Volume 52, No. 4 - Summer 1999

Articles

Are Separate Liability Losses Separate for Consolidated Groups?

Don Leatherman

This article considers how a consolidated group should account for a separate liability loss, a subject of continuing litigation between the government and taxpayers. I conclude that a consolidated group should determine its SLL in the first instance as if it were a single entity...

The A.L.I. Tax Treaty Study-A Critique and A Modest Proposal

Philip F. Postlewaite and David S. Makarski

As of January 1, 1998, forty-nine income tax treaties had been entered between the United States and various foreign countries. Income tax treaties purport to serve two main purposes. First, treaties supposedly mitigate or eliminate potential double taxation by providing consistent rules specifically governing the taxation of income items...

Comment

The Tax Implications of Catching Mark McGwire's 62nd Home Run Ball

Darren Heil

On September 9, 1998, the Service issued News Release 98-56, stating that the person who caught Mark McGwire's 62nd home run ball would not be subject to either income tax on catching the ball or gift tax on immediately returning the ball to McGwire. The Service's position compared the situation to that of a person who declines a prize or returns unsolicited merchandise. ...

Notes

Lawsuit Proceeds Were Ordinary Income: Nahey v. Commissioner

Neil Barr

In Nahey v. Commissioner, the Tax Court held that payments received by an S corporation pursuant to the settlement of a lawsuit, the rights to which were acquired in a leveraged buy-out of a target corporation's assets, did not meet the "sale or exchange" requirement for capital gain treatment and therefore were taxable as ordinary income. ...

Grant of Easement in Family Farm Triggers Section 2032A Recapture Tax: Estate of Gibbs v. United States

Joy M. Hodge

In Estate of Gibbs v. United States, the U.S. Court of Appeals for the Third Circuit held that the grant of a development easement to the State of New Jersey constituted a disposition of an interest in the taxpayer's family farm and triggered a recapture of estate taxes under section 2032A. Gibbs is the first published decision to construe the "disposes of any interest" language in section 2032A(c)(1)(A). ...

Taxpayer Was Entitled to Nonrecognition of Gain Under Section 1035 on the Partial Exchange of an Annuity: Conway v. Commissioner

Shannon C. Ledford

In Conway v. Commissioner, the Tax Court held that the transfer of a portion of an annuity contract into another annuity contract, with the original annuity surviving, qualifies under section 1035 as a nontaxable annuity-for-annuity exchange. The court reasoned that the transfer of funds from the old annuity account to the new account was direct...

Former Member of a Controlled Group Can Deduct Loss on an Intercompany Sale: Turner Broadcasting System, Inc. v. Commissioner

Victor Ng

In Turner Broadcasting System, Inc. v. Commissioner, a target corporation was acquired and simultaneously sold stock at a loss to the group that formerly controlled the target. The government challenged the loss under sections 311 and 267(f). Relying on Esmark v. Commissioner, the Tax Court allowed the loss. ...

Equitable Tolling Applies to Section 6532(c) in Third-Party Wrongful Levy Actions: Becton Dickinson & Co. v. Wolckenhauer

K. David Phan

In Becton Dickinson & Co. v. Wolckenhauer, the U.S. District Court for the District of New Jersey held that the section 6532(c) statute of limitations for bringing a third-party wrongful levy claim could be equitably tolled, although the court refused to apply tolling because of the plaintiff's failure to exercise due diligence. ...

Fair Market Value of Appreciated Property Distribution to Shareholders Determined Based on Form of Distribution Out of Corporation, Not on Form Received by Shareholders: Pope & Talbot, Inc. v. Commissioner

Gary F. Stellato

In Pope & Talbot, Inc, v. Commissioner, the Ninth Circuit held that the corporate taxpayer's gain on the distribution of appreciated property to a newly formed limited partnership, which then distributed limited partnership interests pro rata to the corporation's shareholders, was determined by reference to the value of the appreciated property...

Important Developments During the Year

ABA Section of Taxation

Tax Section Committee Important Developments Reports.

Index

Index to Volume 52

ABA Section of Taxation

This index includes articles, committee reports, and student notes that appear in volume 52 of The Tax Lawyer.

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Vol. 52, No. 4 - Summer 1999

The Tax Lawyer, Summer 1999

Articles

Are Separate Liability Losses Separate for Consolidated Groups?

The A.L.I. Tax Treaty Study-A Critique and A Modest Proposal

Comment

The Tax Implications of Catching Mark McGwire's 62nd Home Run Ball

Notes

Lawsuit Proceeds Were Ordinary Income: Nahey v. Commissioner

Grant of Easement in Family Farm Triggers Section 2032A Recapture Tax: Estate of Gibbs v. United States

Taxpayer Was Entitled to Nonrecognition of Gain Under Section 1035 on the Partial Exchange of an Annuity: Conway v. Commissioner

Former Member of a Controlled Group Can Deduct Loss on an Intercompany Sale: Turner Broadcasting System, Inc. v. Commissioner

Equitable Tolling Applies to Section 6532(c) in Third-Party Wrongful Levy Actions: Becton Dickinson & Co. v. Wolckenhauer

Fair Market Value of Appreciated Property Distribution to Shareholders Determined Based on Form of Distribution Out of Corporation, Not on Form Received by Shareholders: Pope & Talbot, Inc. v. Commissioner

Important Developments During the Year

Important Developments During the Year

Index

Index to Volume 52

The Tax Lawyer

Subscribing

ABA Resources

The ABA

Connect

Renew Your ABA Membership

American Bar Association TM American Bar Association

Vol. 52, No. 4 - Summer 1999

The Tax Lawyer, Summer 1999

Articles

Are Separate Liability Losses Separate for Consolidated Groups?

The A.L.I. Tax Treaty Study-A Critique and A Modest Proposal

Comment

The Tax Implications of Catching Mark McGwire's 62nd Home Run Ball

Notes

Lawsuit Proceeds Were Ordinary Income: Nahey v. Commissioner

Grant of Easement in Family Farm Triggers Section 2032A Recapture Tax: Estate of Gibbs v. United States

Taxpayer Was Entitled to Nonrecognition of Gain Under Section 1035 on the Partial Exchange of an Annuity: Conway v. Commissioner

Former Member of a Controlled Group Can Deduct Loss on an Intercompany Sale: Turner Broadcasting System, Inc. v. Commissioner

Equitable Tolling Applies to Section 6532(c) in Third-Party Wrongful Levy Actions: Becton Dickinson & Co. v. Wolckenhauer

Fair Market Value of Appreciated Property Distribution to Shareholders Determined Based on Form of Distribution Out of Corporation, Not on Form Received by Shareholders: Pope & Talbot, Inc. v. Commissioner

Important Developments During the Year

Important Developments During the Year

Index

Index to Volume 52

The Tax Lawyer

Subscribing

ABA Resources

The ABA

Connect