To show that he or she acted reasonably and in good faith, a taxpayer
must meet one of the five general criteria outlined in Regs.
Now, with a federal budget awash in deficits, there is little discussion in Washington about raising the IRC section 121 exclusion figures or indexing them for inflation (though President Bush's Blue Ribbon Tax Reform Panel recently recommended raising the exclusion to $300,000 for single taxpayers
and $600,000 for married ones filing jointly).
If the item of QPP is MPGE in whole by the taxpayer
in the United States, the application of the rules is relatively easy and receipts from the lease, rental, license, sale, exchange, or other disposition of the QPP will generally be considered to be DPGR, though taxpayers
will need to take into account other rules, such as those for embedded services.
Meyer noted that the IRS is flexible regarding responses to audit notices and is willing to extend extra time to taxpayers
or their representatives who request it to gather necessary information.
For hens, the CAP can be used (either before or after a lien notice is fried) to (1) challenge a refusal to withdraw the notice or to discharge or subordinate a lien or (2) prevent attachment of the lien, and (as was noted) it can be used by nominees and third parties holding taxpayer
Although the gross receipts attributable to such ancillary components (including qualified warranties were they not already excluded) typically would fall within the five-percent de minimis rule generally applicable to non-qualifying gross receipts, (25) taxpayers
should not be required to compute and maintain records to support the application of the de minimis rule in such situations at all.
1031(a)(3) requires a taxpayer
to identify qualifying exchange replacement property within 45 days after closing the sale of a relinquished property.
An individual or business taxpayer
elects a section 1033 deferral simply by omitting a gain from its return for the year it realizes that gain as a result of an involuntary conversion.
used the dollar-value, inventory price index computation (IPIC) LIFO method.
must capitalize costs to obtain, renew, renegotiate, or upgrade a membership or privilege.
in the trade or business of farming are excluded from using this notice.
Until the government issues guidance that addresses some of the issues raised by TAM 200604033, taxpayers
will be left wondering whether their existingVPFs and stock loans "work" and whether stock loans should be avoided altogether when entering into future VPFs.