Federal income taxation : a law student's guide to the leading cases and concepts / by Marvin A. Chirelstein, Lawrence A. Zelenak.
2012
KF6369 .C43 2012 (Map It)
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Details
Author
Title
Federal income taxation : a law student's guide to the leading cases and concepts / by Marvin A. Chirelstein, Lawrence A. Zelenak.
Published
New York : Foundation Press ; [St Paul, Minn.] : Thomson Reuters, 2012.
Call Number
KF6369 .C43 2012
Edition
Twelfth edition.
ISBN
1599419378
9781599419374
9781599419374
Description
xi, 535 pages : illustrations ; 24 cm.
System Control No.
(OCoLC)757469621
Bibliography, etc. Note
Includes bibliographical references and index.
Record Appears in
Gift
Gift of the Author, Professor Marvin A. Chirelstein
Added Author
Gift
The Arthur W. Diamond Law Library
Gift of the Author, Professor Marvin A. Chirelstein
Table of Contents
Preface
v
Introduction: Terminology, Timing and Rates
1
(a).
Tax Terminology
1
(b).
Tax Rates
3
pt. A
INCOME
8
Section 1
Non-Cash Benefits: Meals-and-Lodgings; Imputed Rents
12
1.01.
General Comment
12
1.02.
Forced Saving and Forced Consumption---"Convenience of the Employer"
17
1.03.
Imputed Income
27
Section 2
Recovery of Capital Investment
29
2.01.
General Comment; Corporate Stock
29
2.02.
Annuities
35
2.03.
Life Insurance
39
2.04.
Damage Awards
44
(a).
Personal injury
44
(b).
Commercial damages
46
Section 3
Increase in Net Worth---Cancellation of Indebtedness
48
3.01.
General Comment
48
(a).
Effect of inflation
49
(b).
Discharge by third parties
51
(c).
When is a loan not a loan?
54
(d).
Mortgages
56
3.02.
Cancellation of Indebtedness
56
Section 4
Gifts and Bequests
63
4.01.
Gains and Losses---Realization by Whom?
64
(a).
Lifetime gifts
65
(b).
Bequests
68
4.02.
Divided Interests---Gifts in Trust
70
4.03.
Commercial Gifts
75
Section 5
The Realization Requirement---Macomber, Bruun, and the Divorce Cases
78
5.01.
General Comment
78
5.02.
Stock Dividends
81
5.03.
Leasehold Termination---Helvering v. Bruun
90
5.04.
Marital Property Settlements---Davis and Farid-Es-Sultaneh
96
5.05.
Cottage Savings and the Realization Threshold
99
5.06.
Deferral and Exemption: Individual Retirement Accounts
102
pt. B
Deductions
114
Section 6
Business Expenses
115
6.01.
Everyday Expenses of Employment
117
(a).
Childcare and housekeeping
117
(b).
Nice clothes
120
(c).
Commuting to work
123
(d).
Litigation expense
128
6.02.
Business or Pleasure---Travel and Entertainment
131
6.03.
Capital Expenditures
141
(a).
Repairs or alterations
142
(b).
Business intangibles and advertising
146
(c).
Lease or purchase
149
(d).
Education
151
6.04.
"Ordinary and Necessary"
153
6.05.
Reasonable Compensation
157
6.06.
Interest
165
(a).
"Tax arbitrage" and special disallowances
166
(b).
Sham transactions
169
6.07.
Losses
174
6.08.
Bad Debts
178
6.09.
Depreciation---General Background
180
(a).
Eligible property
181
(b).
Limitation to cost
182
(c).
Useful lives
183
(d).
Permissible methods
184
6.10.
ACRS and Leveraged Leases
190
(a).
ACRS
190
(b).
Leveraged leases and the transfer of tax benefits
194
6.11.
Purchased Intangibles; Code [§] 197
200
Section 7
Personal Expense Deductions
203
7.01.
General Comment
203
7.02.
Medical Expenses, Health Insurance, and Casualty Losses
209
(a).
Medical expense
209
(b).
Casualty losses
212
7.03.
Charitable Contributions
213
7.04.
Home Mortgage Interest
214
7.05.
Miscellaneous Deductions
220
7.06.
Standard Deduction; Adjusted Gross Income; Personal Exemptions
223
7.07.
The Child Tax Credit and Dependent Care Credit
225
(a).
Child Tax Credit
225
(b).
Dependent care credit
227
7.08.
EITC
227
7.09.
Education Incentives
229
7.10.
The Alternative Minimum Tax
233
pt. C
Attribution Of Income
244
Section 8
The Early Cases
246
8.01.
Gifts of Personal Service Income; Lucas v. Earl; Poe v. Seaborn
246
(a).
Redirected salary
246
(b).
Services in kind
251
8.02.
Assignment of Deferred Income: Helvering v. Eubank
253
8.03.
Gifts of Income From Property---Horst, Blair and Schaffner
257
(a).
The Horst case
257
(b).
Blair and Schaffner
261
8.04.
Gifts in Trust---Corliss, Wells and Clifford
263
8.05.
Summary of Attribution Principles
267
Section 9
Statutory Treatment of Income Attribution
270
9.01.
Grantor Trusts
270
(a).
Reversionary interests
272
(b).
Income for grantor's benefit
273
(c).
Revocability and powers to control enjoyment
273
(d).
Persons other than grantor treated as owner
275
9.02.
Unearned Income of Minors (and Some Young Adults)---the Kiddie Tax
276
9.03.
Family Business Associations
278
(a).
Partnerships
278
(b).
Corporations
282
9.04.
Joint Returns: Taxation of Married and Single Persons
285
9.05.
Alimony and Separate Maintenance
289
pt. D
Tax Accounting
297
Section 10
Annual Accounting
298
10.01.
Loss Carryovers---Burnet v. Sanford & Brooks
298
10.02.
Claim of Right
303
10.03.
The Tax Benefit Rule
308
Section 11
The Cash Method
311
11.01.
Constructive Receipt and Cash Equivalency
312
(a).
Constructive receipt
312
(b).
Deferred compensation
314
(c).
"Calling off" constructive receipt
318
11.02.
Prepaid Expenses
318
Section 12
The Accrual Method
321
12.01.
Recognition of Income and Expenses; Disputed Items
322
(a).
Timing of revenues and expenditures
322
(b).
Disputed items
325
12.02.
Advance Receipts and Reserves for Estimated Expenses
328
12.03.
Use of Inventories
332
(a).
The "First-in, First-out" (FIFO) method
334
(b).
The "Last-in, First-out" (LIFO) method
335
(c).
Comparison of principal methods
335
pt. E
Recognition Of Gains And Losses---Selected Issues
342
Section 13
Transactions in Mortgaged Property
343
13.01.
Nonrecourse Debt and the Depreciation Allowance; The Crane Rule
344
13.02.
Real Estate Tax Shelters: The "At-Risk" and "Passive Activity Loss" Limitations
352
(a).
At-risk
353
(b).
Passive activity losses
355
13.03.
Mortgage of Appreciated Property---The Woodsam Case
358
13.04.
Dispositions of Encumbered Assets---Tufts and Died-rich
362
(a).
Excessively mortgaged property
362
(b).
Conditional gifts
366
13.05.
Estate of Levine: An Exercise
368
13.06.
Short Sales and Related Devices
372
Section 14
Deferred Payment Transactions
376
14.01.
In General
376
14.02.
The Installment Method
377
14.03.
The "Fair Market Value" Rule
379
Section 15
Non-Recognition Transactions
382
15.01.
Like-Kind Exchanges
384
15.02.
Sale of a Personal Residence
391
pt. F
Capital Gains And Losses
400
Section 16
Introduction
400
16.01.
Recent History; Repeal and Reinstatement
400
16.02.
Legislative Purpose
402
16.03.
Mechanics of Computation
408
Section 17
Judicial Development of the Capital Asset Definition
412
17.01.
General Comment
412
17.02.
Everyday Business Activities
413
17.03.
Substitute for Future Income
420
(a).
Carved-out interests; Hort and Lake
420
(b).
Sale of a life estate
425
(c).
Other contract rights
429
17.04.
Fragmentation and Imputed Interest
436
(a).
Sale of an entire business
437
(b).
Bond discount and imputed interest
439
17.05.
Recurring Receipts
443
(a).
Contingent payments
444
(b).
Open transactions
447
Section 18
Sales of Business Property
450
18.01.
Property Held for Sale to Customers
451
18.02.
Fixed Assets: Real and Depreciable Property
456
(a).
Section 1231
456
(b).
The recapture principle
457
Section 19
Personal Services
459
19.01.
Employee Stock Options
460
19.02.
Patents, Copyrights, and Self-Created Property
464
Afterword
473
Note: What Is the True Value of a Tax Preference?
478
Note: Income Tax, Consumption Tax, Flat Tax
486
Note: Tax Shelters and Economic Substance
492
Appendix: Present Value
504
Table of Cases
511
Index
517