Now showing items 1-10 of 15
Contribution of S Corporation Stock to Disregarded Limited Partnership Did Not Terminate S Election
An S corporation’s sole shareholder transferred all of his stock shares to two newly formed, wholly owned disregarded LLCs. The LLCs then transferred the stock shares to a newly formed state limited partnership that the ...
Guarantee of S Corporation Debt Did Not Increase Basis
A short analysis of the Tax Court case William H. Maloof, TCM 2005-75. Maloof guaranteed a $4 million loan for an S corporation which the company eventually defaulted on. Maloof argued that his loan guarantee should allow ...
LLC Remains Patent Holder of Asset for Capital Gain Purposes
Three co-inventors obtained patents for their inventions. Later, in exchange for membership interests in a new LLC, the inventors transferred their interests in the product to the company. The IRS ruled that the LLC was ...
Court Allows Direct Foreign Tax Credit for Tax Paid by Disregarded Entity
A direct foreign tax credit was proper when a company organized under Luxembourg laws by a U.S. parent company made or accrued advanced corporate income tax payments to Luxembourg. The company’s members did not have joint ...
Activities of Disregarded Entity Do Not Create UBTI
A Section 501(c)(6) trade group formed a wholly owned disregarded limited liability company for the purpose of providing trade show services. The IRS ruled that the activities of the disregarded LLC did not create unrelated ...
S Election Did Not Trigger Recapture of Dual Consolidated Losses Where Closing Agreement Was Signed
A discussion of an IRS ruling stating that under certain circumstances, an S corporation election would not trigger a dual consolidated losses recapture if a closing agreement was entered into by the parent company, its ...
Current Developments in Texas Franchise Tax
Professor Alyson Outenreath provides legislative updates from the 81th session, discusses Texas Comptroller FAQ Guidance, and briefs important court cases published in 2009 in “Current Developments in Texas Franchise Tax.”
ABA Tax Section Comments on Assets-Over Partnership Mergers
This article discusses the ABA Tax Section submitted comments concerning the tax treatment of property distributions following partnership mergers.
IRS Releases Memorandum on Low-Income Housing Limited Partnerships
This article discusses the April 25, 20016 IRS memorandum, issued to its exempt organizations determination agents, explaining the criteria for processing exemption applications under Section 501(c)(3) or (c)(4) for ...
S Corporation Entitled to Interest on Overpayment at the Federal Short-Term Rate Plus 2%
This article discusses Garwood Irrigation Co., where the Tax Court addressed a situation in which an S corporation had overpaid the Section 1374 corporate-level ‘built-in gains tax‘ and was entitled to recover the overpayment ...