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Tax Law Roundup current law developments in U.S. taxation

Tag Archives: IRS

New Basis Reporting Requirements for Executors and Beneficiaries

Posted in Estate and Gift, Tax, trusts and estates

Recent federal legislation adds fresh compliance burdens to an old concept in federal tax law: the step-up in tax basis of appreciated property at death.  New reporting requirements will apply to estates required to file a federal estate tax return after July 31, 2015 and are effective beginning June 30, 2016. Executors and beneficiaries who do… Continue Reading

IRS Addresses Interaction of Performance Compensation and $1M Compensation Deduction Cap

Posted in Compensation, Tax

The IRS recently issued final regulations under Section 162(m), which limits a public company’s deduction of executive compensation in excess of $1M.  The Section 162(m) limits do not apply to performance-based compensation that meets certain qualifications.  These final regulations released on March 30 solve two important riddles for practitioners: Per-Employee Limitations – To avoid the… Continue Reading

IRS-Treasury 2011-2012 Business Plan Released

Posted in Corporate, Corporations: International, Estate and Gift, General, Partnership/LLC

The IRS released its annual Priority Guidance Plan on September 2, containing 317 projects that are priorities for the twelve-month period from July 2011 through June 2012.  Although the total number of items on the list is similar to the prior year, some categories contain a more robust list of projects.  For example, partnership tax… Continue Reading

Timber Forest Carbon Emission Units are Good REIT Assets

Posted in Green, Real Estate, REITs

The IRS has ruled in PLR 201123003 that a timber REIT can treat its tradable carbon emission units as an interest in real property that is a good REIT asset which creates good real estate income. The applicable forestry program granting the units imposes land use restrictions on the forest owner by requiring the forest… Continue Reading

Final “Killer B” Regulations – Triangular Reorganizations With Foreign Corporations

Posted in Corporations: International

The IRS finalized the 2008 proposed and temporary “Killer B” regulations involving triangular reorganizations with foreign subsidiary corporations. The regulations address what may be viewed as repatriation transactions that are in the form of a reorganization. Generally speaking, the regulations treat the acquisition of Parent stock by the foreign subsidiary as a dividend occurring immediately… Continue Reading

IRS Guidance on 100% Bonus Depreciation

Posted in General

The IRS issued detailed guidance on the application of recent statutory changes that temporarily allowed a 100-percent additional first year depreciation deduction for certain new property and extended the placed-in-service date for property to qualify for the 50-percent first-year bonus depreciation. The guidance clarifies when property must be acquired to qualify for 100% bonus depreciation,… Continue Reading

FAQs on Cost-Basis Reporting for Brokers

Posted in Securities

The IRS published a list of Frequently Asked Questions on the new expanded tax reporting requirements for brokers which include reporting their customer’s tax basis and holding period information. The guidance explains the types of securities covered, how to report tax basis if less than all securities are sold, when returns are due, who qualifies… Continue Reading

IRS Provides Capitalization Percentage Election for Acquisition “Success Fee”

Posted in General

In Rev. Proc. 2011-29 the IRS allowed taxpayers make a safe harbor election to elect to treat 70% of certain success-based acquisition fees as an amount that “does not facilitate the transaction”  with the remaining 30% to be capitalized as an amount that facilitates the transaction.  The guidance is limited to specified “covered transactions” and… Continue Reading

Court Respects Historic Rehab Credit Syndication

Posted in Tax Credits

Taxpayers won a significant victory in the Tax Court, overcoming an IRS position that an investor in a historic rehabilitation tax credit partnership should not be respected as a partner for tax purposes. The IRS argued that the transaction lacked economic substance, was a sham, and that the investor was merely purchasing tax credits and… Continue Reading