In essence, Bankers Trust argued that the board's liens did not survive the foreclosure sale and are extinguished if there are no excess proceeds
from the sale to pay the past due common charges due.
Because the noninsured and the insured shareholders were also partners in a partnership, the Service ruled that an exception to the transfer-for-value rule applied; therefore, the insurance proceeds
were exempt from income tax.
Since the beneficiary can dispose of the remaining proceeds
as she wishes through her will, she is deemed to have a general power of appointment over the proceeds
(see Q 666).
Claims where only the net proceeds
of the litigation are reportable as gross income.
Bassuk said, "The use of auction rate low-floater bonds, rather than the more traditional variable rate low-floater bonds, enabled the Borrower to achieve greater proceeds
at a lower interest rate.
He received financial benefit from the loan by using proceeds
of the loan for closing costs on his own personal residence.
Generally, when the settlement agreement expressly allocates the settlement proceeds
among various claims, the allocation is binding for tax purposes.
The first stage involves the placement of proceeds
derived from illegal activities--the movement of proceeds
, frequently currency--from the scene of the crime to a place, or into a form, less suspicious and more convenient for the criminal.
109, the IRS determined that a distributing corporation could liquidate a wholly owned subsidiary and distribute the subsidiary's business, or the subsidiary could sell its business and liquidate under section 332 and then the distributing corporation could distribute the sales proceeds
There is one other exception to the gross proceeds
Where the typical first mortgage provider only provides up to 70% loan-to-value financing, the mezzanine provider is willing to increase those proceeds
to 85% or 90%.