In the plethora of files across my desk over the years, navigating compliance issues for liquidating distributions of a partner's interest in a partnership have 3 buzzworthy considerations to avoid unwanted scrutiny. Calculating the recognized gain or loss from a cash or property distribution in...
Different Sources of Income Matter FDAP v. ECI One of the issues difficult for some of my international clients to grasp about the United States is its taxation of citizens and resident aliens alike on their worldwide income without any regard to where the income is...
InBobrow v. Comm'r, T.C. Memo. 2014-21, the Tax Court relied on IRC 408(d)(3)(B) regarding the limits and frequency of nontaxable rollover contributions elected by the taxpayer notingthat the one-year limitation addressed in this section of the US Tax Code applies to all IRAs maintained by...
According toIRC 357(a)if property transferred to a corporation in an IRC 351 nonrecognition transaction is subject to a liability, the assumption of that liability by the corporation generally is not treated as taxable "boot" for purposes of determining the amount of any taxable gain on...
Areverse mortgageis generally a loan where a lender pays a lump sum, a monthly advance, a line of credit, or a combination of all three to you while you continue to live in your home and retain title to it. Plans vary but for the...
Generally if payments are in exchange forpartnership property, the amountreceived in excess of the partner's outside basis in his/her partnership interest is taxed as capitalgain. Howeverif thepayments represent a distributiveshare of partnership income or aredeemed to be guaranteed payments,the payments are taxed as ordinaryincome. According to...
Closing down your business is hard and heart breaking and if you are at the point that you are actually reading this post then people have probably been nagging you for money and you are at the end of your rope. You worked hard to...
Liquidating payments made bya partnership to a retiring partnerare governed by §736. In general,if the payments are in exchange forpartnership property, the amountreceived in excess of the exitingpartner's outside basis in his partnership interest is taxed as capitalgain. On the other hand, if thepayments represent...