Bus. 225H - Taxation of Property Transactions

Professor Annette Nellen

Early Spring 2013

Course Syllabus and Research Questions - access on D2L

Questions you should be able to answer by end of course - here

• Be sure to review them weekly to check your understanding of course materials and follow up with more studying if you don't know the answer

• Focus on understanding the materials. Ask yourself why a rule works the way it does (what is the logic), who it is relevant to and why, how it works, etc.

• You can get the list of questions in word (rather than pdf) on D2L

Textbook - Federal Taxation of Property Transactions by Cameron, published by Lexis-Nexis; ISBN 9781593458867.  Available in the Spartan Bookstore. You may also find it online to purchase.

Desire2Learn:  Instructions       Log-in page

List of IRC provisions pertaining to property (we will not cover all of these; the purpose of this list is to give you a sense of how these rules fit within the structure of the IRC and the range of tax rules involving property)

BNA Tax Management Portfolions - Federal and Multistate (need to enter your library card number and pin)

RIA Checkpoint

CCH Access

Session 1 (1/9/13) Reading - Introduction to the course and topic; definitions and their relevance (complete this before the January 9 class)

• Academic Integrity and Avoiding Plagiarism

• Week 1 Reader

• Textbook - pages 351-352, 359-361, 375-392

• Reference materials:

  • IRS Publication 946, How to Depreciate Property - see the Rev. Proc. 87-56 tables starting on page 103

  • Treasury Department, Report to The Congress on Depreciation Recovery Periods and Methods, 7/00; read pages 2 - 3 of the report

Session 2 (1/16/13) Reading - Basis and Capitalization

• Textbook pages 305 - 332, 364-368

• Crane v. Commissioner, 331 US 1 (1947) - Textbook page 222-228

• “Tangible Guidance On Intangibles – New Section 263 Regulations Provide Taxpayers With Certainty,” Business Entities, Fall 2004,  Purcell and Nellen - posted at the Desire2Learn site under "additional reading" (under Content tab)

• CCH, Briefing on Repair Regulations (Nov 2012)

Session 3 (1/19/13) Reading - Acquisitions/Dispositions/Other Transfers – Part 1

• Textbook - pages 23 - 46, 135 - 136, 721-722

• Form 4797 and Instructions

Session 4 (1/19/13) Reading - Effects of Debt on Property Transactions

• Textbook - pages 179 -181, 199 - 202, 210 - 217, 221 - 229, 235 - 241,260 - 264, 287-288, 298 - 302

• Review IRC Sections 108 and 1017 (obtain from RIA or CCH)

• IRS Publication 4681, Cancelled Debts, Foreclosures, Repossessions and Abandonments (for individuals) (reference only; this is a layman's explanation of several topics in Week 4 reading)

• Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)  (skim)

• IRS Info on Home Foreclosure and Debt Cancellation (skim)

• FTB, Foreclosures

  • Summary/review of interaction of CA and federal rules - FTB February 2010 Newsletter (pages 9 - 11)

• FTB, Foreclosures and Short Sales  (skim)

Session 5 (1/23/12) Reading - Capital Assets + Intangibles 

• Capital assets

  Textbook - pages 69 - 80, 98 - 133

  • IRS Tax Tips - Ten Important Facts About Capital Gains and Losses

  • IRC Provisions on Capital Assets and Gains (for reference, but be sure to read Section 1221)

    Corn Products Refining Co. v. Commissioner, 350 U.S. 46 (1955)

  • Arkansas Best Corp. v. Commissioner, 485 U.S. 212 (1988)

  • IRS Information Letter 2008-0042 - ordinary income versus capital gain income

  • 1040 Schedule D and Instructions

  • Form 8949 and instructions

• Intangibles - Sections 197 and 167

  Textbook - pages 428 - 440

  • IRC & Regulations (excerpt) on Intangibles  [reference]

Session 6 (1/30/13) Reading - Acquisitions/Dispositions/Other Transfers – Part 2  

• Textbook  - pages 47-67, 562-568, 578-581, 843-847, 852-860, 896-897

  References:

  • IRC & Regulations (267, 453, 1038, 1060, 1091, 1239) [reference]

  • Form 8594 and Instructions 

  • Form 6252 (installment sales)

Sessions 7 (online) & 8 (2/13/13) Reading - Special Rules on Exchanges, Conversions and Sales  
     NOTE - presentation for Session 7 (Feb 6, 2013) will be online (no class meeting this night)

• Textbook - pages 451-453, 462-465, 467-469, 483-494,506-508, 533-541,544-547

• References

  • IRC Sections 121, 1031, 1033 and 1041

  • Section 121 regulations (and preambles): TD 9030 and TD 9152

  • Overview of Section 1031 like-kind exchanges from the IRS + link to Form 8824

  • FEA FAQ on 1031 exchanges

Session 9 (2/20/13) Reading - Miscellaneous Topics  

• Tax Gap Issues

  • Nellen, Property Transactions of Individuals Can Contribute to the Tax Gap, AICPA Tax Insider, 9/13/07

  • IRS, Rental Property (7/07)

  • GAO, Capital Gains Tax Gap (6/06)

  • GAO, Testimony on Tax Gap (3/07) - page 17 only

• California Property Taxes

  • LAO - Understanding California's Property Taxes (2012)

  • BOE Pub 29, California Property Tax: An Overview (Nov 2012) - skim

Session 10 (2/27/13) - Final Exam

Professor Annette Nellen                                                                                                                           January 21, 2013