Vol. 56, No. 1 - Fall 2002

In Memoriam: Scott P. Crampton

Don V. Harris, Jr.

Scott P. Crampton was a solid citizen. We especially remember and respect him for his Chairmanship of the Tax Section (1969-1970), and those of us who enjoyed knowing him and working and playing with him remember much more. ...

Timing and Base Differences Under Section 904(d)

Benjamin J. Cohen and Jay Geiger

In an era when the idea of increasing harmonization of international tax rates appears moribund, it should come as no surprise that the taxing systems of the United States and other nations often remain widely divergent with respect to such fundamental concepts as...

A Plea for the Repeal of Section 107: No More Tax-free Mansions for Dubious "Ministers of the Gospel"

Kamron Keele

As a general rule, under section 61 of the Code, compensation for services should be included in gross income. Section 107 (hereinafter sometimes referred to as the parsonage allowance exclusion), however, provides that gross income does not include...

Accounting Methods-Which Retroactive "Corrections" Require Service Consent?

Felix B. Laughlin and Kathleen C. Dale

Over the last three decades, the Internal Revenue Service has attempted, with uneven results, to uphold its expansive view of what constitutes a taxpayer-initiated change in method of accounting requiring the Service's consent under section 446(e). ...

Does Regulation Section 1.704-2 Permit Special Allocations of Nonrecourse Deductions Attributable to Exculpatory Liabilities?

Bethany Atkins Rice

The section 704(b) regulations of the Internal Revenue Code that allocate nonrecourse deductions for partnerships were originally drafted in tandem with the section 752 regulations, which allocate nonrecourse debt for basis purposes. ...

Taxation

2001 Erwin N. Griswold Lecture .Before the American College of Tax Counsel: Erwin Griswold's Tax Law-and Ours

Michael J. Graetz

It is a pleasure for me to be here today to deliver the Erwin N. Griswold Lecture. And it is an honor to follow those who have graced this lectern before me. They include important mentors to me. Several are close friends. ...

Survey of State Tax Treatment of Section 1031 Exchanges

ABA Section of Taxation Committee on Sales, Exchanges and Basis

Editors' note: this chart is a summary, as of October 17, 2002, derived from the Task Force's study of applicable and available state materials including informal usages and customs. As such, it should be considered indicative, not definitive. ...

Comments in Response to Notice 2000-29

ABA Section of Taxation

The recent rise in the popularity of the use of options, convertible debt, and preferred partnership interests convertible to "common" partnership interests both in the employee compensation area and when issued or deemed issued for consideration...

Comments on Advance Notice of Proposed Rulemaking Under Section 263(a) Related to Capitalization Issues Regarding Expenditures Incurred in Acquiring, Creating, or Enhancing Intangible Assets

ABA Section of Taxation

This document provides comments prepared by members of the American Bar Association Section of Taxation on the Advance Notice of Proposed Rulemaking published in the Federal Register on January 24, 2002. The ANPRM describes rules and standards...

Which Price Is Right? Valuing Real Estate Purchased in Bulk with Nonrecourse Promissory Notes: Epic Associates v. Commissioner

Brett Dockwell Kravitz

The purchase of multiple items of real property in a single transaction—a "bulk" purchase—can raise issues in establishing a valuation for tax purposes. One question that arises is whether multiple properties purchased in bulk may be valued based on appraisals of each individual property. ...

Debating the "Plain Meaning" of Section 355's Active Business Requirement: McLaulin v. Commissioner

Laurelle C. Lo

In McLaulin v. Commissioner the Eleventh Circuit held that a distribution by an S corporation of its ownership interest in a subsidiary corporation did not qualify for non-recognition treatment as a spin-off under sections 355(a)(1)(C) and (b)(2)(D)(ii). ...

The Friendly Skies: Per Diem Allowances to Airline Employees Deemed Compensation: UAL Corporation v. Commissioner

Scott M. Singer

In UAL Corporation and Subsidiaries v. Commissioner, the United States Tax Court held that per diem allowances paid to traveling employees were deductible as personal service compensation under section 162(a)(1) of the Code. ...

Treating Lottery Payments as an Annuity for Estate Tax Purposes: Estate of Gribauskas v. Commissioner

Petra R. Smeltzer

In Estate of Gribauskas v. Commissioner, the Tax Court held that a decedent's right to receive lottery payment installments constituted a private annuity, which should be valued through the use of the actuarial tables mandated by section 7520. ...

Allowing Sales Between Related Parties in Closely Held Corporations to Evidence Fair Market Value: A Departure from the Norm in Morrissey v. Commissioner

Emily A. Whelan

In Morrissey v. Commissioner, the Court of Appeals for the Ninth Circuit reversed the Tax Court and held that in valuing an estate's interest in a closely held corporation, sales of a minority interest in the corporation's stock between distant family members were good evidence of fair market value. ...