Charitable contributions of depreciated capital assets: AMT may change the conventional planning wisdom

Article Abstract:

Taxpayers who are subject to alternative minimum tax (AMT) preferences for charitable donations must evaluate traditional planning methods under IRC section 57(a)(6) for depreciated capital assets. For example, the planning options available for an AMT taxpayer who donates both DEP stock and a painting in the same fiscal year can generate significantly different tax consequences depending on the circumstances. Five planning techniques are discussed of which four generate equal tax liabilities but only donating the stock and painting directly to charity is beneficial in all situations.

Donations, Income tax, Minimum tax, Charitable contributions, Charitable donations

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Reasonable compensation and the new burden of proof rules

Article Abstract:

The shift in the burden of proof to the IRS instituted by the IRS Restructuring and Reform Act of 1998 may make it easier for businesses to overcome IRS challenges to tax deductions for highly-compensated executives. Litigation on the issue has resulted in an adequate amount of case law which can be reviewed for standards of reasonableness. Avoidance of litigation by planning is advisable with methods such as documentation, review of industry standards, and detailed compensation agreements.

Public Finance Activities, Corporate Tax Deductions & Exemptions, Corporate Tax Administration, Compensation and benefits, Corporate taxes, Tax administration, Executives, Executive compensation, Burden of proof, Tax appeals

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Capitalization of investment advisory fees: can the case be made?

Article Abstract:

The authors discuss the legal possibilities of capitalizing the expenditure of investments advisory service fees based on the tax treatments of similar fees and commissions.

Investment advice, Investment Advisory Services, Financial services industry, Financial services, Prices and rates, Investment advisers

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