Taxation-Federal Commons^™

The Life Insurance Company Income Tax Act Of 1959: Tax-Exempt Intercorporate Distributions In Consolidated Filing

Washington and Lee Law Review

No abstract provided.

The Transaction Test For Federal Income Tax Loss Deductions

Washington and Lee Law Review

No abstract provided.

Mandatory Buy-Out Agreements For Stock Of Closely Held Corporations, Douglas A. Kahn

Articles

A buy-out of a shareholder's stock is a sale of his stock holdings in a specific corporation pursuatnt to a pre-existing contract. In recent years such arrangements have, deservedly, become an increasingly popular planning device for shareholders in closely held corporations; they make it possible to limit the class of potential shareholders, provide liquidity for the estate of a deceased shareholder, and establish a value for stock which has no active market. There are two popular categories of buy-out plans. If the prospective purchaser of a decedent's shares is the corporation that issued them, the plan is called an "entity …

Income Tax: Corporate Distribution--Tax Benefit Rule Does Not Qualify The Explicit Nonrecognition Of Gain Provision Of Section 337--Anders V. Commissioner, Michigan Law Review

Michigan Law Review

D. B. Anders was the sole stockholder of D. B. Anders, Inc., an industrial service concern which rented supplies of laundered apparel, coveralls, towels, and related textiles. In May 1961, the corporation adopted a plan of complete liquidation and within twelve months sold substantially all of its operating assets, including the rental items, to another corporation which intended to carry on the same type of business. Of the gain from that sale, $233,000 was allocated to the rental items, the entire cost of which had been deducted by the company in the year of purchase as an ordinary and necessary …

Income Tax: Corporations--Incorporated Professional Service Organization Taxable As A Corporation; Kintner Regulations Held Invalid--Empey V. United States, Michigan Law Review

Michigan Law Review

Lawrence G. Empey, a lawyer, was employed by the Drexler and Wald Professional Company, an association of attorneys that had incorporated in 1961 pursuant to the Colorado Corporation Code and rule 265 of the Colorado Rules of Civil Procedure. Empey began his employment with Drexler and Wald in March 1965, and in November of the same year he acquired ten shares (ten per cent) of the outstanding capital stock of the corporation. On his 1965 federal income tax return, he reported income consisting of his salary as an employee of the company for ten months and ten per cent of …

Income Tax--Capital Gains Tax--Meaning Of "More Than 80 Percent In Value Of The Outstanding Stock" Under Section 1239, Michigan Law Review

Michigan Law Review

The sale of property by a taxpayer to a corporation which he controls has been a frequently attempted method of tax reduction for more than thirty years. Such a transaction has the advantage of maintaining ownership of the property in virtually the same hands, while at the same time resulting in a substantial mitigation of tax liability. For instance, in the post-World War II period, when property values were generally increasing, a taxpayer could sell to his controlled corporation at a gain depreciable property with a basis lowered by adjustments for prior depreciation allowances. The gain was immediately taxable at …

(F) Reorganizations And Proposed Alternate Routes For Post-Reorganization Net Operating Loss Carrybacks, Michigan Law Review

Michigan Law Review

Section 368(a)(l)(F) of the Internal Revenue Code (Code) defines the least complex of all corporate reorganizations-commonly known as the (F) reorganization-as "a mere change in identity, form, or place of organization, however effected." Since 1921, when the (F) reorganization first appeared in a Revenue Act, a significant amount of judicial gloss has been appended to this simple definition. To qualify as an (F) reorganization, a reorganization must result in neither a change of shareholders nor a shift in proprietary interest, and there must be a continuation of the business in the pre-organization fields of activity, using essentially the same operating …

Income Tax--Listing Abandoned Residence For Sale And Not For Rent Considered Sufficient To Convert To "Property Held For The Production Of Income"--Hulet P. Smith, Michigan Law Review

Michigan Law Review

Since 1941, Hulet Smith and his wife had lived in a large house in Arcadia, California, where Smith had been actively engaged in a real estate loan business. In 1959, Smith decided to retire and move to Pebble Beach, a distance of about 400 miles from Arcadia. He purchased a parcel of land in Pebble Beach and built a large expensive home, with the avowed intention of making this his permanent personal residence. In 1961, after severing all business and social connections in the vicinity of their old residence, Smith and his wife moved into their new home, taking virtually …

Income Tax--Recovered Property Previously Deducted Included In Gross Income In Year Of Recovery--Alice Phelan Sullivan Corp. V. United States, Michigan Law Review

Michigan Law Review

In 1989 and 1940 the corporate taxpayer claimed as charitable deductions the value of two parcels of realty which it had donated to a charitable organization subject to the condition that they be used solely for religious or educational purposes. Having decided not to use the gifts in the manner specified, the donee reconveyed them to the taxpayer in 1957. The taxpayer failed to reflect this recovery in its gross income for that year. The Commissioner of Internal Revenue, however, determined that under section 111 of the 1954 Internal Revenue Code (Code) the taxpayer's gross income reported in its 1957 …

Tax Exempt Organizations, Edward A. Lebit

Cleveland State Law Review

Although tax exempt organizations are creatures of the state ,it is under the federal law that they seek exemption from tax. Many unqualified organizations have sought and received this exemption. Many abuses and schemes have arisen, in which even qualified organizations have been made parties. The big question is whether the exemption laws are not clear enough or whether they have been lackadaisically enforced. It is this writer's opinion that the law is adequate, and that strict enforcement of the law is all that is necessary to clear up the tax abuses by non-profit organizations which have taken place since …

Taxation Of Professional Athletes, Ronald B. Cohen

Cleveland State Law Review

There is very little doubt that the current income tax laws are not applied with equal fairness to people of all occupations. There are many groups whom Congress has seen fit to give many tax advantages, both directly and indirectly. Others assert, and rightly so, that they must pay too much of the tax burden. Professional athletes have probably often wondered just which category best fitted them. This article is for the purpose of pointing out some of the unique problems of the "play for pay" boys. I have grouped those problems into three topics, which I call, "Deferred Compensation", …

Payments To Widows--Taxable Income?, Thomas L. Jones

Kentucky Law Journal

No abstract provided.

The Unwarranted Tax Discrimination Against Creators Of Copyrighted Works And Literary, Musical, Or Artistic Compositions Or Similar Properties, Linza B. Inabnit

Kentucky Law Journal

No abstract provided.

State And Federal Taxation: Tax Problems Of Formula Type Of Marital Deduction Bequest, Byron E. Bronston

Articles by Maurer Faculty

No abstract provided.

State And Federal Taxation: Gifts To Or For Minors, Byron E. Bronston

Articles by Maurer Faculty

No abstract provided.

Tax Problems In Probating Estates, Byron E. Bronston

Articles by Maurer Faculty

No abstract provided.

Federal Income Taxes And The Civil Fraud Penalty, Raymond Whiteaker

Vanderbilt Law Review

The drive against tax evaders is now in full swing after a complete reorganization of the Internal Revenue Service, and the new Commissioner has promised an efficient enforcement of all revenue laws. Although the effective administration of the federal income tax rests primarily upon the willingness of the taxpayer voluntarily to disclose his correct income, Congress has provided certain civil and criminal penalties to punish those who have not fulfilled their obligations to the United States Treasury. This article will deal only with the administration and operation of the civil fraud penalty.

The most severe civil penalty that may be …

Capital Gains And Losses Subsequent To Corporate Liquidation, E. Mcgruder Faris, Jr.

Washington and Lee Law Review

No abstract provided.

Income Tax: Oil And Gas Leases As Capital Assets, James Daniel Cornette

Kentucky Law Journal

No abstract provided.

Metaphorical Tax Legislation: The Collapsible Corporation, Mandell Glicksberg, Richard B. Stephens

Washington and Lee Law Review

No abstract provided.

Payments To Widows Of Deceased Employees As Taxable Income Of The Widow--I.T. 4027, James C. Blair

Kentucky Law Journal

No abstract provided.

Effect Of A Carry-Back Of Loss On Right To Interest, W. Lewis Roberts

Kentucky Law Journal

No abstract provided.

The Family Land Trust Treated As An Association For Federal Income Taxation, Carter Glass, Iii

Washington and Lee Law Review

No abstract provided.

Family Partnership V. Corporation -- Income Tax Aspects, Bruce Mcclain

Vanderbilt Law Review

At the outset, it must be emphasized that a decision as to the more desirable mode of doing business should never be based solely upon tax considerations. In every instance, the following legal and practical advantages of transacting business as a corporation must always be borne in mind: (1) Limited Liability. The liability of a stockholder for the debts of the corporation is limited to his investment in its stock, while all of the property bf a general partner is subject to the claims of the firm's creditors, if its assets are insufficient to satisfy such claims in full. (2) …

Income Tax Consequences Of Corporate Debentures, Charles L. Kaufman

Washington and Lee Law Review

No abstract provided.

Kennedy: Federal Income Taxation Of Trusts And Estates, Michigan Law Review

Michigan Law Review

A Review of FEDERAL INCOME TAXATION OF TRUSTS AND ESTATES. By Lloyd W. Kennedy.

The 1943 Revenue Bill, Randolph E. Paul

Indiana Law Journal

No abstract provided.

The Circuit Courts Of Appeals Examine The Clifford Doctrine, Richard W. Case

Maryland Law Review

No abstract provided.

Federal Taxation Of Insurance Trusts, Allan F. Smith

Michigan Law Review

The life insurance trust may take many forms and serve a variety of purposes, but for present purposes it may be defined as a trust, at least part of the corpus of which is a policy of life insurance, in which the duty of the trustee is to receive the proceeds of such policy and administer such proceeds as a trust. Such a trust, like any other, may be revocable or irrevocable, and may be funded or unfunded. These various types will be considered separately only where the tax results vary with the type. The present objective is to survey …

Deductions From Gross Income: Payments And Accruals -Deductible As "Taxes", Robert Hanes Gray

Washington and Lee Law Review

No abstract provided.