Category Archives: Financial Products
Procedurally Taxing Blog Post By Me On Guaranteed Payments and the Validity of Tax Regulations
October 9, 2020
by Monte A. Jackel
This blog post from the Procedurally Taxing blog site discusses the guaranteed payment as interest issue in the context of how to challenge the validity of tax regulations. I thought it would be of interest. https://procedurallytaxing.com/consistency-and-the-validity-of-regulations/
Read MoreInconsistent Treatment Of Guaranteed Payments As Interest Expense
October 2, 2020
by Monte A. Jackel
Guaranteed payments resemble interest expense under section 163 but those payments are not, as a technical matter, interest on actual indebtedness. Recent IRS regulations have treated guaranteed payments inconsistently. Below is the substance of a letter to the editor that I will be publishing in Tax Notes next Monday. Text Of Substance Of Letter: How […]
Read MoreGrantor Trust Ownership Again
June 5, 2020
by Monte A. Jackel
The IRS very recently expressed its view that changes in the ownership percentages of investors in a multiple owner grantor trust were sales and purchases for federal tax purposes. In Rev. Proc. 2020-34 https://www.irs.gov/pub/irs-drop/rp-20-34.pdf, the IRS provided safe harbors for an entity titled a statutory trust under Delaware law from being treated as having the […]
Read MoreIRS Issues PTP Look-through Ruling That Lacks Authority
April 21, 2020
by Monte A. Jackel
I wrote a letter to the editor of Tax Notes relating to an issue of the pass-through treatment of PTPs when applying the investment company rules of section 351(e) and 721(b). https://www.taxnotes.com/tax-notes-today-federal/partnerships-and-other-passthrough-entities/letter-ruling-ptp-look-through-illegal/2020/04/21/2cfn8. I also posted a comment to that letter in LinkedIn and Twitter. https://www.linkedin.com/feed/update/urn:li:activity:6658337228848156672/ and https://twitter.com/jackeltaxlaw/status/1252571602698620928. Thoughtful feedback to either me or the government […]
Read MoreDeduction of Payroll Costs under PPP of the CARES Act
April 13, 2020
by Monte A. Jackel
The attached story from the Wall Street Journal, which quotes me as well as several others, explains the condundrum. https://jackeltaxlaw.com/wp-content/uploads/2020/04/Multibillion-Dollar-Tax-Muddle-Hovers-Behind-Small-Business-Loan-Program-WSJ.pdf
Read MoreTax Court Worthless Partnership Interest Loss Case Fails to Address Several Key Issues
December 11, 2019
by Monte A. Jackel
In MCM Management, the Tax Court, in a memorandum opinion, held that a partnership interest was worthless and generated an ordinary loss based on the facts of the case. Some key takeaways from the case follow: There is no discussion in the case of cancellation of indebtedness income. Since the court held that there was […]
Read MoreGuaranteed Payments On Capital As Interest Expense
December 9, 2019
by Monte A. Jackel
The attached outline discusses this https://jackeltaxlaw.com/wp-content/uploads/2019/12/COMMENTARY-ON-INTERACTION-OF-THE-TERM.docxissue.
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