Fed Income Tax
Terms
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- Benaglia
- (1) when the benefits are for benefit of eer, this is not income
- 119
- codification of Benagliaa
- 132
- de minimis fringe benefits are not income
- treasure trove
- income, valued at fmv
- 61
- general income provision
- swapped services
- are income under 61
- 104
- no taxes on personal injuries, other judgments are 61 income
- 102
- gifts; precludes tax for gifts and inheritance
- 102c
- you don't tax awards from eer's but ee's must report other gifts from eers as income
- Duberstein
- detatched and disinterested generosity is req'd for donative intent
- 1001a
- gain/loss = amount realized - adj basis
- 1001b
- amount realized = any cash + FMV of all non-money property at tim
- 3 ways to get basis
-
1012 - cost
amount paid in taxes on property
gift/inheritance - Basis when x-ferred by living donor
- take the donor's basis (TAFT/BOWERS)
- Basis when x-ferred at death
- take the FMV - 1014
- CLARK
- when one is compensated by an acct for the mistake leading to overpayment, it is not income; however, if you weren’t paid this money by the acct, it would not be a loss
- 172
-
adjustment of sanford/brooks, allows losses to be carried back 2 yrs and fwd 20
NET OPERATING LOSS - 111
- tax benefit rule: when you take a loss in one year, and recover it in another, it does not matter what marginal rate you took the loss at; you take the recovery as income at the rate at which you receive it
- KIRBY
- discharge of debt = income
- CRANE
- when you sell an inherited property that you have taken deductions on, you must include the deductions and the boot as the proceeds of the sale
- TUFTS
- similar to crane, ends tax shelters, says that non-recourse borrowing that leads to relinquished property
- MACOMBER
- determination that new shares issued in dividend form are not immediately recognizeable
- 1031
- non recognition provisions due to exchange of like kind goods
- DRESCHER
- when man's eer buys him an annuity, he has an econ benefit because the entitlement to payments is indefeasibly his
- 83
- take options as income on their granting, pay nothing when exercised, cap gains when disposed - no loss allowed for diminished value at exercise
- 422
- incentive stock option - tax on cap rate gains at disposition only?????
- 1041
-
settlements for divorce, treats settlements as gifts, basis is x-ferred
YOU MUST BE MARRIED - 215/71
- alimony - must be cash, can't be frontloaded
- 456
- AAA Inspired - allows prepaid dues to be expensed over the course of a year
- 165(c)(3)
- allows deductions from losses, fire, shipwreck, storm or other casualty, subject to 10% AGI floor
- 213
- Expenses paid for Medical Expenses, 7.5%
- 262
- Non-deductible family expenses
- 170
- personal charitable deductions
- 5163h2
- Interest - only qualified residence interest is allowed
- 164
- itemizes state and local taxes
- 183
- Hobby basket?
- 162a
- expenses that are "ordinary and necessary in carrying on trade or business" are deductible
- 212
- expenses for generating income are allowed, subject to 67 (2% floor)
- 280A
- home office
- 274
- meals and entertainment "directly related" to business are 50% deductible
- 162a2
- commuting expenses, must be "while away from home"
- 168
- useful life for amortization purposes
- 263
- main capitalization provision
- 465
- can't borrow to take a deduction on a single premium annuity; you must be at risk (i.e. with a qualified bank)
- 469
- passive activity loss rule; response to shelter, losses can only be offset from your basket
- LUCAS/EARL
- money is taxed to the person who earns it
- BLAIR
- income from property taxable to the person who owns it
- 1221
- Defines capital gain provision
- 1222
- Capital gain/loss comes from 'sale or exchange of a capital asset'
- HORT
- when you get paid in lump sum in exchange for future income, wihtout disposing of the property, ordinary income