Because the change is made under the majority-interest rule, no further change in tax year
(due to changes in majority members' tax years
) will be required for the two tax years
following the year of change (Sec.
Under the new law, for tax years
beginning after 2005, the Kiddie Tax applies to children not attaining age 18 before the close of the tax year
if either parent is alive at the end of that year and the child does not file a joint return for that year.
Circulation and organizational expenditures paid or incurred in tax years
beginning after 1989 must be capitalized and treated as part of the basis of the assets to which they relate.
2005-31 provides safe harbors for determining the finality of the adoption of a foreign-born child and the tax year
of finality in which to take the adoption credit or to exclude the adoption assistance income.
Generally, an S corp shareholder that is a tax-exempt entity not subject to tax on such corporation's income is disregarded in determining the corporation's ownership tax year
unless the corporation is wholly owned by that entity.
Accelerate Disallowed Expenses: Expenses that serve to nimimize the difference between book and taxable income and are unavoidable should be incurred by corporations paying AMT in a pre-1990 tax year
rather than an ACE year.
A taxpayer that has already used these provisions in the past six years (unless it is an S corporation using them in the first tax year
in which it no longer meets the ownership tax year
test described below).
Capital gain treatment for self-created musical works: At the taxpayer's election, the sale or exchange of musical compositions or copyrights in musical works created by the taxpayer's personal efforts may be treated as the sale or exchange of a capital asset, effective for sales or exchanges before 2011 in tax years
after the TIPRA's enactment date.
income tax return or a protective return for any tax year
prior to a tax year
for which a waiver is requested, or where the IRS has contacted the taxpayer concerning a failure to file U.
For example, if the amount of allocable deductions for any tax year
is less than $1 million, there is no CERT limit on the NOLs.
11, 2004 and pointed out that "A taxpayer can elect out of this new deduction for any class of property for any tax year
Reporters, editors and columnists who cover personal finance, tax preparation and consumer credit, please take note: a new federal tax payment option will be unveiled in January 2001 for the 2000 tax year