It has been more than eight months since the enactment of the CARES Act,[i] yet here we are, with the end of 2020 in sight, and we are still debating whether taxpayers should be allowed to claim a deduction for business expenses that were properly paid using the proceeds of a loan under the
safe harbor
The Like-Kind Exchange of “Real Property” According to the Proposed Regulations
By Farrell Fritz P.C. on
Posted in Federal
The Taxable Exchange
As a general rule, a taxpayer’s exchange of one property for another property is treated as a taxable event; the gain realized by the taxpayer – meaning the amount by which the fair market value of the property received by the taxpayer[i] exceeds the taxpayer’s adjusted basis (unrecovered investment) in the…
Tax-Free Spin-Off? That May Depend . . . On Post-Spin-Off Events
By Farrell Fritz P.C. on
Posted in Federal
The Break-Up
After a tense period of disagreement and stalemate, the threat of litigation,[i] the ensuing economic and emotional stress, Client and their former fellow-shareholder (“Departing”) – and onetime friend, before their disagreement on the direction of the business turned into much worse – have gone their separate ways. The corporation (“Corp”)[ii] through…
Rental Real Estate and the Sec. 199A Deduction: Round Two
By Farrell Fritz P.C. on
Posted in Federal Tax Issues
Shortly after Section 199A was added to the Code at the end of 2017, and again after the IRS proposed regulations under the newly-enacted provision last summer, many clients called us with the following question: “Will my rental real estate activities qualify for the 199A deduction?”
In most cases, we were able to answer confidently…