Bus. 225H - Taxation of Property Transactions

Professor Annette Nellen

Early Spring 2011

Course Syllabus and Research Questions

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

Week 1 Reading - Introduction to the course and topic; definitions and their relevance

• Academic Integrity and Avoiding Plagiarism

• Week 1 Reader + the following items

• IRS Publication 946, How to Depreciate Property - see the Rev. Proc. 87-56 tables starting on page 96

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

Week 2 Reading - Basis and Capitalization

• Week 2 Reader + the following items 

• Indopco v. Commissioner, 503 US 79 (1992)

• Crane v. Commissioner, 331 US 1 (1947)

• “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 "news"

• Reference: IRS Audit Technique Guide on Repair v Capitalization (Nov. 2010) - here

Week 3 Reading - Acquisitions/Dispositions/Other Transfers – Part 1

• Week 3 Reader

• Commissioner v. Tufts, 461 US 300 (1983)

• Form 4797 and Instructions

Week 4 Reading - Effects of Debt on Property Transactions

• Week 4 Reader

• 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 (reference only)

• FTB, Foreclosures

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

• FTB, Foreclosures and Short Sales

Week 5 Reading - Capital Assets + Intangibles

• Week 5 Reader - Capital Assets + the following items  

  • 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

• Week 5 Reader - Intangibles + the following item

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

Week 6 Reading - Acquisitions/Dispositions/Other Transfers – Part 2

• Week 6 Reader + the following items

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

  • Form 8594 and Instructions  [skim]

  • Form 6252 (installment sales)  [skim]

Weeks 7 & 8 Reading - Special Rules on Exchanges, Conversions and Sales

• Week 7 & 8 Reader + the following items

• 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

• IRS Coordinated Issue Paper on Exchange of FCC Licenses (4/07)

Week 9 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, California's Tax System: A Primer (4/07) - pages 9, 56-60

  • BOE Pub 29, California Property Tax: An Overview (9/05) - skim

Professor Annette Nellen                                                                                                                           January 30, 2011