Drawn from Steve Gorin’s 3rd quarter 2023 newsletter, this course will review gifts from trusts and bargain sales, when real estate or an LLC interest constitutes inventory, and selected fiduciary income tax issues regarding a trust owning S corporation stock.
Regarding charitable issues, Braen v. Commissioner, T.C. Memo. 2023-85, disallowed a bargain sale and is a primer on various substantiation issues. Also, an unreported Tax Court case was settled favorably to the taxpayer when the IRS attempted to disallow charitable contributions authorized after a trust was decanting; the judge’s pretrial order expressing support for the decanting led to the settlement.
Glade Creek Partners, LLC v. Commissioner, T.C. Memo. 2023-82, held that real estate was inventory and described how the taxpayer could have tried to avoid that result. CCA 202309015 argued that the interests in LLCs holding land were inventory under Code § 1221.
Finally, CCA 202335014 clarified an electing small business trust’s deduction of net operating losses, clarifying the scope of CCA 200734019. While we are on the topic of S corporation trust, we will discuss toggling grantor trust status when the business is sold.
California: 1.50 general
Illinois: 1.50 general
Missouri: 1.80 general
New York: 1.50 professional practice (experienced and transitional)
Texas: 1.50 general
October 31, 2023
Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you (an ‘engagement letter’).
By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and, further, even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you. Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.