Read more about the article Nonqualified Disclaimers to a Charity as a Planning Technique
Charitable Issues / Estate Tax Issues / Tax Articles

Nonqualified Disclaimers to a Charity as a Planning Technique

After your exceedingly long discussion with Uncle Bill a few weeks ago regarding his FBAR filing requirements, there has been total radio silence between you and Bill—not that you mind it in the least bit. The first day of fall came and went, but apparently no one told Florida. It was 85° outside on September 22nd, and though a discolored oak leaf fell onto the hood of your car, you suspected that it was the gold-spotted oak borer (Agrilus coxalis) rather than the changing of the seasons. Little flatheaded bastards. In the bottom of the second inning of your eight-year-old son’s first baseball game of the year, your pocket begins to buzz, and sure enough, Uncle Bill’s name pops up on the caller ID.  You let the call roll to voicemail, and you are surprised five minutes later when the phone buzzes again letting me know that Bill has left…

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October 3, 2021
Business Related Issues
All Articles / Business Related Issues / Tax Articles

Effect of the Build Back Better Act on Corporate and Partnership Taxation

On September 15, the House Ways and Means Committee voted to approve sweeping changes to the Internal Revenue Code through the Build Back Better Act, which proposals, if ultimately passed, will have a significant effect on the taxation of corporations and partnerships. We discussed the changes proposed to affect estate and gift taxation in an earlier article. In this article we explore the effect of the Build Back Better Act on corporate and partnership taxation. The most widely talked about proposal is the increase to the corporate tax rate, but the proposed legislation contains a number of other equally important changes, including a number of international corporate tax issues. However, this article will not touch on the international issues; instead, we’ll focus on the effect that the proposed changes will have on domestic corporations and partnerships. New Corporate Provisions Increase in Corporate Tax Rate The Ways and Means Committee proposed…

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October 3, 2021
Income Tax Issues
Income Tax Issues / Memorandum Opinions / Tax Opinions

Estate of Morgan v. Commissioner
T.C. Memo. 2021-104

On August 23, 2021, the Tax Court issued a Memorandum Opinion in the case of Estate of Morgan v. Commissioner (T.C. Memo. 2021-104). The primary issues presented in Estate of Morgan were whether the petitioners (1) are entitled to deductions claimed on Schedule C for expenses incurred by Falcon, LLC (Falcon), and Falcon Legacy, LLC (Legacy); (2) are entitled to a net operating loss deduction attributable to an alleged NOL carryover from tax years 2010 and 2011; and (3) are liable for an accuracy-related penalty under IRC § 6662(a). Background to Estate of Morgan v. Commissioner The decedent-taxpayer was a homebuilder, which was not the best field to be in around 2008, during the recession. In 2009, a receiver was appointed for the petitioners’ homebuilding entities. The decedent formed a company in 2008 (Legacy) to search for new business opportunities. The decedent-taxpayer also continued to fly aircraft that he owned…

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October 3, 2021