1992)], stated the rule as follows: "Funds are encumbered
only where the taxpayer is legally obligated to use the funds for a purpose other than satisfying the preexisting employment tax liability and if that legal obligation is superior to the interest of the IRS in the funds.
Lehman Brothers Holdings started using encumbered
assets to bolster cash in June 2008, when Citigroup, Inc asked for a USD2bn deposit against trades it was settling and clearing for the company.
Thus, a taxpayer can avoid gain recognition when he or she transfers property encumbered
by liabilities in excess of basis to a controlled corporation.
In an attempt to mitigate the gain recognition, Peracchi transferred to NAC, in addition to the encumbered
properties, a personal note with a face amount of $1,060,000.
54]), the Court's refusal to permit an Orthodox Jew to wear his yarmulke in the military was also wrong, since it failed to take account of the Jew's encumbered
The Xl-100 is said to be designed for the researcher who is interested in getting fast, repeatable data from an instrument that is not encumbered
by unneeded levels of complication.
This transaction enables us to reduce both our interest costs and the number of our encumbered
assets, thereby enhancing our Company's capital structure," commented Barry Lefkowitz, executive vice president and chief financial officer.
Example: B has a $40,000 adjusted basis in real property X, which has a $100,000 fair market value (FMV) and is encumbered
by a $30,000 mortgage.
The most common of these transactions are gifts of encumbered
property, net gifts and gifts of stock options.
Bob Bellamy is what most choreographers must fear: He's overweight and insecure and his dancing is encumbered
by his body; but he is honest and strong, he does his work, and breaks your heart every time.