Understanding federal income taxation / J. Martin Burke, Professor of Law Emeritus, University of Montana School of Law ; Michael K. Friel, Professor of Law and Director, Graduate Tax Program, University of Florida Levin College of Law.
2016
KF6369.85 .B87 2016 (Map It)
Available at Cellar
Formats
| Format | |
|---|---|
| BibTeX | |
| MARCXML | |
| TextMARC | |
| MARC | |
| DublinCore | |
| EndNote | |
| NLM | |
| RefWorks | |
| RIS |
Items
Details
Author
Title
Understanding federal income taxation / J. Martin Burke, Professor of Law Emeritus, University of Montana School of Law ; Michael K. Friel, Professor of Law and Director, Graduate Tax Program, University of Florida Levin College of Law.
Published
Durham, North Carolina : Carolina Academic Press, [2016]
Call Number
KF6369.85 .B87 2016
Edition
Fifth edition.
ISBN
9781522103486 (pbk.)
1522103481 (pbk.)
1522103481 (pbk.)
Description
xxiv, 753, 6, 12, 1, 16 pages ; 26 cm.
System Control No.
(OCoLC)945170065
Summary
"[This book] consists of forty-four chapters with each chapter addressing a basic topic in individual income taxation, e.g., the taxation of personal injury awards, the interest deduction, installment sales. Because the provisions of the Internal Revenue Code are necessarily at the heart of tax study, a part or all of the Code section(s) pertinent to the specific topic are included in each chapter. Likewise, the chapters contain summaries of leading cases and relevant administrative rulings as well as numerous examples explaining the application of the law...[This edition] incorporates recent developments in the Internal Revenue Code and addresses important recent income tax cases as well as revised regulations and other new administrative materials."-- Provided by publisher.
Bibliography, etc. Note
Includes bibliographical references and index.
Available in Other Form
Online version: Burke, J. Martin. Understanding federal income taxation. Fifth edition. Durham, North Carolina : Carolina Academic Press, 2016 9781522103493 (DLC) 2016013545
Record Appears in
Gift
Purchased from the income of the Edith L. Fisch Fund
Added Author
Gift
The Arthur W. Diamond Law Library
Purchased from the income of the Edith L. Fisch Fund
Table of Contents
ch. 1
Introduction To Federal Income Tax
1
1.01.
Brief History Of Federal Income Tax
1
1.02.
Resolution Of Tax Issues Through The Judicial Process
2
A.
Trial Courts
2
1.
Tax Court
3
2.
Federal District Courts
3
3.
United States Court Of Federal Claims
3
B.
Appellate Courts
4
C.
Selection Of Forum
4
1.03.
Computation Of Tax Liability
5
A.
Basic Questions Addressed By An Income Tax System
5
B.
Evaluating Tax Liability
5
1.
Gross Income
6
2.
Concept Of Adjusted Gross Income
7
3.
Deductions
9
4.
Calculating Adjusted Gross Income
11
5.
Taxable Income
12
a.
Itemize Or Elect Standard Deduction
12
b.
Section 67: The 2% Floor On Miscellaneous Itemized Deductions
12
c.
Section 68 Overall Limitation On Itemized Deductions
13
d.
Personal Exemptions
14
e.
Calculating Taxable Income
15
6.
Tax Rates
15
7.
Credits
15
1.04.
Conclusion
16
ch. 2
Gross Income Concepts And Limitations
17
2.01.
Search For A Definition Of Income
17
2.02.
Income Realized In Any Form
20
2.03.
Realization, Imputed Income And Bargain Purchases
21
A.
Realization Requirement
22
B.
Imputed Income
24
C.
Bargain Purchases
27
ch. 3
Effect Of An Obligation To Repay
29
3.01.
Loans
29
3.02.
Claim Of Right
31
3.03.
Illegal Income
33
3.04.
Deposits
35
ch. 4
Gains Derived From Dealings In Property
39
4.01.
Computing Gain Derived From Dealings In Property
39
4.02.
Tax Cost Basis
42
4.03.
Impact Of Liabilities
43
A.
Impact On Basis
43
B.
Impact On Amount Realized
45
4.04.
Basis Of Property Acquired In Taxable Exchanges
46
ch. 5
Gifts, Bequests And Inheritance
51
5.01.
Exclusion Of Gifts From Income
51
A.
Nature Of A Gift
52
1.
Employer-Employee "Gifts"
53
2.
Business Gifts
54
B.
Nature Of A Bequest Or Inheritance
54
C.
Statutory Limitations On The Exclusion - Section 102(b)
55
5.02.
Basis Of Property Received By Gift, Bequest Or Inheritance
57
A.
Gifts Of Appreciated Property
57
B.
Gifts Of Property - Basis In Excess Of Fair Market Value
59
C.
Basis Of Property Received By Bequest Or Inheritance
61
5.03.
Part-Gift, Part-Sale
64
ch. 6
Sale Of A Principal Residence
67
6.01.
Ownership And Use Requirements
67
6.02.
Amount Excludable
73
6.03.
Exclusion For Taxpayers Failing To Meet Certain Requirements
75
6.04.
Limitation On Exclusion For Depreciation Claimed
78
6.05.
Principal Residence
79
6.06.
Conclusion
81
ch. 7
Scholarships And Prizes
83
7.01.
Prizes And Awards
83
A.
Prizes And Awards Generally Taxable
84
B.
Employee Achievement Awards Exempt
84
7.02.
Qualified Scholarships
87
A.
Limitation Of Exclusion
87
B.
Scholarships As Compensation
88
C.
Tuition Reduction
89
D.
Educational Assistance Programs
90
E.
Gifts
91
ch. 8
Life Insurance, Annuities, And Individual Retirement Accounts
93
8.01.
Life Insurance
93
A.
Exclusion Of Mortality Gains
93
B.
Death Of The Insured
96
C.
Accelerated Death Benefit
96
D.
Surrender For Value
97
E.
Interest Income
98
F.
Transfer For Value
99
G.
Group-Term Life Insurance
100
8.02.
Annuities
101
8.03.
Individual Retirement Accounts
104
A.
Deductible IRAs
105
B.
Nondeductible IRAs
106
C.
Roth IRAs
106
ch. 9
Discharge Of Indebtedness
109
9.01.
Historical Background
109
9.02.
Specific Rules Governing Exclusion
111
A.
Discharge Of Indebtedness When Taxpayer Is Insolvent
111
1.
Case Law Pre-1980 Bankruptcy Tax Act
111
2.
Insolvency Exclusion Under Section 108
112
B.
Discharge Of Qualified Real Property Business Indebtedness
115
C.
Discharge Of Indebtedness On Principal Residence Before January 2017
116
D.
Purchase-Money Debt Reduction For Solvent Debtors
117
E.
Acquisition Of Indebtedness By Person Related To Debtor
119
F.
Discharge Of Deductible Debt
119
G.
Discharge Of Certain Student Loans
120
9.03.
Disputed Or Contested Debts
121
9.04.
Discharge Of Indebtedness As Gift, Compensation, Etc.
123
9.05.
Inapplicability Of Section 108 To Gain Realized On Transactions Involving Discharge Of Indebtedness
124
ch. 10
Compensation For Personal Physical Injury And Physical Sickness
125
10.01.
Introduction
125
10.02.
Damages
126
A.
Business Or Property Damages
126
B.
Exclusion For Damages Received On Account Of Personal Physical Injuries Or Physical Sickness
127
C.
Supreme Court Limitations On Section 104(a)(2)
130
1.
What Is A "Personal Injury"?
130
2.
When Are Damages Received "On Account Of' A Personal Injury?
130
D.
Restricting The Exclusion To Physical Injury Or Physical Sickness
132
1.
Distinction Between Physical And Non-Physical Injuries
132
2.
Personal Physical Injury Or Physical Sickness
134
3.
Emotional Distress
135
4.
Recoveries By Individuals Other Than Individuals Suffering Personal Physical Injury Or Physical Sickness
137
E.
Current Regulations And The Definition Of "Damages"
138
F.
Punitive Damages
139
G.
Allocation Of Awards
140
H.
Periodic Payments
141
10.03.
Payment Under Accident And Health Insurance Policies
142
10.04.
Previously Deducted Medical Expenses
145
10.05.
Workers' Compensation
146
10.06.
Certain Disability Pensions
146
ch. 11
Fringe Benefits
147
11.01.
Meals And Lodging
147
A.
Treatment Of Meals And Lodging Prior To 1954
147
B.
Section 119 - Meals Or Lodging Furnished For The Convenience Of The Employer
148
11.02.
Fringe Benefits And Section 132
151
A.
No-Additional-Cost Service
151
B.
Qualified Employee Discount
155
C.
Working Condition Fringe
158
D.
De Minimis Fringe Benefits
159
E.
Qualified Transportation Fringe
160
F.
On-Premises Gyms And Other Athletic Facilities
161
11.03.
Valuation
162
ch. 12
Business And Profit Seeking Expenses
163
12.01.
Business Deductions - Section 162
163
A.
Expense Must Be "Ordinary And Necessary"
164
1.
Is The Expense "Ordinary"?
164
2.
Is The Expense "Necessary"?
168
3.
"Reasonable" Salaries
170
4.
Clothing Expenses
174
5.
Public Policy Considerations
175
6.
Lobbying Expenses
176
B.
"Carrying On A Trade Or Business"
177
1.
What Constitutes A "Trade Or Business"?
177
2.
"Carrying On" Requirement
178
3.
Section 195 And The Amortization Of Certain Pre-Operational Or Start-Up Costs
180
4.
Application Of The "Carrying On" Requirement To Employees
182
12.02.
Section 212 Deductions
185
ch. 13
Capital Expenditures
187
13.01.
Deductible Expense Or Capital Expenditure?
187
13.02.
Defining Capital Expenditures - INDOPCO
188
13.03.
Administrative Guidance: The Capital Expenditures Regulations
191
A.
Amounts Paid To Acquire Or Produce Tangible Property
192
B.
Amounts Paid To Improve Tangible Property
194
1.
Improvements: Historic Rules
194
2.
Improvements
198
3.
Amounts Paid To Acquire Or Create Intangibles
203
4.
Amounts Paid With Regard To The Sale, Removal, Or Retirement Of An Asset
205
13.04.
Miscellaneous Items
206
A.
Expansion Costs
206
B.
Business Downsizing Costs
207
C.
Employee Training Costs
208
D.
Advertising Expenses
208
13.05.
Purchase Or Lease
209
ch. 14
Depreciation
211
14.01.
Depreciation
211
A.
Depreciable Property
211
B.
Recovery Period - The Useful Life Concept
214
1.
Historical Development
214
2.
Current Recovery Periods - Modified Accelerated Cost Recovery System (MACRS)
215
C.
Depreciation Methods
217
D.
Conventions
219
14.02.
Computing The Depreciation Deduction
221
14.03.
Additional First Year Depreciation
224
14.04.
Amortization Of Intangibles - Section 197
225
14.05.
Relationship Between Basis And Depreciation
225
14.06.
Section 179 - Expensing Tangible Personal Property
226
14.07.
Relationship Of Debt To Depreciation
229
Excerpt From Revenue Procedure 87-56
230
Excerpt From Revenue Procedure 87-57
232
ch. 15
Losses And Bad Debts
235
15.01.
Losses
235
A.
Business Or Profit Requirement For Individuals
236
1.
Personal Losses Not Deductible
236
2.
Conversion Of Personal Use Property To Income Producing Property
238
B.
When Is A Loss Sustained?
239
1.
Worthless Securities
240
2.
Theft Losses
241
C.
Amount Of The Deduction
241
1.
Reimbursement
242
2.
Post-Conversion Losses
242
D.
Disallowed Losses
243
15.02.
Bad Debts
243
A.
Bona Fide Debt Requirement
244
B.
Worthlessness
244
C.
Business Or Nonbusiness Debts
244
D.
Amount Deductible
247
E.
Guarantees
248
15.03.
Bad Debts And Losses: The Interplay Between Sections 166 And 165
248
ch. 16
Travel Expenses
249
16.01.
Commuting
249
16.02.
Other Transportation Expenses
253
16.03.
Expenses For Meals And Lodging While In Travel Status
254
16.04.
Where Is The Taxpayer's "Home" For Section 162(a)(2) Purposes?
256
16.05.
Other Considerations
260
A.
Travel Expenses Of Spouse
260
B.
Reimbursed Employee Expenses
261
C.
Business-Related Meals
262
D.
Limitations On Foreign Travel
263
E.
Relationship To Section 212
263
F.
Substantiation Requirements
264
ch. 17
Entertainment And Business Meals
265
17.01.
Business Or Pleasure?
266
A.
Historical Background
266
B.
Percentage Cutback For Meal And Entertainment Expenses
267
C.
Business Meals And Entertainment Ticket Limitations
269
17.02.
Entertainment Activities
270
A.
"Directly Related" Entertainment
270
B.
"Associated With" Entertainment
271
17.03.
Entertainment Facilities
272
17.04.
Substantiation Requirements
274
17.05.
Exceptions
275
17.06.
Business Meals
276
ch. 18
Educational Expenses
281
18.01.
Categorization Of Educational Expenses
281
18.02.
Skill-Maintenance Or Employer-Requirement Tests
282
18.03.
Minimum Educational Requirements And New Trade Or Business Tests
284
18.04.
Travel Expenses
288
18.05.
Education Tax Incentives
289
A.
Education Credits
289
B.
Education Deductions
291
C.
Education Exclusions From Income
291
ch. 19
Other Deductible Personal Expenses
295
19.01.
Moving Expenses
295
19.02.
Child Care Expenses
300
19.03.
Legal Expenses
302
ch. 20
Hobby Losses
305
20.01.
Historical Development
305
20.02.
Section 183 Activities
306
20.03.
Deductions Allowable Under Section 183
311
ch. 21
Home Offices, Vacation Homes And Other Dual Use Property
313
21.01.
Home Office Deductions
313
A.
General Background - Bodzin v. Commissioner
315
B.
Enactment Of Section 280a
317
C.
Principal Place Of Business
318
D.
Convenience Of Employer
319
E.
Limitation On Amount Of Deduction
320
21.02.
Vacation Home Deductions
322
21.03.
Other Dual Use Property
326
A.
Computers And Other "Listed Property"
326
B.
Passenger Automobiles
329
21.04.
Conclusion
331
ch. 22
Interest Deduction
333
22.01.
What Constitutes Interest?
333
22.02.
Deduction Of Personal Interest
334
A.
Qualified Residence Interest
337
B.
Interest On Education Loans
341
22.03.
Investment Interest
342
22.04.
Timing Issues And Limitations
345
A.
Allocation Of Prepaid Interest
345
B.
Capitalization Of Interest
347
C.
Payment Issues
347
ch. 23
Deduction For Taxes
351
23.01.
Historical Background
351
23.02.
Taxes Deductible Under Section 164
351
23.03.
Party Eligible To Claim The Deduction
353
23.04.
Special Problems Associated With The Deduction Of Real Property Taxes And Assessments
354
A.
Real Property Assessments
354
B.
Apportionment Of Real Property Taxes Between Buyer And Seller
355
23.05.
Public Policy Considerations
358
ch. 24
Casualty Losses
361
24.01.
Definitional Questions
362
A.
Casualty Losses
362
B.
Theft Losses
366
24.02.
Timing Of The Loss
367
24.03.
Amount Of The Loss
367
24.04.
Insurance Coverage
370
ch. 25
Medical Expenses
371
25.01.
Deductibility Of Medical Expenses
372
A.
Medicine And Drugs
372
B.
Counseling Costs
373
C.
Capital Expenditures
374
D.
Meals And Lodging
376
E.
Illegal Operations Or Treatment
376
F.
Qualified Long-Term Care
377
G.
Transportation Expenses
377
25.02.
Medical vs. Personal Expenses
378
ch. 26
Charitable Deductions
381
26.01.
In General
381
26.02.
Requirements For Charitable Deductions
381
A.
Who Is A Qualified Recipient?
382
B.
What Is A "Contribution" Or "Gift"?
385
C.
Actual Payment Required
389
D.
Limitation On Charitable Deductions
389
26.03.
Contribution Of Services
392
26.04.
Contribution Of Appreciated Property
392
26.05.
Contributions Of Partial Interests In Property
396
26.06.
Bargain Sale To Charity
399
26.07.
Substantiation
400
ch. 27
Limitations On Deductions
403
27.01.
Section 267: Losses Between Related Parties
403
A.
Section 267(a)(1) Loss Rule
403
B.
Section 267(a)(2) Matching Requirement
407
C.
Other Matching Rules - Section 404(a)(5) And Section 83
408
27.02.
Section 265: Expenses Related To Tax-Exempt Income
410
A.
Section 265(a)(1) General Rule
410
B.
Section 265(a)(2): Tax-Exempt Interest
412
C.
Allocation
414
27.03.
Section 1091: Wash Sales
414
27.04.
Judicial Limitations On Interest Deductions
416
ch. 28
Cash Method Accounting
421
28.01.
Income Under The Cash Method
421
A.
In General
421
B.
Constructive Receipt
422
1.
Specific Factors Affecting Application Of Constructive Receipt Doctrine
423
a.
Distance
423
b.
Knowledge
425
c.
Contractual Arrangements
425
d.
Forfeitures Or Other Penalties
425
e.
Relationship Of The Taxpayer To The Payor
426
2.
Specific Exceptions To Constructive Receipt Rules
427
C.
Cash Equivalency Doctrine
428
D.
Economic Benefit Doctrine
431
E.
Non-Qualified Deferred Compensation Arrangements
434
F.
Section 409a And Revenue Ruling 60-31
436
G.
Lottery Prizes
437
H.
Prepayments
438
28.02.
Deductions Under The Cash Method
438
A.
In General
438
B.
Cash Method Prepayments
441
ch. 29
Accrual Method Accounting
445
29.01.
All Events Test
445
29.02.
Accrual Of Income
446
A.
General Rules
446
B.
Income Prior To Receipt: Accrual Issues
447
C.
Receipt Prior To Earning: Prepayments
450
29.03.
Deductions Under The Accrual Method
454
A.
General Rules
454
B.
Premature Accruals
456
C.
Economic Performance Test: Section 461(h)
457
D.
Recurring Item Exception And The 3[½] Month Exception To The Economic Performance Test
460
E.
Safe Harbor Method Of Accounting For Ratable Service Contracts
462
F.
Capitalization
464
G.
Contested Liabilities
464
29.04.
Choice Of Accounting Methods
466
ch. 30
Annual Accounting
469
30.01.
Restoring Amounts Received Under A Claim Of Right
469
A.
Appearance Of A Right
472
B.
No Unrestricted Right
473
30.02.
Tax Benefit Rule
474
A.
"Fundamental Inconsistency" Test
477
B.
Erroneous Original Deduction
478
30.03.
Net Operating Losses
479
ch. 31
Capital Gains And Losses
483
31.01.
Historical Overview
483
A.
Preferential Treatment For Long-Term Capital Gain
484
B.
Limitation On The Deduction Of Capital Losses
487
C.
Justification For Preferential Capital Gain Treatment
488
31.02.
Current Law: Section 1(h)
489
A.
Maximum Rates On Long-Term Capital Gain Under The Current Law
489
B.
Components Of Net Capital Gain: 28-Percent Rate Gain; Unrecaptured Section 1250 Gain; And Adjusted Net Capital Gain
491
1.
28-Percent Rate Gain: Collectibles Gain And Section 1202 Gain
492
2.
Unrecaptured Section 1250 Gain - 25% Rate
493
3.
Adjusted Net Capital Gain: 20%, 15% And 0% Rates
493
4.
Adjusted Net Capital Gain: Qualified Dividend Income
495
C.
Attribution Of Capital Losses Included In The Computation Of Net Capital Gain
497
31.03.
Section 1211(b) Limitation On The Deduction Of Capital Losses
499
31.04.
Definition Of Capital Asset
503
A.
Section 1221(a)(1): Inventory, Stock In Trade And Property Held Primarily For Sale To Customers In The Ordinary Course Of The Taxpayer's Trade Or Business
505
B.
Section 1221(a)(2): Property Used In The Taxpayer's Trade Or Business
507
C.
Section 1221(a)(3): Copyrights, Literary, Musical, Or Artistic Compositions, Etc.
507
D.
Section 1221(a)(4): Accounts Receivable For Services Rendered Or Inventory-Type Assets Sold
508
E.
Section 1221(a)(5): Certain Publications Of The U.S. Government
508
F.
Section 1221(a)(8): Supplies Used Or Consumed In The Taxpayer's Trade Or Business
509
G.
Judicially Established Limits On Capital Asset Definition
509
31.05.
Sale Or Exchange Requirement
513
31.06.
Arrowsmith Rule: Characterization Of Certain Gains Or Losses Dependent On Prior Tax Treatment Of Related Gains Or Losses
515
31.07.
Holding Period
516
ch. 32
Quasi-Capital Assets: Section 1231
519
32.01.
Identifying Section 1231 Gains And Losses
519
32.02.
Hotchpot Analysis
523
32.03.
Recapture Of Net Ordinary Losses: Section 1231(c)
526
ch. 33
Depreciation Recapture
529
33.01.
Section 1245 Recapture
530
33.02.
Section 179 Recapture
534
33.03.
Section 1250 Recapture
535
33.04.
Unrecaptured Section 1250 Gain
537
33.05.
Section 1239 Ordinary Income
539
33.06.
Other Recapture Provisions
541
ch. 34
Assignment Of Income
543
34.01.
Progressive Rate Structure
543
34.02.
Development Of Rules Limiting Income-Shifting
544
34.03.
Community Property
546
34.04.
Application Of The Assignment Of Income Rules
547
34.05.
Kiddie Tax
551
ch. 35
Below-Market Loans
559
35.01.
History: Pre-Section 7872
559
A.
Early IRS Attempts At Taxation
559
B.
Gift Tax Consequences Of Interest-Free Loans
561
C.
Post Dean/Johnson History
561
35.02.
Rationale For Section 7872
563
35.03.
Operation Of Section 7872
564
A.
Treatment Of Term Loans Other Than Term Gift Loans
566
B.
Demand Loans And Term Gift Loans
568
C.
Exceptions To The Basic Operating Rules
570
ch. 36
Tax Consequences Of Divorce
573
36.01.
Alimony: General Requirements
573
36.02.
Child Support
578
36.03.
Excess Front-Loading
581
36.04.
Alimony Trusts
586
36.05.
Dependency Exemption
586
36.06.
Filing Status
591
36.07.
Property Transfers
592
36.08.
Special Rules Regarding Personal Residence - Section 121
597
36.09.
Legal Expenses
599
ch. 37
Effect Of Debt On Basis And Amount Realized
601
37.01.
Crane v. Commissioner
601
37.02.
Commissioner v. Tufts
602
37.03.
Nonrecourse Borrowing And The Section 108 Insolvency Exclusion
606
37.04.
Nonrecourse Borrowing And Appreciated Property
608
37.05.
Impact Of Contingent Liabilities
610
ch. 38
Like-Kind Exchanges
613
38.01.
Continuity Of Interest
614
38.02.
Like-Kind Requirement
615
38.03.
Holding Requirements
618
38.04.
"Solely" For Like Kind Property: The Presence Of "Boot"
622
38.05.
Treatment Of Liabilities
623
38.06.
Basis Calculations
624
38.07.
Relationship Between 267(a)(1) And 1031
630
38.08.
Sale Or Exchange?
630
38.09.
Three-Way Exchanges And Deferred Exchanges
632
38.10.
Reverse Starker Exchanges
635
38.11.
Exchanges Qualifying For Both 121 And 1031
636
38.12.
Section 121(D)(10) - Property Acquired In A Like-Kind Exchange
638
ch. 39
Involuntary Conversions
641
39.01.
General Policy
641
39.02.
Mandatory And Elective Rules Of Section 1033
642
39.03.
Involuntary Conversion Events
643
39.04.
Similar Or Related In Service Or Use
644
A.
Special Rule For Condemnation Of Real Property Used For Business Or Investment
647
B.
Federally Declared Disasters
650
39.05.
Time For Replacement
653
39.06.
Partial Recognition Of Gain Under Section 1033
654
39.07.
Basis Of Replacement Property
654
39.08.
Holding Period Of Replacement Property
656
39.09.
Involuntary Conversion Of Principal Residence
656
ch. 40
Installment Sales
659
40.01.
Statutory Framework
659
40.02.
Payments And Liabilities
661
40.03.
Recapture Income
664
40.04.
Electing Out Of The Installment Method
665
40.05.
Exclusions
665
40.06.
Contingent Payment Sales
666
40.07.
Dispositions Of Installment Obligations
668
40.08.
Second Dispositions By Related Persons
670
40.09.
Sales Of Depreciable Property To Related Persons
674
40.10.
Special Rules For Nondealers
674
40.11.
Installment Obligations And Like-Kind Exchanges
676
ch. 41
Sale Of A Business And Sale-Leasebacks
679
41.01.
Sale Of A Sole Proprietorship
679
A.
Standard Of Williams v. McGowan
679
B.
Goodwill, Going Concern Value And Covenants Not To Compete
680
1.
Goodwill
680
2.
Going Concern Value
681
3.
Covenant Not To Compete
681
C.
Tax Consequences Of Allocation Of Purchase Price
682
1.
Historic Allocation Strategies
682
2.
Section 197 - Amortization Of Business Intangibles
683
41.02.
Valuing Goodwill, Going Concern Value, And Covenants Not To Compete
687
41.03.
Sale-Leaseback
692
A.
Sale-Leaseback Characterized As Financing Arrangement
693
B.
Sale-Leaseback Characterized As A Tax-Free Exchange
694
ch. 42
Introduction To Original Issue Discount
697
42.01.
Original Issue Discount: Introduction
697
42.02.
OID: Debt Instruments Issued For Cash
700
A.
Determining The Amount Of OID
703
B.
Current Inclusion Of OID
704
C.
Deduction Of OID
706
D.
Gain Or Loss On Sale, Exchange Or Retirement
706
E.
Market Discount
708
42.03.
Sales And Exchanges Of Property And Section 467 Rental Agreements
708
ch. 43
Limitations On Tax Shelters
711
43.01.
At Risk Rules - Section 465
711
A.
General Background
711
B.
Operation Of The At Risk Rules
712
1.
Activities Subject To The At Risk Rules
714
2.
Determination Of The Initial Amount At Risk
714
3.
Qualified Nonrecourse Financing
715
4.
Adjustments To The Amount At Risk
715
43.02.
Section 469 - Limitation On Passive Activity Losses And Credits
718
A.
Background
718
B.
Section 469 - In General
720
C.
Passive Activities
721
1.
Material Participation
722
2.
Rental Activities
723
D.
Scope Of Passive Activities
724
E.
Treatment Of Losses And Credits
725
F.
Portfolio Income And Expenses
726
G.
Exception For Active Participation In Rental Real Estate
727
H.
Disposition Of Taxpayer's Entire Interest In Passive Activity
728
ch. 44
Alternative Minimum Tax
731
44.01.
Mechanics
731
44.02.
Determining Alternative Minimum Taxable Income
735
A.
Section 56 And 58 Adjustments
737
1.
Depreciation
737
2.
Limitation On Itemized Deductions, Standard Deductions And Personal Exemptions
737
B.
Section 57 Preferences
739
44.03.
Determining Tax Liability
740
44.04.
Credits Allowed
741
Appendix A Note On Miscellaneous Exclusions
743
Appendix B Additional Accounting Considerations
749
Table Of Cases
TC-1
Table Of Statutes
TS-1
Table Of Agency Decisions
TA-1
Index
I-1