Thought-provokinganalysis and opinion on federal tax issues

Category Archives: General Tax Matters

A Principal Purpose Regs Over The Past Few Decades

October 26, 2020

by Monte A. Jackel

I am attaching a short write-up on the “a principal purpose” anti-abuse regulations generally. I thought this would be of interest. https://jackeltaxlaw.com/wp-content/uploads/2020/10/A-Principal-Purpose.docx.

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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/

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Inconsistent 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 […]

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NY Times Story On Trump Taxes: The Internal Revenue Code Favors Real Estate Professionals but….

September 28, 2020

by Monte A. Jackel

I wrote a post yesterday evening on LinkedIn. Here is the link. https://www.linkedin.com/in/monte-jackel-18921024/detail/recent-activity/shares/. The text is reproduced below. I am not offering a view, one way or the other, on the merits of the matters discussed. Who could competently do that without adequate facts and requisite knowledge? But I can say that the tax law […]

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New S Corporation Case And The Check-The-Box Regulatons

September 19, 2020

by Monte A. Jackel

This case came out today. https://www.ustaxcourt.gov/USTCInOp2/OpinionViewer.aspx?ID=12322.  1. It deals with whether a controlling person of a Kentucky not for profit corporation was an S corporation shareholder.  2. I do not disagree with the holding of the court, which seems very apparent; beneficial ownership, a proprietary interest, is necessary to be a shareholder. 3. However, the mode […]

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Video Discussion on Carried Interests

August 7, 2020

by Monte A. Jackel

Tax Notes just released this video. https://www.youtube.com/watch?v=6GGcBwJIh48. It is a discussion by me with Ben Willis, contributing editor of Tax Notes, on Ben’s regular monthly Willis Weighs In podcast. This video was recorded right before the regulations were released but it contains a number of what I think are interesting issues. I thought this would […]

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Some Preliminary Observations on the Partnership Aspects of New Final and Proposed 163(j) Regulations

July 31, 2020

by Monte A. Jackel

Recent regulations under section 163(j) were issued in final form and new regulations were proposed. Some high level highlights reflecting several posts I have on LinkedIn here. https://www.linkedin.com/in/monte-a-jackel-18921024/detail/recent-activity/. Some post excerpts are below. “On the proposed 163(j) regulations relating to partnerships, a few questions. First, why don’t the rules address where a partnership lends to […]

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Partnership Aspects of Final FDII Regulations

July 12, 2020

by Monte A. Jackel

I put together this brief outline with highlights and the pertinent provisions of the final FDII regulations as they relate to partnerships and partners. https://jackeltaxlaw.com/wp-content/uploads/2020/07/Proposed-250-regs.docx. Thought it would be of interest. The highlights of these regulations as they relate to partnerships and partners follow. With respect to partnerships and partners, the inclusion rule refers to […]

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Proposed Section 1031 Real Property Regulations Contain A Glitch

June 12, 2020

by Monte A. Jackel

The IRS recently proposed regulations relating to the definition of real property for purposes of section 1031. https://www.federalregister.gov/documents/2020/06/12/2020-11530/statutory-limitations-on-like-kind-exchanges. These proposed regulations state that a number of regulations under section 1031 will no longer apply unless the exchange involves a qualifying exchange of real property. Among those listed final regulations are reg. sec. 1.1031(d)-2, dealing with […]

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Grantor 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 […]

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Disguised Sales and the Centralized Partnership Audit Regime

June 3, 2020

by Monte A. Jackel

I posted this recently in the Procedurally Taxing blog. https://procedurallytaxing.com/disguised-sales-to-partnerships-bba-centralized-audits-and-due-process/. It deals with disguised sales to partnerships, the BBA centralized partnership audit regime, whether the selling partner’s gain is part of the imputed underpayment, and the due process issue raised if the selling partner is separately audited on the sales gain which is not treated […]

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Recently Proposed Rehabilitation Tax Credit Regulations

May 21, 2020

by Monte A. Jackel

Proposed regulations under section 47, REG-124327-19, filed on May 21, 2020 with the federal register, provides guidance on the requirement added in the Tax Cuts and Jobs Act (TCJA) relating to the allocation of the rehabilitation tax credit over a five year period. Those proposed regulations also provide guidance on the interaction between the new […]

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Recent Presidential Executive Order and Its Potential Effects on Tax Regulations

by Monte A. Jackel

I recently posted this on the Procedurally Taxing blog. It deals with the potential effects of a recent presidential executive order on tax regulations. I thought it would be of interest. https://procedurallytaxing.com/executive-order-on-regulatory-relief-to-support-economic-recovery/.

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Procedurally Taxing Blog Post On the APA and Tax Regulations

May 15, 2020

by Monte A. Jackel

Thought this would be of interest. https://procedurallytaxing.com/conservation-easement-donation-and-the-validity-of-tax-regulations/

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Procedurally Taxing Blog by Me On The Role of FAQs

May 8, 2020

by Monte A. Jackel

Just published this on the Procedurally Taxing blog on the role of FAQs. Thought it would be of interest. https://procedurallytaxing.com/the-proper-role-of-faqs/. See also https://procedurallytaxing.com/.

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Another Procedurally Taxing Blog Post by me on amended tax returns

May 5, 2020

by Monte A. Jackel

This post on the Procedurally Taxing blog deals with whether amended tax returns can be mandated by the IRS. I thought this would be of interest. https://procedurallytaxing.com/the-newest-time-machine/

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Procedurally Taxing Blog Item By Me

May 4, 2020

by Monte A. Jackel

This blog is a tax procedure blog by Professors Book, Fogg et al. https://procedurallytaxing.com/helpful-links/. I thought the item I posted on tax returns and the coronavirus pandemic would be of interest. https://procedurallytaxing.com/the-wavering-due-date-for-tax-returns/

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IRS 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 […]

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Deduction 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

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Some Recent Posts on LinkedIn

March 20, 2020

by Monte A. Jackel

I have posted a number of comments on LinkedIn dealing with various current developments. They are located here. https://www.linkedin.com/in/monte-a-jackel-18921024/detail/recent-activity/

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Table of Contents to Prior Posts

February 16, 2020

by Monte A. Jackel

Attached is a link to a document containing a list of all prior posts which have previously been posted on this website. If you would like a copy of something previously published, please let me know. https://jackeltaxlaw.com/wp-content/uploads/2020/02/Table-of-contents-for-web-posts-1.pdf

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Tax 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 […]

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Guaranteed 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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