

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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…

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Exclusions to the Net Investment Income Tax

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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,…

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Federal Income Tax Update

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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).…

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Installment Sale Notes Owned by S Corporations

John, a white man with dark brown hair, wears a pale blue shirt, lime green and blue tie, and black suit.
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…

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The Spirit of Giving: NCBA’s New U.S. Tax Court Calendar Call Program

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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…

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Unreimbursed Expenses of Employees and Partners

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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…

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