Coping with the new scholarship and fellowship income exclusion limitations
Article Abstract:
The Tax Reform Act of 1986 has changed the rules regarding the tax treatment of scholarships and fellowships. The Act and related IRS regulations state that any any amount received as a qualified scholarship is excludable from gross income. A qualified scholarship is a grant received for tuition and related expenses. Grants or portions of grants used for expenses such as room and board are not excludable from gross income. Amounts of grants received for teaching, research, or the performance of other services that are a condition of the scholarship are not excludable from gross income. Qualified tuition reductions are not included in gross income.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1988
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Prompt action needed to obtain full benefits of a liquidation followed by a reincorporation
Article Abstract:
The Tax Reform Act of 1986 reduces the tax planning advantages corporate liquidations that are followed by reincorporation. Shareholders can liquidate a corporation and then reincorporate the assets in a new corporation, and the two transactions will not be treated as a single reorganization, provided the reincorporation is conducted before the end of 1987. Guidelines for structuring the transaction are presented, and rules regarding the tax treatment of Type D, E, or F reorganizations are discussed.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1987
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Mergers of corporations can take various forms each with its own tax consequences
Article Abstract:
There are both tax advantages and disadvantages to corporate mergers, depending on the type of transaction. A merger of companies circumvents the limitations of other types of acquisitions that are tax-free. The assets that are bought in a merger transaction can be transferred to one or more firms under the control of the purchasing company, according to Section 368(a)(2)(C).
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1985
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