Category Archives: Tax Decisions

Ownership in real estate through a partnership as opposed to mere co-ownership (tenancy-in-common) can result in vastly divergent estate and income tax consequences. Either classification may at times be preferable to the other. Rev. Proc. 2002-22 provides guidance for taxpayers … Continue reading →

The 10th Circuit Court of Appeals has held that a decedent’s estate cannot initiate an innocent spouse claim for relief under IRC Sec. § 6015(c). Jonson, CA-10 (12/30/03). [The spouses claimed deductions attributable to the husband’s interest in a limited … Continue reading →

Notice 2004-2 provides guidance for new Health Savings Accounts (HSAs) which, beginning in 2004, may be funded by an “eligible individual” with tax deductible cash contributions which grow tax-free. Tax-free distributions from the account may be made by the taxpayer … Continue reading →

Reversing the 9th Circuit Court of Appeals, the Supreme Court has held that a timely assessment against a California partnership extends the statute of limitations for collection of tax against the general partners. U.S. v. Galletti et al, 541 U.S. … Continue reading →

Under Internal Revenue Code  Sec. 1001, gain or loss realized on the sale or exchange of property is the excess of the amount realized over the adjusted basis. If one purchased 100 shares of Exxon in August, 1993, and sold … Continue reading →

The Court of Appeals for the 2nd Circuit has affirmed a district court decision finding the attorney-client privilege inapplicable, and enforcing an IRS summons directed to Sequa Corporation (Sequa), to produce a memorandum prepared by Arthur Anderson (AA) at the … Continue reading →

In a terse and unusually critical opinion, the Ninth Circuit Court of Appeals, over a dissent, has reversed the Tax Court’s controversial decision in Estate of Simplot (see Tax News, Oct. 1999), remanding the case and ordering that judgment be entered in favor of the estate, annulling the deficiency of $2.16 million. 87 AFTR 2d ¶2001-2165 (5/14/2001). Continue reading →