User:JD Caselaw/Basic Federal Income Taxation (Andrews)

=Basic Federal Income Taxation=

Andrews, Wiedenbeck FIFTH - 2009
full table of contents is here

Chapter 1 -- Introduction
A. In General B. Procedure and Administration
 * 1. The Internal Revenue Service
 * 2. Annual Returns
 * 3. Investigation, Assessment, and Collection of Deficiencies
 * 4. Refund Procedure
 * 5. The Tax Court
 * 6. Appellate Review
 * 7. Statutes of Limitations
 * 8. Interest, Penalties, and Costs
 * 9. Withholding and Estimated Taxes

C. Constitutional Background D. Sources of Federal Income Tax Law E. A Glossary of Basic Terms and Issues Bibliography

Chapter 2 -- Income in Kind
A. Noncash Receipts in General
 * Old Colony Trust Co. v. Commissioner
 * Arthur Benaglia
 * Reginald Turner
 * Haverly v. United States

B. Statutory Exclusions
 * 1. Meals and Lodging: §119
 * Commissioner v. Kowalski
 * Sibla v. Commissioner
 * 2. Certain Other Fringe Benefits: §132
 * Fringe Benefits Provisions [new §§132 and 117(d)]

C. Imputed Income
 * 1. Owner-Occupied Housing
 * 2. Other Consumer Durables
 * 3. Household Services
 * 4. Leisure
 * 5. Borderlines

D. Alternative Formulations E. Deductions F. Microeconomic Effects G. Taxing Employers in Lieu of Employees
 * 1. Withholding
 * 2. Other Possibilities

H. Other Items

Chapter 3 -- Compensation for Losses
A. Damage Payments (In General)
 * Edward H. Clark
 * Raytheon Production Corp. v. Commissioner
 * Commissioner v. Glenshaw Glass Co.

B. Personal Injuries
 * 1. In General
 * 2. Nonphysical Injuries and Nonphysical Sickness
 * Revenue Ruling 74-77
 * Murphy v. Internal Revenue Service
 * 3. Punitive Damages

C. Insurance
 * 1. Medical Insurance
 * 2. Deducting Extraordinary Medical Expenses (Self-Insurance)
 * Ochs v. Commissioner
 * 3. Disability Insurance
 * 4. Life Insurance

D. Previously Deducted Losses
 * 1. Annual Accounting
 * Burnet v. Sanford & Brooks Co.
 * 2. Tax-Benefit Limitations
 * Dobson v. Commissioner
 * 3. The Inclusionary Side of the Tax-Benefit Rule

Chapter 4 -- Gifts and Kindred Items
A. Income Interests
 * Irwin v. Gavit
 * Commissioner v. Early

B. Appreciated Property
 * 1. Inter Vivos Gifts: §1015
 * Taft v. Bowers
 * 2. Property Acquired from Decedents: §§1014, 1022, & 691

C. Gratuitous Transfers Outside the Family
 * 1. Prizes and Awards
 * Pauline C. Washburn
 * Paul V. Hornung
 * Maurice M. Wills
 * 2. Scholarships and Fellowship Grants
 * 3. Commercial and Compensatory Gifts
 * Commissioner v. Duberstein
 * Stanton v. United States
 * United States v. Kaiser
 * Revenue Ruling 61-136
 * Estate of Sydney Carter v. Commissioner
 * 4. Social Insurance and Welfare Payments

Chapter 5 -- Capital Appreciation
A. Unrealized Gains
 * Eisner v. Macomber

B. Time Value of Money
 * 1. Interest
 * 2. Present Discounted Value
 * 3. After-Tax Returns
 * 4. Effective Tax Rates
 * 5. Tax Deferral as a Source of Capital
 * 6. Fruits and Trees
 * 7. The Equivalence of Tax Deferral and Yield Exemption

C. Realization
 * 1. Leasehold Improvements
 * Helvering v. Bruun
 * 2. Mortgage Participation Exchanges
 * Cottage Savings Assn. v. Commissioner
 * 3. Constructive Sales

D. Nonrecognition Exchanges
 * 1. Like-Kind Exchanges
 * Alderson v. Commissioner
 * Revenue Ruling 79-143
 * Jordan Marsh Co. v. Commissioner
 * 2. Nonrecognition on Dispositions for Cash
 * 3. Corporate Reorganizations and Transfers to Controlled Corporations

E. Deferred and Contingent Payment Sales
 * Bernice Patton Testamentary Trust v. United States

F. Capital Gains G. Inflation
 * 1. Bracket Creep
 * 2. Income Mismeasurement

H. Taxing Consumption Instead of Total Accretion

Chapter 6 -- Return of Capital and Timing Issues
A. Return of Capital
 * 1. Timing Alternatives
 * Fairfield Plaza, Inc. v. Commissioner
 * Revenue Ruling 70-510
 * 2. Capital Expenditures, Depreciation, and Loss Deductions

B. Annuity Contracts
 * 1. Life Annuities
 * 2. Deferred Annuities [§72]

C. Cash Method Accounting and Its Limits
 * 1. Constructive Receipt
 * Revenue Ruling 60-31
 * 2. Inclusion in Advance of Receipt: Debt Instruments

D. Accrual Method Accounting and Its Limits
 * 1. Prepaid Income
 * American Automobile Ass'n. v. United States
 * Revenue Procedure 2004-34
 * 2. Security Deposits
 * Commissioner v. Indianapolis Power & Light Co.
 * 3. Inventories
 * Thor Power Tool Co. v. Commissioner
 * 4. Accruing Future Expenses
 * United States v. General Dynamics Corp.
 * Premature Accruals [§461(h)]

E. Inconsistent Methods and Matching
 * 1. Related Party Transactions
 * Treatment of Certain Related Party Transactions [§267]
 * 2. Inconsistency Between Years
 * a. Erroneous Treatment in Closed Year
 * b. Changes in Accounting Method

F. Compensating Employees
 * 1. Deferred Compensation
 * Albertson's, Inc. v. Commissioner
 * 2. Stock Options and Restricted Property
 * Commissioner v. LoBue
 * Alves v. Commissioner

Chapter 7 -- Receipts Subject to Offsetting Liabilities
A. Cancellation of Indebtedness
 * United States v. Kirby Lumber Co.
 * Bankruptcy Tax Act of 1980
 * David Zarin

B. Claim of Right
 * North American Oil Consolidated v. Burnet
 * United States v. Lewis
 * Alcoa, Inc. v. United States

C. Embezzled Funds
 * James v. United States
 * McKinney v. United States

D. Nonrecourse Borrowing
 * Crane v. Commissioner
 * Parker v. Delaney
 * 1. Inadequately Secured Nonrecourse Debt
 * Commissioner v. Tufts
 * Revenue Ruling 91-31
 * 2. Mortgaging Out
 * Woodsam Associates, Inc. v. Commissioner
 * 3. Gifts of Encumbered Property
 * Estate of Levine v. Commissioner
 * Diedrich v. Commissioner

Chapter 8 -- Tax Expenditures: State and Municipal Bond Interest
A. The Exclusion of Interest on State and Local Obligations
 * 1. Constitutional Considerations
 * South Carolina v. Baker
 * 2. The Subsidy to Issuers of Tax-Exempt Obligations
 * Municipal Taxable Bond Alternative Bill of 1976
 * 3. Tax-Exempt Borrowing to Finance Private Activities
 * Tax-Exempt Bonds

B. Tax Expenditures in General
 * Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2009
 * Rethinking Tax Expenditures

C. Concepts of Income

Chapter 9 -- Deductions, Credits, and Computation of Tax
A. Adjusted Gross Income
 * 1. Costs Incurred in Carrying on a Business (Other than Employment)
 * 2. Other Nonitemized (Above-the-Line) Deductions

B. Personal Exemptions and the Standard Deduction C. Itemized Deductions D. Miscellaneous Itemized Deductions E. Applying the Rate Schedules F. Credits G. Additional Taxes

Chapter 10 -- Interest, Taxes, and Casualty Losses (Home Ownership)
A. Interest
 * 1. What Is Interest? §163(a)
 * Knetsch v. United States
 * Goldstein v. Commissioner
 * 2. Debt to Purchase or Carry Tax-Exempt Obligations: §265(a)(2)
 * Revenue Procedure 72-18
 * 3. Investment Interest
 * Estate of Yaeger v. Commissioner
 * 4. Home Mortgage and Other Personal Interest
 * White, Proper Income Tax Treatment of Deductions for Personal Expense

B. Taxes
 * Revenue Ruling 79-180

C. Homeowners
 * 1. Distortion Produced by the Deductions
 * 2. Exclusion of Imputed Rental Value
 * Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2007
 * President's Advisory Panel on Tax Reform, Simple, Fair and Pro-Growth

D. Casualty Losses
 * William H. Carpenter

Chapter 11 -- Charitable Contributions and Tax Exemption
A. Qualified Organizations
 * Regan v. Taxation with Representation of Washington
 * Bob Jones University v. United States

B. Unrelated Business Income
 * United States v. American Bar Endowment

C. What Is a Contribution?
 * Dowell v. United States

D. Appreciated Property
 * Hilla Rebay

Chapter 12 -- Personal, Living, or Family Expenses
A. Childcare
 * Henry C. Smith

B. Clothing
 * Pevsner v. Commissioner

C. Traveling: §162(a)(2)
 * 1. Away
 * United States v. Correll

2. From Home
 * Commissioner v. Flowers
 * Revenue Ruling 75-432
 * Hantzis v. Commissioner

D. Travel and Entertainment
 * Rudolph v. United States
 * Sanitary Farms Dairy, Inc.
 * Moss v. Commissioner
 * Cohan v. Commissioner
 * 1. The 1962 Legislation
 * 2. The 1986 Legislation
 * Percentage Reduction for Meals & Entertainment

E. Activities Not for Profit (Hobbies)
 * Bessenyey v. Commissioner

F. Housing
 * 1. Loss on Sale
 * Weir v. Commissioner
 * 2. Rental Losses
 * 3. Home Offices
 * Drucker v. Commissioner
 * Commissioner v. Soliman

G. Marital Litigation]]
 * United States v. Gilmore
 * United States v. Patrick
 * Hunter v. United States
 * Ruth K. Wild

H. Education and Training
 * 1. Business Expense Deduction
 * Jorgensen v. Commissioner
 * 2. Tax Benefits for Education

Chapter 13 -- Business and Investment Expenses
A. Ordinary and Necessary
 * Welch v. Helvering

B. Public Policy Limitations
 * Commissioner v. Tellier
 * Raymond Mazzei

C. Capital Expenditures
 * Mt. Morris Drive-In Theatre Co.
 * Mt. Morris Drive-In Theatre Co. v. Commissioner
 * Commissioner v. Idaho Power Co.
 * INDOPCO, Inc. v. Commissioner

D. A Reasonable Allowance for Salaries
 * Patton v. Commissioner

E. Carrying on Any Trade or Business
 * Estate of Rockefeller v. Commissioner

Chapter 14 -- Losses
A. In General: §165
 * United States v. S.S. White Dental Manufacturing Co.

B. Wash Sales and Transactions Among Related Parties
 * McWilliams v. Commissioner

C. Capital Losses: §1211
 * O. L. Burnett

D. Section 1231
 * 1. Property Used in a Trade or Business
 * 2. Involuntary Conversions
 * 3. Statutory Structure and Interpretation

E. Bad Debts
 * Whipple v. Commissioner

Chapter 15 -- Capital Cost Recovery
A. What Is Depreciable
 * 1. Antique Musical Instruments
 * Richard L. Simon
 * 2. Land and Improvements
 * World Publishing Co. v. Commissioner
 * 3. Goodwill and Other Intangibles
 * Newark Morning Ledger Co. v. United States
 * 4. Section 197
 * Amortization of Goodwill and Certain Other Intangibles

B. Rates and Methods
 * 1. The Straight-Line Method
 * 2. Declining Balance Methods
 * 3. Useful Lives
 * 4. Optional Expensing
 * 5. Alternative Depreciation -- §168(g)
 * 6. Purposes for Setting Rates and Methods

C. The Economics of Capital Cost Allowances
 * 1. Complete Acceleration, or Expensing
 * 2. No Acceleration -- Economic Depreciation
 * 3. Other Cases

D. Other Investment Stimuli E. Disposition of Depreciable Property: Recapture or Conversion F. Depletion of Mineral Deposits

Chapter 16 -- Leverage, Leasing, and Tax Shelter Limitations
A. Leverage
 * 1. Overvaluation
 * Estate of Franklin v. Commissioner
 * Pleasant Summit Land Corp. v. Commissioner
 * 2. The At-Risk Limitation
 * 3. The Economics of Leverage and Taxes

B. Leasing
 * 1. Real Estate
 * Carol W. Hilton
 * 2. Machinery and Equipment
 * Objective Guidelines Used in Structuring Transactions
 * 3. Leasing to Tax-Exempt Entities
 * Reform of Tax Treatment of Certain Leasing Arrangements

C. The Passive Activity Loss Limitation
 * 1. Passive Activities
 * 2. Disposition of Interests
 * 3. Activities
 * 4. Portfolio and Earned Income
 * 5. Rental and Oil and Gas Activities

D. The Alternative Minimum Tax
 * Present Law and Background Relating to the Individual Alternative Minimum Tax

E. Corporate Tax Shelters

Chapter 17 -- Taxation and the Family
A. Interspousal Income Attribution
 * 1. First Principles
 * Lucas v. Earl
 * Poe v. Seaborn
 * 2. Split Income and Joint Returns

B. The Marriage Bonus and the Marriage Penalty
 * 1. Constitutionality of the Marriage Penalty
 * Mapes v. United States
 * 2. Legislative Relief
 * Repeal Two-Earner Deduction
 * 3. Self-Help
 * Boyter v. Commissioner

C. Support, Gift, or Compensation?
 * United States v. Harris

D. Children and Dependents
 * Adjust Tax Rate on Unearned Income of Minor Children

E. Separation and Divorce
 * 1. Support Payments
 * Bernatschke v. United States
 * 2. Property Transfers
 * United States v. Davis
 * Farid-es-Sultaneh v. Commissioner
 * Transfer of Property Between Spouses or Incident to Divorce [§1041]

Chapter 18 -- Investment Income
A. The Basic Supreme Court Cases
 * Corliss v. Bowers
 * Douglas v. Willcuts
 * Burnet v. Wells
 * Blair v. Commissioner
 * Helvering v. Clifford
 * Helvering v. Horst
 * Helvering v. Eubank

B. Statutory Rules for Nongrantor Trusts
 * 1. Simple Trusts and Distributable Net Income
 * 2. Complex Trusts and the Tier System
 * 3. Accumulation Distributions
 * 4. Fiscal Years

C. Grantor Trusts D. Interest-Free Loans
 * Below-Market and Interest-Free Loans [§7872]

Chapter 19 -- Capital Gains
A. The Statutory Scheme
 * 1. The Deduction for Capital Gains
 * 2. Maximum Rates for Capital Gains
 * 3. Capital Losses
 * 4. Short-term Capital Gains (and Losses)
 * 5. Section 1231
 * 6. Definitional Problems -- Sale or Exchange
 * 7. Definitional Problems -- Capital Assets
 * 8. Depreciation Recapture
 * 9. Qualified Dividends
 * 10. The Multiple Rate Ceilings in §1(h)

B. The Quest for a Concept
 * 1. Sale of a Business
 * Williams v. McGowan
 * 2. A Temporary Taking
 * Commissioner v. Gillette Motor Transport, Inc.
 * 3. Discounted Notes and Bonds
 * United States v. Midland-Ross Corp.
 * 4. Purchased Remainder Interests
 * Jones v. Commissioner

C. Property Held Primarily for Sale to Customers
 * Curtis Co. v. Commissioner
 * Malat v. Riddell

D. Reasons for Preferential Treatment of Capital Gains

Chapter 20 -- Capital Losses
A. The Arrowsmith Doctrine
 * Arrowsmith v. Commissioner

B. The Corn Products Doctrine
 * Corn Products Refining Co. v. Commissioner
 * Arkansas Best Corporation v. Commissioner

Chapter 21 -- Future Income Streams
A. Receipt of a Lump-sum Payment for a Future Income Stream
 * Hort v. Commissioner
 * McAllister v. Commissioner
 * Commissioner v. P.G. Lake, Inc.

B. Receipt of Payments out of a Future Income Stream
 * Commissioner v. Carter
 * Commissioner v. Brown
 * Stern v. United States
 * Busse v. Commissioner
 * Commissioner v. Ferrer

Appendix -- Rates of Return and Effective Rates of Tax on Investments Table of Cases Table of Statutes Table of Treasury Regulations, Revenue Rulings and Procedures, and Miscellaneous IRS Pronouncements