Under this doctrine, when a lump-sum payment is received in exchange for payments that would otherwise be received at a future time as ordinary income, capital gain treatment of the lump sum is inappropriate, because the consideration was paid for the right to receive future income, not for an increase in the value of income-producing property
This facility provided the buyer the relatively rare opportunity to enter the exclusive New York City market with a stabilized income-producing property
," comments Mele.
Supreme Court denied a deduction for attorney fees to maintain control over income-producing property
a spouse demanded in a divorce.
Thus, even for an under-14 child, the tax system encourages parents to transfer income-producing property
, because the first $600 isn't taxed.
Normally, taxpayers can fully deduct casualty losses on business property or income-producing property
Giving or selling income-producing property
to children provides opportunities for family tax savings, but only if the transactions can withstand Internal Revenue Service scrutiny.
Given that a contingeny fee contract effectively confers an interest in the claim itself on the attorney, it operates more like an assignment of income-producing property
than an assignment of future income from property.
If the loss occurred with respect to business or income-producing property
, it should be an ordinary deduction as reported through Form 4797, Sales of Business Property.
In most voluntary reconveyances, foreclosures and abandonments involving income-producing property
, the outstanding debt exceeds the mortgagor's tax basis in the property.