In a recent memorandum decision of the Tax Court in Howell, TCM 2012-303, a couple was held liable for a deficiency in self-employment taxes, plus
The U.S. Tax Court, in 1982 East, LLC v. Commissioner of Internal Revenue, T.C. Memo. 2011-84 (2011), again upheld the disallowance of a charitable deduction under section 170 of the Internal Revenue Code for the contribution of a historic preservation easement.
In Boltar LLC et al v. Commissioner, 136 T.C. No. 14 (4152011) the Tax Court granted the government’s motion in limine, which motion was timely submitted pre-trial, to strike the admission of the taxpayer’s experts’ report into evidence at trial based on its argument that the report was “unrealiable and irrelevant” under FREV 702 and the Supreme Court’s landmark decision in Daubert v. Merrell Dow Pharmaceutical, Inc., 509 U.S. 579 (1993).
The Tax Court, in a consolidated case involving a distressed assetdebt tax shelter, held that several partnerships’ basis in purchased consumer debt acquired from a Brazilian company was zero and that the transfer to the partnerships and subsequent redemption of the Brazilian company's partnership interests were a sale of receivables
In Henry Samueli et al v. Commissioner, 132 T.C. No. 4 (2011), the Tax Court, per Judge Kroupa’s opinion for the majority, in response to the petitioners and respondent (IRS) filing of cross motions for summary judgment in a consolidated proceeding, upheld the Service’s deficiencies in income tax for denying the taxpayers interest deductions claimed on the underlying “margin loans” used to acquire the securities, were disallowed on the basis the purported payments of “interest” were not made with respect to an actual debt
In Historic Boardwalk Hall, LLC. v. Commissioner, 136 T.C. No. (2011) the Tax Court ruled a limited liability corporation (LLC) formed to facilitate a corporation’s, i.e., Pitney Bowes’, investment in the rehabilitation of an historic government building (East Hall, a National Historic Landmark property in Atlantic City, New Jersey) had business purpose and was not a sham.
In Historic Boardwall Hall, LLC V Commissioner, 136 T.C. No. (2011) the Tax Court ruled that a LLC which was formed to facilitate a corporation's, i.e, Pitney Bowes, investment in the rehabilitation of an historic government building, East Hall, a National Historic Landmark property in Atlantic City, New Jersey had business purpose and was not a sham.
In Canal Corp, supra, the Tax Court recently held that a corporation's 1999 transfer of a wholly owned subsidiary to a joint venture was a disguised sale that required the company to include in capital gain the amount realized in the year of sale on its consolidated federal income tax return.
Canadians seeking to make investments in US-based private equity funds do face a challenging landscape attributable to the multitude of US taxing authorities, federal, state and local governmental taxing authorities, as well as a somewhat counterintuitive home country tax regime, in reporting their U.S. operations back home in Canada.
On September 13, 2010, the Service, in REG-119921-09, issued somewhat landmark proposed regulations concerning the classification for Federal tax purposes of a series of a domestic series limited liability company (LLC), a cell of a domestic cell company, or a foreign series or cell that conducts an insurance business.