IRS concedes the wrap-around fight, and a new planning strategy opens up

Article Abstract:

The IRS appears to have accepted wrap-around financing as a legitimate method of deferring taxes. The wrapping technique is analyzed, and situations where it can be used effectively are discussed. Properly structured wrap-around debt can be attractive in situations where liabilities exceed basis, and can be used to avoid boot subject to gain recognition in like-kind exchanges. Wrap-around financing is also attractive with the prospect of capital gain rate decline, and can be useful even without tax savings when the current interest rate exceeds that of the underlying indebtedness.

Management, Laws, regulations and rules, United States. Internal Revenue Service, Deferred tax (Accounting)

---

Impact of changed depreciation rules and repealed investment credit on planning

Article Abstract:

Under the Tax Reform Act of 1986, deductions under the new modified accelerated depreciation system have generally been stretched out. Some larger amounts may be claimed earlier. The applicable recovery period and method under the new depreciation rules are described. Although the investment tax credit has been repealed by the Tax Reform Act, certain exceptions are allowed under transition rules.

Methods, Tax accounting, Accounting and auditing, Accelerated depreciation

---

Similar abstracts:

• Abstracts: Gain deferrals and LBOs are only two areas where tax planning is affected by Code changes. Guidelines for avoiding publicly traded partnership status issued by the IRS
• Abstracts: Expecting the worst: disaster recovery and contingency planning. Information technology and the chartered accountant in Scotland
• Abstracts: Performance differences between the Wrigley-Rumelt strategic categories. On 'dominant logic', relatedness and the link between diversity and performance
• Abstracts: On choosing the appropriate measure of association when analyzing rating scale data. Analyzing interpersonal communications in industrial marketing negotiations
• Abstracts: An asset-pricing theory unifying the CAPM and APT. Institutional ownership and changes in the S&P 500. An alternative testable form of the consumption CAPM

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.