Category: Business Transactions
IRS Issues Relief from Repair Regulations and Form 3115 Filing Requirement for Small Taxpayers (Rev. Proc. 2015-20)
On Friday, February 13, 2015, the IRS released an advance version of Rev. Proc. 2015-20, 2015-5 I.R.B. 450, that allows a “small business taxpayer” to make certain tangible property and dispositions changes in methods of accounting with an I.R.C. § 481(a) adjustment that takes into account only amounts paid or incurred,…
Bross Trucking Inc. v. Commissioner of Internal Revenue
T.C. MEMO 2014-107 (2014). Bross Trucking is a fascinating case from an estate planning perspective because it presents facts that occur frequently in the representation of family businesses and the planning issues confronting the entrepreneur. In estate planning for families, advisors often encounter circumstances where the family business is growing, either…
Uncertainty Still Looms – Tax Increase Prevention Act of 2014
With only two weeks remaining in 2014, Congress did the expected and passed the Tax Increase Prevention Act of 2014 (TIPA), with President Obama signing the Act into law soon thereafter. For the 2014 tax year, TIPA extends certain business and individual tax breaks, most commonly known as the “extenders.” For…
Back-to-Back Loans Under Federal Regs
Background Corporate losses and deductions that can pass-through and be deducted by a shareholder are limited by I.R.C. §1366(d)(1). This limit is the shareholder’s total adjusted basis in the corporation’s stock and debt. If a shareholder’s share of losses and deductions exceeds such basis, the excess losses are suspended and…
Creating a Profits Interest in an S Corporation
Assume Glenn and Art are equal shareholders in Allen, Inc., an S corporation. Bob is employed by Allen and manages one aspect of its business, but not all business is conducted by Allen. All of the parties would agree to give Bob a profits interest as incentive for performance and…