Tax

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Profits Interest and Section 1061 – Three Year Holding Period Requirement for Long-Term Capital Gain Treatment

By Robert L. Jones, III, Esq. Under the Tax Cuts and Jobs Act (“TCJA”), a taxpayer holding an “applicable partnership interest” is required to recalculate any net long-term capital gain realized “with respect to” the “applicable partnership interest” by applying a three-year holding period (instead of the standard one-year holding [...]

By | 2018-10-25T12:50:41+00:00 October 25th, 2018|

Tax Court: Real Estate Professional Allowed Losses Under IRC § 469

The United States Tax Court recently issued an opinion which provides a good analysis of the passive activity loss limitations of Internal Revenue Code § 469 and their applicability to those involved in managing rental real estate. In Birdsong v. Commissioner, T.C. Memo 2018-148 (Sept. 10, 2018), the petitioners, husband [...]

By | 2018-09-25T15:26:56+00:00 September 25th, 2018|

1st DCA: Church Failed To Timely Contest Tax Assessment

Florida’s First District Court of Appeal recently held a church’s complaint challenging the denial of an ad valorem tax exemption should be dismissed for lack of subject matter jurisdiction. In doing so, the court provided a good review of the statutory requirements for a taxpayer to maintain an action contesting [...]

By | 2018-08-22T16:08:53+00:00 August 22nd, 2018|

Section 1031 Exchanges and Proposed Reforms

The 1031 Exchange: Section 1031 of the Internal Revenue Code provides an exception from the rule requiring the current recognition of gain or loss realized upon the sale or exchange of property. Under §1031(a), no gain or loss is recognized if property held for productive use in a trade or [...]

By | 2018-08-17T16:01:00+00:00 June 19th, 2017|

Late Subchapter S Election Relief

If a taxpayer misses the deadline to file a subchapter S election all is not lost. The Internal Revenue Service (IRS) has struggled with the procedures for obtaining relief from missing such a filing. Rev. Proc. 2013-30 is the method for obtaining relief for late S elections. It modifies and [...]

By | 2018-08-17T16:01:31+00:00 November 17th, 2016|