Corporate taxation / George K. Yin, Karen C. Burke.
2011
KF6450 .Y562 2011 (Map It)
Available at Cellar
Formats
| Format | |
|---|---|
| BibTeX | |
| MARCXML | |
| TextMARC | |
| MARC | |
| DublinCore | |
| EndNote | |
| NLM | |
| RefWorks | |
| RIS |
Items
Details
Author
Title
Corporate taxation / George K. Yin, Karen C. Burke.
Published
New York : Wolters Kluwer Law & Business, [2011]
Copyright
©2011
Call Number
KF6450 .Y562 2011
ISBN
9780735526303
0735526303
9780735526310 (pbk. ; teacher's manual
0735526311 (pbk. ; teacher's manual
0735526303
9780735526310 (pbk. ; teacher's manual
0735526311 (pbk. ; teacher's manual
Description
xxv, 562 pages ; 26 cm .
System Control No.
(OCoLC)750401478
Note
Includes index.
Series
Record Appears in
Gift
Gift of Professor Marvin A. Chirelstein
Added Author
Gift
The Arthur W. Diamond Law Library
Gift of Professor Marvin A. Chirelstein
Table of Contents
Preface
xxi
Acknowledgments
xxv
ch. 1
Introduction to Corporate Tax
1
ch. 2
Taxation of S Corporations
5
A.
Passthrough System under Subchapter S
5
1.
Tax Responsibilities of the S Corporation
5
2.
Shareholder Inclusion of Tax Items
6
Problem 2-1
7
3.
Shareholder Basis Adjustments
8
Problem 2-2
9
4.
Limitation on the Passthrough of Losses
9
Uri v. Commissioner
10
Problem 2-3
14
Gitlitz v. Commissioner
15
5.
Absence of Inside Basis Adjustments
22
Notice 2002-65
22
6.
Distributions by S Corporations Without E&P
24
Problem 2-4
27
B.
Eligibility and Election
27
1.
Eligibility for S Status
27
a.
Limited Number of Shareholders
28
b.
Only Individuals and Certain Entities May Be Shareholders
28
Rev. Rul. 92-64
29
c.
No More Than One Class of Stock
33
Paige v. United States
33
Problem 2-5
38
2.
Election and Termination of S Status
38
Problem 2-6
38
Problem 2-7
40
C.
Some Data on S Corporations and Other Business Entities
40
ch. 3
Taxation of C Corporations
47
A.
Classification Issues
48
1.
Incorporated Entities
48
Commissioner v. Jesse C. Bollinger
48
2.
Unincorporated Entities
52
B.
Taxation of C Corporation Income and Loss
56
1.
Brief Overview of Taxation of C Corporations
56
Treasury Department Excerpt
56
2.
Brief Overview of Taxation of Investors in C Corporations
65
3.
Avoiding or Mitigating the Effect of the "Double Tax"
69
a.
Compensation
69
Menard, Inc. v. Commissioner
69
b.
Capital Structure
78
Problem 3-1
81
Notice 97-21
83
Notice 94-48
84
c.
New Financial Products
85
Alvin C. Warren, Jr., U.S. Income Taxation of New Financial Products
86
Problem 3-2
90
d.
Earnings Accumulation
91
C.
Reforming the Taxation of C Corporations
97
1.
Corporate Integration
98
Joint Committee on Taxation Excerpt
98
2.
Providing Greater Conformity Between Book and Taxable Income
102
Joint Committee on Taxation Excerpt
102
3.
Broadening the Corporate Income Tax Base
110
Treasury Department Excerpt
111
ch. 4
Substance vs. Form
117
A.
Judicial Principles
117
Gregory v. Helvering
120
United Parcel Service of America, Inc. v. Commissioner
125
B.
Other Government Responses to Tax Avoidance
134
1.
Introduction
134
Notice 2004-30
134
2.
Disclosure and Related Requirements to Curb Tax Avoidance
136
C.
Codification of Economic Substance Doctrine
141
Joint Committee on Taxation Excerpt
141
ch. 5
Ordinary Distributions
149
A.
Shareholder-Level Consequences
149
1.
Earnings and Profits
150
Rev. Rul. 2009-25
150
Problem 5-1
153
Rev. Rul. 74-164
153
2.
Taxation of Dividends Received by Shareholders Who Are Individuals
157
Problem 5-2
158
3.
Taxation of Dividends Received by Corporate Shareholders
159
a.
Dividends-Received Deduction
160
The Progressive Corp. v. United States
161
b.
Special Treatment of "Extraordinary Dividends"
167
Problem 5-3
169
c.
Debt-Financed Portfolio Stock
169
Rev. Rul. 88-66
170
Problem 5-4
175
B.
Corporate-Level Consequences
175
General Utilities & Operating Co. v. Helvering
175
Problem 5-5
179
C.
Distributions by S Corporations with E&P
180
Problem 5-6
181
ch. 6
Redemptions
185
A.
Introduction
185
B.
Taxation of Corporate Redemptions
188
1.
Shareholder-Level Consequences
188
a.
Constructive Ownership Rules
188
Problem 6-1
189
Problem 6-2
189
b.
Substantially Disproportionate Redemptions
189
Rev. Rul. 81-41
190
Problem 6-3
193
c.
Redemptions Terminating the Shareholder's Interest
193
Lynch v. Commissioner
194
Rev. Rul. 77-293
200
Problem 6-4
202
Problem 6-5
203
Problem 6-6
203
d.
Redemptions Not Essentially Equivalent to a Dividend
204
United States v. Davis
204
Patterson Trust v. United States
209
Rev. Rul. 76-385
214
Rev. Rul. 81-289
215
e.
Partial Liquidations
217
Rev. Rul. 60-322
217
f.
Section 303
219
2.
Corporate-Level Consequences
219
Problem 6-7
220
3.
Redemptions by S Corporations
221
Problem 6-8
222
Problem 6-9
222
C.
Tax Planning Involving Corporate Redemptions
222
Grove v. Commissioner
222
Zenz v. Quinlivan
228
Rev. Rul. 69-608
230
Notice 2001-45
236
H.J. Heinz Company v. United States
238
ch. 7
Transfers to Controlled Corporations
245
A.
Transfers of Property by Shareholders to Corporations
246
1.
The Required Transfer of "Property"
246
James v. Commissioner
246
2.
The "Control" Requirement
252
Kamborian's Estate v. Commissioner
252
3.
"Solely for Stock" Requirement
257
Rev. Rul. 68-55
257
4.
Preservation of Gain or Loss Not Recognized in Section
351
Transaction
261
Problem 7-1
262
5.
Contributions to Capital
264
Commissioner v. Fink
265
B.
Assumption of Liabilities
270
1.
Basic Rules
270
Lessinger v. Commissioner
271
Problem 7-2
276
2.
Anatomy of a Tax Shelter
277
Rev. Rul. 95-74
280
Notice 2001-17
284
Coltec Industries, Inc. v. United States
287
ch. 8
Redemptions Involving Related Corporations
299
A.
Brother-Sister Acquisitions
300
Rev. Rul. 71-563
300
Merrill Lynch & Co. v. Commissioner
306
B.
Parent-Subsidiary Acquisitions
309
Bhada v. Commissioner
310
Problem 8-1
315
ch. 9
Stock Distributions and Preferred Stock Bailouts
317
A.
Distributions of Stock or Stock Rights of the Distributing Corporation
317
1.
Stock Distributions Subject to Shareholder Election to Receive Property Other Than Stock
318
Rev. Rul. 83-68
318
Problem 9-1
321
2.
Stock Distributions with Disproportionate Effect
322
Rev. Rul. 78-60
324
Problem 9-2
328
Review Problem 9-3
329
B.
Preferred Stock Bailouts
330
1.
Definition of Section
306
Stock
331
2.
Dispositions of Section
306
3.
Exceptions
332
ch. 10
Taxable Corporate Acquisitions and Liquidations
335
A.
Shareholder-Level Consequences
336
1.
In General
336
2.
Liquidating Distributions to a Controlling Corporate Shareholder
338
Problem 10-1
338
B.
Corporate-Level Consequences
340
1.
Pre-1986 Law
341
2.
Liquidations under Current Law
345
House Ways and Means Committee Report
345
Problem 10-2
346
3.
Asset Acquisitions under Current Law
347
a.
Effect of Purchase Price Allocation Agreement
348
Commissioner v. Danielson
348
b.
Allocation of Purchase Price to Intangible Assets
352
Problem 10-3
356
4.
Stock Acquisitions under Current Law
357
Notice 2008-111
360
C.
Taxable Acquisitions and Liquidations Involving S Corporations
363
1.
In General
363
2.
The Built-In Gains Tax
365
Problem 10-4
365
3.
Excess Passive Investment Income
367
ch. 11
Nondivisive Reorganizations
369
A.
Origins of the "Reorganization" Concept
370
Marr v. United States
370
B.
Definition of a Nondivisive Reorganization
373
1.
Introduction
373
2.
Nonstatutory Requirements
375
a.
Continuity of Interest (COI) Doctrine
375
May B. Kass v. Commissioner
377
J.E. Seagram Corp. v. Commissioner
380
T.D. 8760
385
Problem 11-1
389
b.
Continuity of Business Enterprise (COBE) Doctrine
389
T.D. 7745
389
c.
Business Purpose Requirement
392
3.
Asset Acquisitions Qualifying as Reorganizations
393
a.
Merger of Target into Issuing Corporation
393
Rev. Rul. 2000-5
393
b.
Forward Triangular Merger
397
S. Rep. No. 90-1653
398
c.
Acquisition of Target's Assets
400
Rev. Rul. 88-48
401
Bausch & Lomb Optical Co. v. Commissioner
403
Problem 11-2
406
Problem 11-3
406
4.
Stock Acquisitions Qualifying as Reorganizations
407
a.
Acquisition of Target's Stock
407
Chapman v. Commissioner
407
Problem 11-4
415
b.
Reverse Triangular Merger
416
S. Rep. No. 91-1533
416
Problem 11-5
418
Tribune Co. v. Commissioner
419
5.
Summary-Acquisitive Transactions as Reorganizations
425
Problem 11-6
425
Rev. Rul. 2008-25
426
6.
Other Nondivisive Reorganizations
427
a.
Transfer of Assets to Controlled Corporation
427
Joint Committee on Taxation Excerpt
429
Problem 11-7
432
b.
Mere Change in Identity, Form, or Place of Organization of One Corporation
433
Rev. Rul. 96-29
434
c.
Recapitalization
436
Bazley v. Commissioner
436
C.
Tax Consequences of a Nondivisive Reorganization
440
1.
Threshold Considerations
440
2.
Tax Consequences to T
441
3.
Tax Consequences to S and P
442
a.
Recognition of Gain or Loss
442
b.
S's basis in T Assets or Stock
442
c.
P's basis in S stock
443
d.
Survival of T's Attributes
444
4.
Tax Consequences to T Shareholders and Security Holders
444
a.
Recognition of Gain or Loss
444
b.
Amount and Character of Gain or Loss
445
c.
Basis in Properties Received
447
Problem 11-8
448
D.
Final Observation
449
ch. 12
Divisive Reorganizations
451
A.
Introduction
451
Rockefeller v. United States
451
B.
Tax Consequences to the Distributee
454
1.
Introduction
454
2.
"Control" and "Distribution of Control"
455
Commissioner v. Gordon
455
3.
Not a "Device"
464
Rev. Rul. 64-102
464
Problem 12-1
466
4.
Active Business Requirement
467
Rev. Rul. 2003-38
468
5.
Nonstatutory Requirements
472
Problem 12-2
473
6.
Tax Consequences to Distributee in Qualifying Section
355
Transaction
474
C.
Tax Consequences to the Distributing Corporation
476
1.
Distributions Preceded by Certain Stock Purchases
478
Problem 12-3
478
2.
Distributions That Are Part of Certain Planned Acquisitions
481
Rev. Rul. 2005-65
483
Problem 12-4
486
3.
Cash-Rich Split-Offs and the Problem of Disguised Exchanges
489
4.
Section
355
Alternatives
491
Notice 94-93
491
ch. 13
Limitations on Net Operating Loss Carryovers
495
A.
Introduction and Prior-Law Limitations
495
1.
Developments Prior to 1954 Code
495
Libson Shops, Inc. v. Koehler
497
2.
Developments Between 1954 and 1986
499
B.
Current-Law Limitations on NOL Carryovers
502
1.
Section
382
Limitation and Required Business Continuity
502
2.
Ownership Change
503
H. Conf. Rep. No. 99-841
504
Problem 13-1
513
Problem 13-2
514
3.
Built-In Gains and Losses
515
Problem 13-3
516
4.
Anti-Avoidance Rules
516
Berry Petroleum Co. v. Commissioner
517
ch. 14
Consolidated Returns
527
A.
Introduction
527
B.
Eligibility
529
Alumax Inc. v. Commissioner
529
Problem 14-1
534
C.
Computation of Consolidated Taxable Income and the Special Treatment of "Intercompany Transactions"
535
Problem 14-2
538
D.
Investment Adjustment Rules
539
Woods Investment Co. v. Commissioner
540
Problem 14-3
542
E.
Loss Limitations on Dispositions of Member Stock
544
Table of Authorities
549
Index
555