Federal income texation of individuals : and basic concepts in the taxation of all entities

목차 (Table of Contents)

• CONTENTS
• PREFACE = XVII
• CHAPTER ONE HISTORY, POLICY AND STRUCTURE = 1
• 1.01 A Brief History of Income Taxation = 1
• (1) In General = 1
• (2) The American Income Tax = 3
• 1.02 Theoretical Aspects of Income Taxation = 8
• (1) Alternatives to the Income Tax = 8
• (a) Printing Money = 9
• (b) Deficit Financing = 10
• (c) Excise, Sales or "Value-Added" Taxes = 10
• (d) Net Worth or Wealth Taxes = 11
• (e) Head Tax = 12
• (f) Consumption or Cash Flow Tax = 12
• (g) The "Flat Rate Tax" = 13
• (2) Problems With the Income Tax = 14
• (a) Allocation of Resources = 14
• (b) Comprehensive Tax Base = 16
• (c) Tax Expenditures = 19
• (d) Complexity = 23
• (e) Other Theoretical Problems = 24
• 1.03 Structure of the Internal Revenue Code = 24
• CHAPTER TWO COMPENSATION FOR SERVICES = 25
• 2.01 In General = 25
• 2.02 Fringe Benefits = 26
• (1) Discounts on the Employer's Product and Other Items of Small Value = 27
• (2) Perquisites of Substantial Value = 28
• (a) Payment of Employee Debts = 28
• (b) Employee Trips and Conventions = 28
• (c) Use of Employer Automobile = 30
• (d) Education Expenses = 30
• (e) Interest-Free Loans = 31
• (f) Moving or Job Changing Expenses and Losses = 33
• (ⅰ) Moving Expenses = 33
• (ⅱ) Losses and Expenses on Sale of Home = 34
• (ⅲ) Interview Expenses = 35
• (g) Benefits Ancillary to the Job = 35
• (h) Miscellaneous Benefits = 36
• (3) Meals and Lodging = 36
• (a) For the Convenience of the Employer = 37
• (ⅰ) Special Problems for Meals = 37
• (ⅱ) Special Problems for Lodging = 40
• (b) On the Business Premises = 41
• (c) Condition of Employment = 42
• (4) Life Insurance = 44
• (a) Group Term Life Insurance = 45
• (b) "Split-Dollar" Life Insurance = 47
• (5) Employee Death Benefits = 49
• (a) Payments Up to $5,000 = 50
• (b) Payments Exceeding $5,000 = 52
• (6) Accident and Health Benefits = 54
• (a) Payment of Accidents and Health Insurance Premiums = 54
• (b) Payments From Accident and Health Insurance Plans = 55
• (ⅰ) Medical Care = 57
• (ⅱ) Loss of Limb or Function of the Body, or Permanent Disfigurement = 58
• (ⅲ) Payments to Certain Totally Disabled Retired Taxpayers = 58
• 2.03 Bargain Purchases of Stock or Other Property = 58
• (1) Unrestricted Property = 59
• (2) Restricted Property = 59
• (a) General Rule = 59
• (b) Election = 64
• 2.04 Miscellaneous Items of Compensation Income = 66
• (1) Tips = 66
• (2) Strike Payments = 67
• (3) Imputed Compensation Income = 67
• (4) Other Miscellaneous Items of Compensation Imputed Income = 69
• CHAPTER THREE OTHER ITEMS OF INCOME AND EXCLUSIONS FROM INCOME = 71
• 3.01 Interest = 71
• (1) In General = 71
• (2) Tax Exempt Interest = 74
• (3) Industrial Development Bonds = 75
• 3.02 Original Issue Discount = 76
• (1) Background = 76
• (2) The 1969 Rules = 79
• (3) The 1982 Rules = 82
• 3.03 Dividends and Other Distributions to Stockholders = 83
• 3.04 Rents = 86
• (1) In General = 86
• (2) Improvements to Leased Property = 86
• (3) Advance Rents = 87
• (4) Leases With Options to Purchase = 88
• 3.05 Royalties = 90
• (1) In General = 90
• (2) Advance Royalties = 90
• (3) License or Sale of a Copyright, Artistic Composition, Memorandum or Similar Property and Certain Patents = 92
• 3.06 Proceeds From Life Insurance = 96
• (1) Rationale for Treatment = 96
• (2) Life Insurance Proceeds Paid by Reason of Death of Insured = 98
• (a) "Life Insurance" Defined = 98
• (b) "Key-Man" Life Insurance = 100
• (c) Proceeds Left at Interest or Paid in Installments = 101
• (3) Life Insurance Proceeds Paid Before Death of the Insured = 103
• 3.07 Annuities = 104
• 3.08 Gifts and Inheritances = 107
• (1) Rationale for Excluding = 107
• (2) Definition of "Gift" = 107
• (3) Gifts of Income From Property = 109
• (4) Inheritances = 110
• 3.09 Prizes and Awards = 111
• 3.10 Scholarships and Fellowship Grants = 113
• (1) Policy = 113
• (2) Degree Candidates = 114
• (3) Non-degree Candidates = 115
• (4) Definition of Scholarships and Fellowships = 116
• 3.11 Discharge of Indebtedness = 119
• (1) General Rule and Background = 119
• (2) Insolvent or Bankrupt Debtor = 121
• (3) Basis Reduction for Solvent Debtor = 122
• (a) Non-elective = 122
• (b) Elective = 122
• 3.12 Recoveries, Reimbursements, and Refunds = 123
• (1) The Effect of Earlier Deduction : The Tax Benefit Rule = 123
• (2) Recovery of Damages to the Person or Business = 129
• (a) In General = 129
• (b) Damages From Personal Injuries = 130
• (c) Damages From Injuries to Business = 131
• (d) Special Rules for Damages From Libel and Slander = 135
• 3.13 Alimony and Similar Payments = 136
• 3.14 Miscellaneous Items of Income and Exclusions From Income = 136
• 3.15 Reporting Exempt Income = 143
• CHAPTER FOUR INCOME FROM DISPOSITIONS OF PROPERTY = 144
• 4.01 Overview = 144
• 4.02 The Requirement of a Realization = 146
• (1) In General = 146
• (2) Marital Property Settlements and Other Satisfactions of Obligations = 150
• 4.03 Computation of Gain or Loss Realized = 151
• (1) Amount Realized = 151
• (2) Adjusted Basis = 152
• (a) Background = 152
• (b) Cost Basis = 153
• (ⅰ) In General = 153
• (ⅱ) Mortgages and Other Debts of the Purchaser or Seller = 154
• (ⅲ) Adjustment of the Purchase Price = 156
• (ⅳ) Bargain Purchases of Property by Shareholders or Employees = 156
• (ⅴ) Miscellaneous Problems = 157
• (c) Carryover Basis = 157
• (ⅰ) Gifts = 157
• (ⅱ) Transfers in Trust = 160
• (ⅲ) Property Acquired From a Decedent : The Saga of Carryover Basis = 160
• (d) Substituted Basis = 162
• (e) Fair Market Value Basis : Property Acquired From a Decedent = 162
• (f) Special Rules for Stock, Securities and Mutual Fund Shares = 163
• (g) Adjustments to Basis : The Basis as History = 164
• 4.04 Disallowance of Some Losses and Exclusion of Some Gains = 164
• (1) In General = 164
• (2) Losses From Sales of Residence or Other Personal-Use Property = 165
• (3) Losses From Sales of Property in Activities Not Engaged in for Profit = 167
• (4) Disallowance of Losses Versus Nonrecognition of Losses = 167
• (5) Exclusion of Gain From Sale of Residence by Individual Who Has Attained Age 55 = 167
• 4.05 Recognition of Gain or Loss = 169
• (1) In General = 169
• (2) Tax-Free Exchanges of Business or Investment Property of "Like Kind" = 170
• (a) Overview = 170
• (b) The Requirement That the Property Be of "Like Kind" = 171
• (ⅰ) Real Property = 171
• (ⅱ) Personal Property = 173
• (c) The Requirement That the Property Be Held for Productive Use In Trade or Business or For Investment = 174
• (d) The Receipt of Money or Other Property("Boot") : Recognition of Gain, Basis Rules, Liabilities = 175
• (e) Multi-Party Transactions = 180
• (3) Tax-Free Involuntary Conversions(Condemnations, Casualties) Where Proceeds Reinvested = 182
• (a) General Rules = 182
• (b) Involuntary Conversions of Real Estate = 184
• (4) Tax-Free Sales of Residence Where Proceeds Reinvested = 187
• (5) Other Tax-Free Transactions = 189
• (6) Wash Sales of Stock or Securities = 189
• (7) Losses on Sales and Exchanges Between Related Taxpayers = 193
• (a) In General = 193
• (b) "Related Taxpayers" : Constructive Ownership Rules = 194
• (c) Use of Disallowed Loss by Buyer = 197
• 4.06 Character of Gain or Loss : Capital Gains = 198
• (1) The Preferential Treatment of Capital Gains = 198
• (2) The Rules for Taxing Capital Gains and Losses = 200
• (a) Background = 200
• (b) The Mechanics = 201
• (ⅰ) Capital Gain Net Income Rules = 201
• (ⅱ) Capital Loss Rules = 204
• (c) Planning Implications = 211
• (ⅰ) Holding Appreciated Property Indefinitely = 211
• (ⅱ) Holding an Appreciated Capital Asset Longer Than One Year = 211
• (ⅲ) Selling Property That Has Declined in Value = 212
• (ⅳ) Combined Gains and Losses = 213
• (ⅴ) Holding Period Problems : Short Sales and Short Sales "Against the Box" = 215
• (ⅵ) Tax Straddles Under the Economic Recovery Tax Act of 1981 = 221
• (3) Definition of Capital Gains and Losses = 225
• (a) Statutory and Judicial Rules = 225
• (ⅰ) Inventory, Property Held Primarily for Sale to Customers = 228
• (ⅱ) "Corn Products" Assets = 232
• (ⅲ) Depreciable and Real Property Used in a Trade or Business = 235
• (ⅳ) IRC Section 1231 Treatment = 237
• (ⅴ) Copyrights, Literary or Other Artistic Compositions Created by the Taxpayer, Memoranda Held by the Taxpayer and Similar Property = 244
• (ⅵ) Patents = 246
• (ⅶ) Recapture of Depreciation = 248
• (A) In General = 248
• (B) Depreciation Recapture Under the Economic Recovery Tax Act of 1981 = 253
• (ⅷ) Sale of Depreciable Property to a Related Party = 254
• (ⅸ) Accounts Receivable = 257
• (ⅹ) Transfers of Franchises, Trademarks and Trade Names = 257
• (xi) Cancellation of Lease or Distributor's Agree-ment = 257
• (xii) Retirement of Bonds = 257
• (xiii) Worthless Securities = 258
• (xiv) Bad Debts = 258
• (b) Planning Implications : Sale of a Going Business = 259
• (4) Policy Aspects of Capital Gains Taxation = 262
• CHAPTER FIVE ASSIGNMENT OF INCOME : WHO IS TAXED AND THE NATURE OF THE TAX = 266
• 5.01 Background = 266
• 5.02 Gratuitous Assignments of Income : Birth of a Metaphor = 268
• 5.03 Assignments of Income for Consideration = 270
• 5.04 Application of Assignment of Income Doctrine = 274
• (1) Oil, Gas and Other Minerals = 274
• (2) Leases = 275
• (a) Gratuitous Assignments = 275
• (b) Assignments for Consideration - Cancellation of the Lease by Landlord or Tenant = 275
• (c) Assignments for Consideration - Third Party Transactions = 277
• (3) Trusts = 279
• (a) Creation of the Trust = 279
• (b) Assignments by Trust Beneficiaries = 280
• 5.05 Assignment of Income Without Tears = 282
• CHAPTER SIX BUSINESS DEDUCTIONS = 283
• 6.01 Structural Issues in General = 283
• 6.02 Deductions Arising Out of Business and Profit Seeking Activity = 285
• (1) Ordinary and Necessary Business Expenses = 285
• (2) Expenses for the Production of Income, or for the Maintenance of Investment Property = 287
• (3) Travel and Transportation Expenses = 289
• (4) Mixed Business and Pleasure Travel Expenses = 292
• (5) Entertainment, Amusement and Recreation Expenses = 294
• (6) Business Gifts = 296
• (7) The Substantiation Requirement for Travel, Entertainment, and Business Gifts = 296
• (8) Moving Expenses = 298
• (9) Activities Not Engaged in for Profit = 300
• (10) Office in the Home = 304
• (11) Rental of Vacation or Other Homes = 307
• (12) Depreciation and Accelerated Cost Recovery = 309
• (a) General Rules = 309
• (b) The ACRS System of the Economic Recovery Tax Act of 1981 = 314
• (13) Other Business Deductions = 318
• (a) Depletion = 318
• (b) Intangible Drilling and Development Costs = 319
• (c) Bond Premium = 320
• (d) Miscellaneous Rapid Write-Offs = 320
• 6.03 Limitations on Deductions = 320
• (1) In General = 320
• (2) The Limit of Reasonable Compensation for Services = 321
• (3) The Limit of Personal Expenses = 323
• (a) Miscellaneous Personal Expenses = 323
• (b) Education Expenses = 324
• (4) The Limit of Capital Expenditures = 327
• (5) The Limit of Public Policy = 329
• (a) Background = 329
• (b) Illegal Bribes, Kickbacks and Other Payments = 330
• (c) Fines and Penalties = 331
• (d) Treble Damage Payments Under the Antitrust Laws = 331
• (e) Expenses to Influence Legislation and Elections = 332
• (6) Other Limits = 333
• (a) Expenses and Interest Relating to Tax Exempt Income = 333
• (b) Sham or Uneconomic Transactions = 334
• CHAPTER SEVEN PERSONAL DEDUCTIONS AND EXEMPTIONS = 336
• 7.01 Personal Deductions = 336
• (1) Personal Deductions Distinguished From Business Deductions = 336
• (2) Alimony and Similar Payments : Two Earner Married Couple Deduction = 338
• (3) Expenses of Tax Advice and Litigation = 342
• (4) Interest = 342
• (5) Taxes = 346
• (6) Casualties and Other Losses = 347
• (a) Casualties = 347
• (b) Other Losses = 352
• (7) Bad Debts and Worthless Securities = 354
• (a) Bad Debts = 354
• (b) Worthless Securities = 357
• (8) Medical Expenses = 358
• (9) Charitable Contributions = 360
• (a) In General = 360
• (b) Percentage Limits = 364
• 7.02 Personal and Dependency Exemptions = 366
• 7.03 The Zero Bracket Amount = 371
• CHAPTER EIGHT TAX PLANNING = 373
• 8.01 Introductory = 373
• 8.02 Tax Shelters = 373
• (1) The Building Blocks of Tax Shelters = 373
• (2) The "At Risk" Limitations = 383
• (3) Judicial and Administrative Limitations = 387
• 8.03 Deferred Payment Sales = 391
• (1) In General = 391
• (2) The Installment Method of Reporting = 392
• 8.04 Deferred Compensation : A Survey = 395
• (1) In General = 395
• (2) Nonqualified Arrangements and Incentive Stock Options = 396
• (3) Qualified Plans = 398
• (4) Keogh Plans, Professional Corporations, IRA's, and Employee Stock Purchase Plans = 399
• CHAPTER NINE COMPUTATION OF TAX LIABILITY = 404
• 9.01 In General = 404
• 9.02 Add-On Minimum Tax and Its Repeal = 405
• 9.03 Alternative Minimum Tax = 407
• 9.04 Income Averaging = 409
• CHAPTER TEN CREDITS = 412
• 10.01 In General = 412
• 10.02 Investment Credit = 413
• 10.03 Other Business Credits = 416
• 10.04 Child etc. Care Credit = 416
• 10.05 Residential Energy Credit = 419
• 10.06 Other Nonbusiness Credits = 419
• Table of Cases With Parallel Citations = 421
• Table of Internal Revenue Code Sections = 443
• Table of Treasury Regulations = 457
• Table of Revenue Rulings = 463
• Table of Articles and Books Cited = 467
• Index = 477