President Joe Biden’s Proposed Tax Policy for Individuals

INTRODUCTION In a prior article, Charles J. Allen previously discussed the tax plans of the democratic presidential candidates, while Josh Sage discussed some of Biden’s potential changes here. With the Associated Press calling the presidential race for former vice president Joe Biden on November 7th, time is running short for many taxpayers to take advantage…
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State Income Tax of Trusts and Estates – Late 2020 Update

Introduction A couple of years ago, I wrote about the state income taxation of trusts.[1] Since that time, there have been some significant developments relating to the issues raised in that writing. Primary among those developments include the United States Supreme Court decision in the Kaestner[2] case and the United States Supreme Court’s decision to…
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Ninth Circuit says Nice Try on Passive Rental Activities

Introduction The U.S. Court of Appeals for the Ninth Circuit recently affirmed a District Court’s ruling against a married couple who claimed their losses related to three vacation properties were not limited under the passive activity loss rules of IRC § 469.[1] The couple argued that the management company responsible for renting the property to…
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Lothringer and Alter Ego

A recent case shows how a shareholder and corporation, being considered alter egos, can cause unintended consequences. In Lothringer,[1]a corporate shareholder’s individual property was subject to enforced collection action by the IRS to satisfy corporate tax liabilities.[2] The court’s finding that the corporation was the shareholder’s alter ego allowed the IRS to hold the shareholder…
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Gifting Appreciated Stock Before Redemption – Dickinson

Introduction Generally, a taxpayer may deduct the fair market value of appreciated property donated to a qualified charitable organization.[1] This provision expands the benefits available to taxpayers with respect to charitable deductions. The result, in effect, is that a taxpayer may gift an appreciated asset in lieu of selling the asset, paying tax, and then…
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Non-profit Corporation Denied S Corporation Election

In a recent Tax Court opinion, the Court granted the IRS’ motion for summary judgment holding that a state law Nonprofit corporation could not election to be treated as S corporation for federal income tax purposes.[1] Clinton Deckard attempted to make an S election for Waterfront Fashion Week, Inc., a Nonprofit corporation organized under the…
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Devin Mills Joins Edmondson Sage Allen, PLLC

As of September 14, 2020, Devin Mills joins Edmondson Sage Allen, PLLC as an associate attorney. Prior to working at Edmondson Sage Allen, PLLC, Devin was an associate practicing in tax and estate planning with Baker Donelson in its Jackson, Mississippi office. Devin received his law degree from the University of Mississippi and completed his…
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The Benefits of a Lifetime CLAT

Anyone looking outside their window (or watching TV) recently knows that we are in a volatile time. Among other things, current volatility results from the ongoing COVID-19 pandemic, an uncertain economy,[1] and upcoming elections. The effects of this include large amounts of government spending,[2] low interest rates,[3] and a reduction of the value of a…
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The Swing of the Tax Pendulum and Planning Considerations

Here we are coming upon the fourth anniversary of the one of the most shocking nights of our country since perhaps the Battle of Saratoga and one of the largest cash outlays by our government ever known by means of the CARES Act. On the heels of these events Democrats are setting the stage to…
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