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Dec 27, 2024 | 
jdsupra.com | Mark Leeds
The tax advantages for US individuals who become bona fide residents of US possessions can be substantial.1 These tax advantages have lured more than a few taxpayers to take unreasonably aggressive positions that they are entitled to those benefits.2 Although the Internal Revenue Service (IRS) announced an audit campaign to ensure that taxpayers claiming these benefits in Puerto Rico were properly doing so, Congress has been concerned that IRS enforcement was too lax.3 Notwithstanding general...
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Dec 18, 2024 | 
jdsupra.com | Mark Leeds
[co-author: Allison Taylor]*Every parent remembers when their child learns the meaning of the word “no.” That moment often comes as a shock because, up until that moment, most children are models of obedience and unconditional trust. When children learn to exercise free will, a more exasperating aspect of parenting opens. One suspects that the US Court of Appeals for the DC Circuit (the “DC Circuit”) had a parallel experience reading the Tax Court’s recent decisions in Mukhi v.
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Nov 13, 2024 | 
mondaq.com | Mark Leeds
Children learn certain social norms through game playing. In
hide and seek, when the seekers exclaim, "alley alley oxen
free!" the children in hiding are free to return to home
base.It would violate a child's sense of fairness if they could
be tagged after the phrase has been called. But the hiders must
play fair as well.
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Oct 3, 2024 | 
mondaq.com | Mark Leeds
The life settlement market has become so successful that
longevity is now a recognized asset class among institutional, as
well as individual, investors. Market acceptance, however, has not
stopped investors from developing innovative structures to provide
them with exposure to longevity-linked returns. In Estate of
Becker v. Comm'r,1 the Tax Court considered
whether a unique life settlement transaction, which funded itself
for 30 months, had adverse estate tax consequences.
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Aug 2, 2024 | 
jdsupra.com | Mark Leeds |James Williams
Berman v. Comm’r,1 released on July 16, 2024, is a great example of making lemonade when life hands you a lemon. Although the taxpayers lost the federal income tax deferral of a stock sale to an employee stock ownership plan (an “ESOP”) by entering into a constructive sale of their qualified replacement property (“QRP”), they were able to avoid full current taxation by establishing that the constructive sale was entitled to installment sale treatment.
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Jul 30, 2024 | 
mondaq.com | Mark Leeds |James Williams
Berman v. Comm'r,1 released on July 16,
2024, is a great example of making lemonade when life hands you a
lemon. Although the taxpayers lost the federal income tax deferral
of a stock sale to an employee stock ownership plan (an
"ESOP") by entering into a constructive sale of their
qualified replacement property ("QRP"), they were able to
avoid full current taxation by establishing that the constructive
sale was entitled to installment sale treatment.
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Jul 19, 2024 | 
mondaq.com | Mark Leeds |Don Irwin
In August 2023, the US Internal Revenue Service
("IRS") proposed regulations to fulfill the Congressional
mandate to require US tax reporting of digital asset transactions
by brokers and other intermediaries.1 After evaluating
more than 44,000 comments, the IRS has reworked the proposed
regulations and issued them in final form. The final regulations
were published in the Federal Register on July 9, 2024,
and will generally be effective for transactions undertaken in 2025
and thereafter.
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Jul 18, 2024 | 
jdsupra.com | Don Irwin |Mark Leeds
In August 2023, the US Internal Revenue Service (“IRS”) proposed regulations to fulfill the Congressional mandate to require US tax reporting of digital asset transactions by brokers and other intermediaries.1 After evaluating more than 44,000 comments, the IRS has reworked the proposed regulations and issued them in final form. The final regulations were published in the Federal Register on July 9, 2024, and will generally be effective for transactions undertaken in 2025 and thereafter.
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Jul 18, 2024 | 
lexology.com | Mark Leeds |Don Irwin
In August 2023, the US Internal Revenue Service (“IRS”) proposed regulations to fulfill the Congressional mandate to require US tax reporting of digital asset transactions by brokers and other intermediaries.1 After evaluating more than 44,000 comments, the IRS has reworked the proposed regulations and issued them in final form. The final regulations were published in the Federal Register on July 9, 2024, and will generally be effective for transactions undertaken in 2025 and thereafter.
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Jun 24, 2024 | 
mondaq.com | Mark Leeds
The Supreme Court has just weighed in on how gift and estate
taxes apply with respect to non-cash gifts in Estate of
Connelly v. United States. The Court's opinion closely
follows the economics of such arrangements, but overturns an
established estate planning technique. As a result, closely-held
businesses should eschew corporate owned life insurance to fund
redemptions of deceased shareholders in favor of shareholders
holding life policies over each other to fund cross-stock
purchases.
