Because many foreign jurisdictions now have merger statutes that operate like those of the states, under which all assets and liabilities move by operation of law, the change in the definition of an A reorganization now allows transactions effected pursuant to these statutes to qualify as
statutory mergers or consolidations for Sec.
Even if only a subcomponent of a subcomponent of a finished product constitutes an item, the shrinkback rule will allow a portion of the receipts from the sale of the finished product that includes the subcomponent to qualify as
To comply with the new rules (and thereby continue to qualify as
cafeteria plans), plan documents, administrative procedures and employee communications must provide for,the revocation and election of benefits based on these changes in status.
For example, a company with a subsidiary in Japan, with a net investment balance of $100 million and yen as the functional currency, may also expect yen-denominated export sales unrelated to the subsidiary -- sales that don't qualify as
a firm commitment or as an anticipated transaction.
Any interest in a business other than a bank or domestic building and loan association if more than 35% of its gross income in the year of the decedent's death would qualify as
personal holding company income (dividends, interest, royalties and other investment-type income pursuant to IRC section 543(a)).
If an activity does not qualify as
research, why should the agent expend the time and effort (and require the taxpayer to expend the time and effort) auditing the precise numbers?
Under these circumstances, if J elects to treat debt 1 as not secured by a qualified residence, the interest remains frilly deductible, and all of debt 2 will qualify as
home-equity debt, fully deductible as QRI; see Exhibit 1 on p.
The article first reviews the general categories of expenditures that qualify as
"research or experimental" for purposes of both section 174 and section 41.
Thereafter, the loan must qualify as
home equity debt or home acquisition debt.
Issue: Do these reimbursements qualify as
educational assistance under the company's qualified EAP?
To avoid many of the burdensome requirements of the Employee Retirement Income Security Act of 1974 (ERISA), a SERP must qualify as
a "top-hat" plan--that is, a plan that is unfunded and maintained by the employer primarily to provide deferred compensation to a select group of management or highly compensated employees.
Expenditures incurred after the point that the product or property (or component of the product or property) meets its basic design spedifications related to function and performance level generally will not qualify as
research and experimental expenditures under section 174 unless the expenditures relate to modifications to the basic design specifications for the purpose of curing significant defects in design, obtaining significant cost reductions or achieving significantly enhanced function or performance level.