1014 (stepped-up basis, applies to transfer by bequest) 27, 59
1015 (carryover basis, applies to transfers by gift) 26 102 (gifts) 25 103 (excludes interest on debt obligations of states) 25 1031 (like-kind exchanges) 65-66 104 (damages in general) 23 1041 (gain/loss not recognized incident to spousal trans.) 58 108 (exclusions) 21 1221 (capital asset) 59 1222 (capital gains/losses) 59 1231 (quasi-capital gains & losses) 62 1239 (sale of depreciable property to related party) 64 1245 (recapture depreciation of personal property) 63 1250 (recapture depreciation of real property) 64 151 (personal exemption) 33 152 (dependency exemption) 33 162 (trade or business expenses) 43 164 (deductibility of state, local & foreign taxes) 32 167 (depreciation) 17, 38 170 (charitable contributions) 30 212 (expenses for production of income) 43 262 (personal, living & family expenses) 44 263 (capital expenditures) 44 71 (alimony) 35 72 (annuity exclusion) 19 7702 (see investment of life insurance) 28 83 (property transferred for services rendered) 9 30-day letter 2 401(K) 14 84-176, Revenue Ruling 22 90-day letter (deficiency notice) 2 99-7, Revenue Ruling (daily transportation expenses) 48 accelerated death benefits (of life insurance) 29 accessions to wealth 5 accounting methods 13 accrual-method 13 achievement award (see employee achievement award) 27 adjusted basis 7 adjusted gross income 2 alimony 35 alimony, basic requirements for taxable/deductible 35 allocation of basis 55 amount realized 6 annuities 19 annuity payment for damages (structured settlement) 24 appreciated property, contributions of 32 appreciation 6 automatic dividend rule 47 awards (see prizes) 27 away from home: for deducting meals & travel 49 bargain purchases 7 basic tax computations 2 basis (see specifics below) 7 basis, & depreciation 38 1 basis, adjusted 7 basis, allocation 55 basis, bequests 27, 59 basis, carryover (general rule of gifts) 26 basis, gifts 26, 58 basis, of property acquired by exercising option 55 basis, stepped-up (general rule of bequests) 27, 59 bequests, basis of 27 bequests, gifts 26 bequests, stepped-up basis 27, 59 Blair v. Commissioner 53 bonds & coupons on bonds, who is taxpayer 53 bonuses to employees 47 boot, received in an exchange 65 borrowing, general notes on 20 business & investment expenses 38 business vs. personal origination of lawsuit 45 buy-sell agreements 29 cancellation of indebtedness 20 cancellation of indebtedness: reduction of basis following 21 capital assets 59 capital assets, items that are not 62 capital expenditures 40 capital expenditures 44 capital expenditures vs. deductible repairs 40 capital gains & charitable contribution deduction 65 capital gains & losses 59 capital gains, policy considerations in taxation of 61 capital investments vs. ordinary & necessary expenses 18 capital losses 61 capital, recovery of 17 carrying charges, form of interest 50 carrying-on requirement 49 carryover basis (general rule of gifts) 26 cash value (of whole life insurance) 28 cash-method 13 casualty fire pot ( 1231) 63 Cesarini v. U.S. 5 charitable contributions & capital gains 65 charitable contributions & tax-exempt organizations 30 charitable transfer (exception to prizes) 27 charitable transfer (general rules of) 30 child support, not alimony 35 child tax credits 3 children, taxation of income of minors 53 clothing, deductible for trade or business 46 commuting expenses 47 commuting, daily transportation expenses 48 compensation for services rendered 8 compensation for services rendered (property) 9 computations, basic tax 2 computations, realized gain or loss 55 consideration vs. gift 58 constructive receipt 15 contributions of appreciated property 32 2 copyright, not capital asset 59, 62 cost recovery, depreciation 38 court, choice of 2 Crane v. Commissioner 40, 56 credits, child 3 credits, personal 36 custodial parents (dependency exemption) 33 damages, in general 23 damages, other than punitives, not included in gross income 24 damages, taxation of 23 Davis v. U.S. (overturned by 1041) 58 death benefits, accelerated (of life insurance) 29 debt, cancellation of 20 declining-balance method (depreciation) 38 deductions, itemized 3 deductions, standard 3 deferred compensation 13 deferred compensation (qualified) arrangements 10, 14 deferred compensation, non-qualified, contractual 15 deficiency notice (90-day letter) 2 dependency exemption 33 dependent-care services, tax credit 36 depreciation 17 depreciation & basis 38 depreciation of intangible property 39 depreciation vs. expensing 39 depreciation, business & investment expenses 38 depreciation, of improvements 39 depreciation, of like-kind exchanges 66 discharge of indebtedness 20 discounts, employee 7 dividend vs. salary 46 dividend, stock: distribution not taxable event 5 dividends, taxable w/o regard to cost basis 17 division of property, not alimony 35 divorce, economics of 35 divorce/marriage transfers 58 divorced parents (dependency exemption) 33 donor's intent (gifts, Duberstein ) 25 Duberstein v. Commissioner 25 earned-income credit 36 Eisner v. Macomber 5, 54 Elliotts, Inc. v. Commissioner 47 embezzled funds, as income to embezzler 15 employee achievement award (exception to prizes) 27 employee discounts 7 employees, gifts to 26 employment-related expenses, personal tax credit 36 exchanges, like-kind 65 exclusion ratio (of an annuity) 19 exemption, dependency 33 exemption, personal 33 expected return (of an annuity) 19 expenses, capitalized 42 expensing in lieu of depreciation 39 3 family partnership 53 Farid-Es-Sultaneh v. Commissioner 58 filing status 34 filing status & personal exemptions 33 Fire pot ( 1231) 63 FMV or basis, which to use in gifting property 58 foreign, local & state taxes 32 forfeiture, substantial risk of 10 forum, choice of 2 gain 6 gain, illegal 15 gift vs. contractual consideration 58 gifts 25, 58 gifts, basis of 26, 58 gifts, bequests/inheritances 26, 59 gifts, of income from property 26 gifts, to employees 26 Gilmore v. U.S. 45 Glenshaw Glass Co. 5 gross income 1, 5 gross income from sales 6 gross income restriction (dependency exemption) 34 group term insurance 28 Hampton Pontiac v. U.S. 18 Hantzis v. Commissioner 49 Harris v. U.S. 25 Haverly v. U.S. 32 head of household, filing status 34 Helvering v. Horst 53 Helvering v. Welch 46 Hirsch v. Commissioner 22 Horst v. Helvering 53 household & dependent care services, tax credit 36 Idaho Power v. Commissioner 41 illegal gain 15 improvements, depreciation of 39 imputed income 24 imputed interest 50 in lieu of (test for taxation of damages) 23 Inaja v. Commissioner 56 incentive stock options 11 income from dealings in property 54 income from property, as gifts 26 income from property, who is taxpayer 53 income, adjusted gross 2 income, gross 1, 5 income, of minor children, taxation of 53 income, taxable 1, 2 indebtedness, qualified real property business 22 INDOPCO v. Commissioner 42 inheritances, gifts 26 injuries, damages for business & personal 24 injuries, damages for personal injuries 24 insolvency exception to cancellation of indebtedness 21 insolvency, definition 21 4 insurance, group term 28 insurance, life 27 insurance, term 28 insurance, whole life 28 intangible property, depreciation of 39 intent of donor (gifts, Duberstein ) 25 interest income & deductions 50 interest, forms of 50 interest, imputed 50 interest, personal 51 interest, state & local obligatons 25 interest, taxable w/o regard to cost basis 17 internal revenue service 1 International Freighting Corp., Inc. v. Commr. 54 inventories 43 inventory, not capital asset 59, 62 investment (of life insurance) 28 investment (of life insurance) taxation of 29 IRA contributions, tax credit for 14 IRA, Roth 13 IRA, traditional 14 itemized deductions 3 itemized deductions, reduction of 4 James v. U.S. 15 Kemon v. Commissioner 62 Kenseth v. Commissioner 44 key person insurance 29 Kirby Lumber Co. v. U.S. 20 letter rulings 1 liabilities giving rise to deductions 22 liability insurers, payments by 9 life insurance proceeds 27 life insurance trust 29 life insurance, taxation of (combine insure & invest) 29 life insurance, term insurance 28 life insurance, transfer for value 29 life insurance, whole 28 like-kind exchanges 65 like-kind exchanges, depreciation of 66 like-kind property 66 limitations, statute of 2 loan-forgiveness programs 23 LoBue v. Commissioner 9 local & state obligations, interest on 25 local, state & foreign taxes 32 long-term/short-term, capital 60 loss 6 lost payments vs. discharge of indebtedness 22 lower of basis or FMV rule 58 Lucas v. Earl 52 lunches, daily: not deductible 48 Macomber 5, 54 marriage/divorce transfers 58 Midland v. Empire 41 minor children, taxation of their income 53 5 mortality gain (annuities) 20 mortality loss (annuities) 20 mortgaged property, transfers involving 56 Moss v. Commissioner 48 moving expenses, carrying-on requirement 50 Mt. Morris Drive-in Theatre Co. 41 multiple support agreements (dependency exemption) 34 Nahey v. Commissioner 61 net-operating carryover 21 non-qualified stock options 10, 11 non-qualified, contractual (deferred compensation) 15 non-recognition transaction & disallowance of losses 65 obligation of payor 9 Old Colony Trust Co. v. Commissioner 8 opportunity cost 12 option, basis of property acquired by exercising 55 ordinary & necessary 46 organizational expenditures, depreciation 40 origination of expenses (business vs. personal) 45 paintings, as capital asset 59 Parker v. Delaney 56 payor, obligation of 9 personal exemption 33 personal exemptions 2 personal exemptions & filing status 33 personal exemptions phase-outs 4 personal injuries, damages for 24 personal interest 51 personal service income, who is taxpayer 52 personal tax credits 36 personal, living & family expenses 44 Pevsner v. Commissioner 45-46 phase-outs, personal exemptions 4 Plainfield-Union test 40 Plainfield-Union v. Commissioner 40 Poe v. Seaborn 52 points, form of interest 50 prizes 27 prizes, exceptions to 27 production of income, expenses for 43 progressive rate system 1 property acquired by bequest, basis of 59 property acquired by gift, basis of 58 property acquired by inheritance, basis of 59 property as compensation for services rendered 9 property as compensation, income & basis 12 property, analysis of transaction 54 property, basis of that acquired by exercising option 55 property, contributions of appreciated 32 property, income from dealings in 54 property, income from, who is taxpayer 53 property, like-kind 66 property, sale of depreciable to related party 64 property, transfers involving mortgaged 56 proportional rate system 1 6 purchase price, reduction of (cancellation of indebtedness) 22 QDRO (qualified domestic relations order) 15, 36 qualified (deferred compensation) arrangments 10, 14 qualified domestic relations order (QDRO) 15, 36 qualified real property business indebtedness 22 Rail Joint v. Commissioner 22 rail-joint principle 22 rate systems 1 Raytheon Production Corp. v. Commissioner 23 realization 5, 7 realization, computation of gain or loss 55 realization, has sale/exchange occurred? 54 reasonableness of compensation to employee 47 recapture of depreciation 63 recognition 7 recovery of capital 17 reduction of basis following cancellation of indebtedness 21 reduction of itemized deductions 4 reduction of purchase price (cancellation of indebtedness) 22 Regenstein v. Edwards 41 regressive rate system 1 rehabilitation, general plan of 41 related party, sale of depreciable property to 64 rent, taxable w/o regard to cost basis 17 repairs, deductible vs. capital expenditures 40 Revenue Ruling 84-176 22 Revenue Ruling 90-16 56 Revenue Ruling 99-7 (daily transportation expenses) 48 Robertson v. Commissioner 49 roll-overs, tax-free 14, 66 Roth IRA 13 rulings, letter 1 Sager Glove Corp. v. Commissioner 23 salary vs. dividend 46 salary, as trade or business expense 46 salary, reasonableness 47 sale of depreciable property to related party 64 sale-or-exchange requirement (capital gains) 61 securities, held for sale to customers in business 62 seeking employment, costs of, carrying-on requirement 50 services rendered, compensation for 8 services rendered, compensation for (property) 9 spouse-to-spouse (or former spouse) transfers 58 standard deductions 3 start-up & expansion costs, carrying-on requirement 50 state & local obligations, interest on 25 state, local & foreign taxes 32 statute of limitations 2 stepped-up basis (general rule of bequests) 27, 59 stock dividend: distribution not taxable event 5 stock option plan: compensation for services 9 stock options, incentive 11 stock options, non-qualified 10 stocks, as capital asset 59 straight-line depreciation 17, 38 7 structured settlement (annuity payment for damages) 24 substantial risk of forfeiture 10 substantially vested (property) 10 substantiation requirements of contributions 31 Tank Truck Rentals 50 tax controversies 2 tax rate (tax rate system) 1 taxable income 1, 2 taxes, state, local & foreign 32 tax-exempt organizations 30 tax-free exchanges 65 taxpayer, who is 51 temporary business, away from home 49 term insurance 28 time-value of money 13 tracing, re: interest 51 trade or business expenses 43 traditional IRA 14 transfer for value (of life insurance policy) 29 transfers involving mortgaged property 56 travel & entertainment 47 treasure trove 5 Turner v. Commissioner 27 uniform, deductible 46 voluntary payment 8 wasting investment requirement 17 Welch v. Helvering 46 whole life insurance 28 Wilcox , overruled by James 16 Wild v. Commissioner 45 Williams v. Commissioner 24 windfall ($$ in piano example) 5 Woodsam v. Commissioner 56 worker's comp, not included in gross income 24 Yeager v. Commissioner 44 8