4 Credits: Taxes
Tax cases and guidance can provide a key to unlocking a deep understanding of the tax law for tax professionals and also help them better serve clients in planning and structuring transactions. Join Tony Nitti and Damien Martin for their fourth annual conversational exploration of key lessons from Tony’s top ten cases of the 2022. Here’s an overview of what they cover:
- Rogerson v. Commissioner (T.C. Memo 2022-49): Tax Court sided with IRS in asserting the taxpayer materially participated in an activity under the “five of ten-year rule.”
- TAM 202229036: Taxpayers must count years qualified for material participation under the Significant Participation Test in applying the “five of ten-year” test for purposes of the material participation tests under Temp. Reg. Sec. 1.469-5T.
- IRS Chief Counsel Advice Memorandum 202151005: Providing “extra” amenities and services to tenants could subject rental income to self-employment taxes.
- Hoops LP v. Commissioner (T.C. Memo 2022-9): Tax Court sustained the IRS’s disallowance of a deduction for accrued but unpaid deferred compensation obligations by an accrual-method taxpayer who sold a basketball team.
- Milkovich v. U.S. 24 F.4th 1 (9th Circ. 2022): The 9th Circuit permitted an IRC Sec. 163 deduction related to foreclosure proceeds.
- Musselwhite (T.C. Memo 2022-57): Tax Court determined that a taxpayer’s losses on the sale of four land lots he received from his LLC were capital losses.
- Starer v. Commissioner (T.C. Memo 2022-124): Tax Court determined a married couple who were controlling shareholders of an S corporation operating agriculture and horse-breeding businesses did not properly report transfers of property made by the corporation.
- Wendy J. Mihalik v. Commissioner (T.C. Memo 2022-36): Tax Court held a retired airline pilot had to include the value of standby tickets used by relatives that were neither his spouse nor dependent children in income.
- CCA 202204007: IRS concluded a business facilitating property rentals between lessors and lessees is providing brokerage services within the meaning of IRC Sec. 1202(e)(3)(A).
- Proc. 2022-19: Guidance on six areas where taxpayers otherwise would need to seek a Private Letter Ruling.
Upon completion of this program, participants will be able to:
- Identify the key take aways from key developments in case law during 2022; and
- Recognize planning opportunities for taxpayers and pitfalls to avoid; and
- Explain the eligibility requirements for S corporations and ways to address potential deficiencies; and
- Apply the passive activity loss rules under Internal Revenue Code (IRC) Sec. 469 in light of recent developments; and
- Discuss the tax treatment of a foreclosure sale in the context of a recourse and nonrecourse loan.
January 20, 2023
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02314-23-S
IRS Federal Tax Law Credits: 4
CTEC Course Number: 2071-CE-1883
CTEC Federal Tax Law Credits: 4
CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.
CTEC Notice: California Tax Education Council DOES NOT allow partial credit, course must be taken in entirety. Western CPE has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at www.ctec.org.
Meet The Experts
Damien R. Martin, CPA, MST will be joining EY as a partner in the Private Client Services tax practice within the firm’s Financial Services Organization in January 2023. He provides tax compliance, consulting, and planning services to high-net-worth individuals, families, and fiduciaries. Damien formerly hosted Simply Tax®, a podcast dedicated to delivering practical and timely content to simplify tax challenges. His opinions and commentary on important tax issues have been quoted by Tax Notes®, Bloomberg®, and other sources.
Tony Nitti, CPA, MST is a partner in the National Tax Department of EY US, with a focus on Section 1202, as well as an adjunct professor at the graduate tax programs of the University of Denver (DU) and Golden Gate University. Tony is a prolific writer on various tax topics and is a senior contributor at Forbes, where his column has the largest following.
S Corp A-Z – Part 1 (Self Study Video)Robert “Chris” Province, CPAQAS Self-Study Video
Cryptocurrency Taxation: A Foundation for AdvisorsShehan Chandrasekera, CPAQAS Self-Study Video
California Individual Tax Hazards: 10 Strategies for Out-of-State PractitionersKaren Brosi, CFP, EAQAS Self-Study Video