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Mastering Income Tax
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Carolina Academic Press Mastering SeriesRussell Weaver, Series Editor
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Mastering Income Tax
second edition
Gail Levin RichmondEmerita Professor of Law
Nova Southeastern University Shepard Broad College of Law
Christopher M. PietruszkiewiczFormer Dean
Stetson University College of LawPresident
University of Evansville
Carolina Academic PressDurham, North Carolina
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Copyright © 2020Gail Levin Richmond and Christopher M. Pietruszkiewicz
All Rights Reserved.
Library of Congress Cataloging in Publication Data
Names: Richmond, Gail Levin, author. | Pietruszkiewicz, Christopher M., author.
Title: Mastering income tax / by Gail Levin Richmond, Christopher M. Pietruszkiewicz.
Description: Second edition. | Durham, North Carolina : Carolina Aca-demic Press, LLC, [2020] | Series: Carolina Academic Press Mastering Series | Includes index.
Identifiers: LCCN 2020012987 (print) | LCCN 2020012988 (ebook) | ISBN 9781531016951 (paperback) | ISBN 9781531016968 (ebook)
Subjects: LCSH: Income tax—Law and legislation—United States. | LCGFT: Textbooks.
Classification: LCC KF6369.85 .P54 2020 (print) | LCC KF6369.85 (ebook) | DDC 343.7305/2—dc23
LC record available at https://lccn.loc.gov/2020012987LC ebook record available at https://lccn.loc.gov/2020012988
Carolina Academic Press700 Kent Street
Durham, NC 27701Telephone (919) 489-7486
Fax (919) 493-5668www.cap-press.com
Printed in the United States of America
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ContentsTable of Cases xxiii
Table of Internal Revenue Code Sections xxix
Table of Regulations xlv
Table of Administrative Authorities xlix
Series Editor’s Foreword li
Preface liii
Acknowledgments lv
Chapter 1 · Introduction 3Roadmap 3A. The Federal Income Tax 3
1. Funding the Government 32. Tax Base and Rate Structure 4
a. Tax Base 4b. Rate Structure 4
3. Potential Taxpayers 54. Tax Policy 55. Surviving Constant Code Amendments 5
B. Working with the Code 61. The Initial Code Section 72. Other Code Sections 73. Inflation Adjustments, Code Amendments, and
Relevant Dates 8a. Inflation Adjustments 8b. Code Amendments and Effective Dates 9c. Expiration Dates 9
4. IRS and Judicial Interpretations 10a. IRS Guidance 10b. Judicial Action 11
vii
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5. Interpretive Doctrines 13C. Components of the Tax Computation 14
1. Gross Income 152. Deductions, Adjusted Gross Income, and Taxable Income 153. Tax Liability 16
a. Tax Rates 16b. Filing Status 17
4. Tax Credits 185. Alternative Minimum Tax 19
Checkpoints 21
Chapter 2 · Overview of Gross Income 23Roadmap 23A. Introduction 23B. Receipt of a Financial Benefit 23
1. Statutory Language 242. Undeniable Accessions to Wealth 253. Treasure Trove and Bargain Purchases 254. The Realization Principle 265. Promotional Programs 276. Borrowing 27
C. Noncash Transactions 28D. Imputed Income 29E. Topics Covered in Other Chapters 30Checkpoints 31
Chapter 3 · Income from Performing Services 33Roadmap 33A. Compensation for Services 33
1. Employee’s Gross Income 332. Fringe Benefits 353. Employer’s Deduction 36
B. Employee Achievement Awards 361. Requirements 362. Amount Excluded 373. De Minimis Fringe Benefits 394. Employer Payments for Its Own Benefit 39
C. Compensation Subject to a Substantial Risk of Forfeiture 391. Scope of Section 83 392. Transfers Covered 40
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3. Employee Does Not Elect Immediate Gross Income 424. Employee Elects Immediate Gross Income 435. Employer’s Tax Consequences 44
D. Health Care 45E. Group-Term Life Insurance 45F. Education 46
1. Potential Exclusions 462. Comparison of Exclusions 483. Other Benefits for Education Costs 48
G. Children and Other Dependents 481. Dependent Care Assistance Programs 482. Adoption Assistance Programs 50
H. Meals and Lodging 501. Section 119 502. Parsonage Allowance 533. Employer Cafeteria 54
I. Section 132 541. No-Additional-Cost Service Benefits 55
a. General Rule 55b. Qualifying as an Employee 55c. Limitations 56
2. Qualified Employee Discounts 563. Working Condition Fringe Benefits 574. De Minimis Fringe Benefits 585. Qualified Transportation Fringe Benefits 596. Other Section 132 Benefits 60
J. Miscellaneous Employment-Related Exclusions 61K. Cafeteria Plans 62Checkpoints 64
Chapter 4 · Gratuitous Transfers; Transfers Between Spouses and Former Spouses 65
Roadmap 65A. Gifts and Transfers Treated as Gifts 65
1. Definition 652. Transfers in an Employment Setting 663. Transfers Between Spouses and Former Spouses 68
B. Bequests, Devises, and Inheritances 68C. Donative Transfers Involving Income 70
1. Income Generated by Gifted Property 70
CONTENTS ix
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2. Gift of Income Produced by Property 703. Income in Respect of a Decedent 71
D. The Transferee’s Basis 711. Property Acquired by Inter Vivos Gift 71
a. General Rule 71b. Exception for Donor’s Unrealized Loss 72c. Part Gift/Part Sale Transfers 73
2. Property Acquired from a Decedent 743. Property Acquired from a Spouse or Former Spouse 76
E. The Transferor’s Tax Consequences 78Checkpoints 79
Chapter 5 · Gain and Loss: Basis and Amount Realized 81Roadmap 81A. Introduction 81B. General Rules and Terminology 82
1. Computing Gain or Loss 822. Amount Realized 823. Cost Basis 834. Adjustments to Basis 845. Gain or Loss Realized and Recognized 856. Character of Gain or Loss 85
C. Transactions Involving Debt 861. Cost 862. Amount Realized 87
D. Taxable Transactions Other than Purchases 881. Property Received as a Prize or as Compensation 882. Property Transferred in Exchange for Services 893. Property Received in an Exchange 89
E. Nonrecognition Transactions 91Checkpoints 93
Chapter 6 · Excluded Gains 95Roadmap 95A. Sale of a Principal Residence 95
1. Qualifying for the Exclusion 952. Maximum Exclusion 973. Frequency of Using the Exclusion 974. Relief Provisions 98
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a. Change in Place of Employment, Health, or Unforeseen Circumstances 98
b. Owner Becomes Incapable of Self-Care 99c. Change in Marital Status 100d. Extension of Five-Year Period 100
5. Anti-Abuse Provisions 101a. Residence Acquired in a Like-Kind Exchange 101b. Deducting Depreciation of the Residence 101c. Nonqualified Use of the Residence 101d. Dual Use of the Residence 102
6. Coordination with Other Code Provisions 103B. Sale of Qualified Small Business Stock 103Checkpoints 104
Chapter 7 · Life Insurance and Annuities 105Roadmap 105A. Life Insurance Terminology 105B. Excluded Life Insurance Proceeds 106C. Taxable Life Insurance Proceeds 108
1. Transfer for a Valuable Consideration 1082. Employer-Owned Life Insurance Contracts 1093. Proceeds Paid at a Date Later than Death 110
D. Miscellaneous Tax Consequences of Life Insurance 1111. Sale, Surrender, or Exchange of Policy 1112. Deducting Premiums Paid 1123. Borrowing Against the Cash Surrender Value 113
E. Annuities Terminology 113F. Taxation of Annuity Payments 114
1. Amounts Received as an Annuity 1142. Other Amounts Received Under the Contract 1163. Borrowing Against the Investment in the Contract 1164. Exchanging an Annuity Policy 1165. Penalties for Early Withdrawals 117
G. Critiques of Tax Treatment 1171. Life Insurance 1172. Annuities 118
Checkpoints 119
Chapter 8 · Discharge of Indebtedness 121Roadmap 121
CONTENTS xi
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A. Tax Consequences of Borrowing 121B. Early Judicial Decisions 122C. Section 108(a)(1) Exclusions 123
1. Bankruptcy and Insolvency 1232. Other Exclusions 1253. Priority of Exclusions 1264. Reduction of Tax Attributes 1265. Basis Reduction 128
D. Other Debt Discharge Exclusions 1291. Deductible Payments 1292. Purchase Money Debt Reductions 1303. Student Loans 1314. Miscellaneous Provisions 131
E. Acquisition of Debt by Related Persons 132F. Property Transfers and Debt Discharge 133Checkpoints 134
Chapter 9 · Compensation for Injuries or Sickness 135Roadmap 135A. Introduction 135B. Damages in General 136C. Payments Covered by Section 104 137
1. Workmen’s Compensation 1372. Damages for Personal Physical Injuries or Sickness 137
a. Medical Expenses 138b. Punitive Damages 139c. Lost Income 140d. Noneconomic Damages 140e. Deferred Payments 140f. Allocating Damages 141g. Litigation Expenses 143
3. Amounts Received Through Accident or Health Insurance 143D. Other Excluded Damage-Like Payments 143E. Employer-Funded Accident and Health Plans 144
1. Employer Contributions to Accident and Health Plans 1442. Benefits Received from an Employer-Funded Plan 145
Checkpoints 147
Chapter 10 · Miscellaneous Inclusions and Exclusions 149Roadmap 149
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A. Prizes and Other Awards 1491. General Rule 1492. Exceptions 150
a. Prizes and Awards Directed to Charity 150b. Olympic and Paralympic Prizes 152
3. Amount of Gross Income 152B. Scholarships 153
1. Qualified Scholarships 1532. Candidate for Degree 1543. Payments Related to Employment 1554. Scholarship Received as a Prize 155
C. Other Education Benefits 1561. U.S. Savings Bond Interest 1562. Encouraging Saving for Education Expenses 157
D. State and Local Government Activities 158E. Foreign-Source Income 160F. Alimony and Child Support 162
1. Alimony and Separate Maintenance Payments 162a. Post-2018 Instruments 162b. Pre-2019 Instruments 162c. Recapture of Excess Pre-2019 Instrument Payments 164
2. Child Support 165G. Disaster Relief Payments 166H. Additional Miscellaneous Exclusions 167
1. Statutory Exclusions 1672. General Welfare Exclusion 168
Checkpoints 169
Chapter 11 · Overview of Deductions and Credits 171Roadmap 171A. Introduction 171B. Type of Activity 171C. Tax Return Placement 172
1. Trade or Business Expenses 1732. Expenses for the Production of Income 1733. Losses Related to Sale or Exchange of Property 1734. Expenses Related to Retirement Income 1745. Expenses That Do Not Require a Business or Income-
Producing Activity 1746. Expenses Related to Litigation 174
CONTENTS xiii
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7. Miscellaneous Expenses 1758. Standard Deduction 1759. Personal Exemptions 175
D. Itemized Deductions 175E. Deductions Affected by AGI 176F. Timing and Character of Deductions 176G. Taxpayer Status 177H. Deductions Disallowed by the Alternative Minimum Tax 177I. Credits 177Checkpoints 178
Chapter 12 · Business and Income-Producing Expenses 179Roadmap 179A. Introduction 179B. Section 162 Requirements 180
1. Ordinary and Necessary 1802. Expenses Versus Capital Expenditures 181
a. Tangible Assets 181b. Intangible Assets 183c. Supplies 184
3. Trade or Business 1844. Paid or Incurred 185
C. Section 162 Expenses 1851. Reasonable Salaries 1852. Travel Away from Home 188
a. Away from Home 188b. Personal Aspects of Travel 189c. Foreign Travel 190d. Commuting Expenses 191
3. Rental Payments 1924. Educational Expenses, Seminars, and Meetings 1925. Business Meals and Gifts 1946. Job-Related Clothing 1957. Transportation Fringe Benefits 1958. Public Policy Limitations 197
a. Bribes and Kickbacks 197b. Lobbying Expenses 198c. Fines and Penalties 198d. Clayton Act Treble Damages 200e. Sexual Harassment/Discrimination NDAs 200
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f. Controlled Substances 200D. Expenses with a Business Connection 201
1. Qualified Business Income Deduction 2012. Depreciation, Depletion, and Amortization 202
a. Applicable Method, Recovery Period, and Convention 203b. Computing Declining Balance Depreciation 204c. First-Year Expensing 205d. Listed Property 206e. Depletion and Amortization 207
3. Start-Up Expenditures 2074. Moving Expenses 2085. Interest and Taxes 209
E. Significance of Employee Status 2101. Expenses Deducted in Computing AGI 2112. Phase-Outs and Deduction Limitations 211
F. Section 212 Expenses 2111. Interpretive Issues 2122. Litigation Expenses 2133. Reason for Holding Property 2134. Deduction Limitations 214
G. Expenses to Produce Tax-Exempt Income 215H. Tax Credits 215
1. Household and Dependent Care Expenses 2152. Earned Income Tax Credit 2163. Credit for Retirement Savings 2174. Foreign Tax Credit 217
Checkpoints 218
Chapter 13 · Personal Expenses 221Roadmap 221A. Introduction 221B. Deductions in Computing AGI 222
1. Alimony and Alimony Recapture 2222. Education Loan Interest 2223. Qualified Tuition and Related Expenses 2234. Contributions to Health Savings Accounts 2235. Charitable Contributions 224
C. Interest Expense 2241. Qualified Residence 2252. Acquisition and Home Equity Indebtedness 225
CONTENTS xv
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3. Mortgage Insurance 2274. Points 227
D. State, Local, and Foreign Taxes 2281. Real Property Taxes 2292. Personal Property Taxes 2303. Income Taxes 2304. Sales and Use Taxes 2315. Limitation on Deduction for Taxes 232
E. Charitable Contributions 2331. Definition 2332. Amount 234
a. Money, Other Property, and Forgone Income 234b. Bargain Sales 237
3. Percentage Limits and Carryovers 2384. Substantiation Rules 2405. Miscellaneous Rules 241
F. Expenses to Determine a Tax 242G. Medical Care Expenses 242
1. General Rules 2422. Qualifying Outlays 243
a. Drugs 243b. Capital Expenditures 244c. Travel, Transportation, Meals, and Lodging 244d. Care Provided by Nonprofessionals 245e. Outlays for Changes in Taxpayer’s Appearance 246f. Insurance 246
3. Coordination with Other Code Sections 247H. Standard Deduction 247I. Personal Exemptions 248
1. Overview 2482. Qualifying Dependents 249
a. Qualifying Child 249b. Qualifying Relative 251
J. Tax Credits 252Checkpoints 253
Chapter 14 · Losses from Discrete Events 255Roadmap 255A. Introduction 255B. Overall Losses, Activity Losses, and Losses from Discrete Events 255
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C. Basis for Loss 256D. Loss Deductions Allowed by Section 165 256
1. Losses Incurred in a Trade or Business or a Transaction Entered into for Profit 257a. Sales and Exchanges 257b. Casualties and Thefts 258c. Other Compulsory or Involuntary Conversions 260d. Abandonment 261e. Placement on the Tax Return 261
2. Casualty or Theft Losses of Personal-Use Property 261a. Requirements 262b. Year of Deduction 263c. Amount of Deduction 263d. Placement on the Tax Return 267
3. Worthless Securities 267E. Bad Debt Losses 267
1. Requirements 2682. Basis for Loss 2683. Type of Loss 2694. Recovery of Previously Deducted Loss 270
F. Disallowed Losses 2701. Taxpayer Wrongdoing 2702. Transactions with Related Persons 270
a. Transactions Covered 271b. Categories of Related Persons 271c. Constructive Ownership 273d. Treatment of Related Purchaser 274e. Coordination with Nonrecognition Provisions 276
Checkpoints 278
Chapter 15 · Losses from Activities 281Roadmap 281A. Introduction 281B. Mixed Use of a Dwelling Unit 281
1. Definitions 2812. Rental Use 2823. Business Use 285
a. Exclusive Use on a Regular Basis 286b. Computing Allowable Deductions 287
4. Coordination with Other Code Sections 288
CONTENTS xvii
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C. Activities Not Engaged in for Profit 2891. Determining the Status of the Activity 2892. Limitations on Deductions 291
D. Activities for Which the Taxpayer Is Not at Risk 2921. Overview 2922. Computing the Amount at Risk 2923. Amount at Risk Reduced Below Zero 293
E. Passive Activities 2941. Avoiding Section 469 294
a. Material Participation 294b. Real Estate 295
2. Applying Section 469 2973. Coordination with Other Code Sections 298
F. Excess Business Losses 299G. Wagering Losses 299Checkpoints 301
Chapter 16 · Taxable Year and Accounting Methods 303Roadmap 303A. Introduction 303B. Appropriate Taxable Year 304
1. General Rules 3042. Tax Benefit Rule 3053. Restoring Amounts Received Under Claim of Right 307
a. Applying Section 1341 308b. Failure to Satisfy Requirements 309
4. Net Operating Loss Deduction 3095. Other Events Affecting Multiple Years 3116. Forced Matching of Reporting Periods 311
C. Cash and Accrual Accounting Methods 3121. Cash Receipts and Disbursements Method 313
a. Gross Income 313b. Expenses 314
2. Accrual Method 316a. Gross Income 316b. Expenses 317
D. Accounting for Inventory 318E. Accounting for Installment Sales 320
1. Definitions 3202. Computations 321
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a. Basic Computations 321b. Contingent Payments and Open Transactions 321
3. Special Rules 323a. Depreciation Recapture 323b. Sale of Depreciable Property to Related Entity 324c. Like-Kind Exchanges 324d. Disposition by Related Purchaser 325e. Reacquiring the Property Sold 326
4. Exceptions 3265. Interest on Deferred Tax 3266. Dispositions of Installment Obligations 327
F. Accounting for Long-Term Contracts 328G. Accounting for Interest Income 329
1. U.S. Savings Bonds 3292. Original Issue Discount 329
a. Issue Price 329b. Accruing OID 330c. Sale, Exchange, or Retirement 331d. Related Provisions 332
3. Imputed Interest 333a. Section 483 333b. Section 7872 334
Checkpoints 337
Chapter 17 · Gain and Loss: Nonrecognition Provisions 339Roadmap 339A. Introduction 339B. Like-Kind Exchanges 340
1. Overview 3402. Qualifying Property 341
a. Type of Property 341b. Reason for Holding Property 341c. Attempting to Avoid Section 1031 343
3. Like-Kind Property 3444. Receipt of Boot 3455. Transfer of Other Property or Money 3466. Tax Consequences of Recognized Gain or Loss 3477. Tax Attributes of Property Received 348
a. Exchange Involves Solely Like-Kind Property 348b. Exchange Involves Receipt of Boot 349
CONTENTS xix
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c. Exchange Involves Transfer of Other Property or Money 3508. Multi-Party Transactions 3519. Deferred Exchanges 35110. Related Party Exchanges 35311. Exchanges Involving a Principal Residence 353
C. Compulsory or Involuntary Conversions 3541. Section 1033(a) 355
a. General Rule 355b. Compulsory or Involuntary Conversion 356c. Qualifying Replacement Property 357d. Time Period for Purchasing Replacement Property 358
2. Condemnation of Real Property 3593. Federally Declared Disasters 3604. Conversion of the Principal Residence 3615. Tax Attributes of Replacement Property 361
D. Wash Sales 3621. Transactions Covered 3622. Substantially Identical Stock or Securities 3633. Tax Attributes of Stock or Securities Acquired 364
E. Transfers to a Spouse or a Former Spouse 3651. General Rule 3652. Exceptions 3653. Incident to a Divorce 3664. Redeeming Stock in a Closely Held Corporation 366
F. Reacquisition of Real Property 367G. Other Nonrecognition Transactions 368Checkpoints 370
Chapter 18 · Character of Gain and Loss; Depreciation Recapture; Section 1239 371
Roadmap 371A. Introduction 371B. Depreciation Recapture 372
1. Rationale for Depreciation Recapture 3732. Factors Affecting Recapture 3733. Section 1245 375
a. Computations 375b. Other Section 1245 Issues 376
4. Section 1250 377a. Computations 377
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b. Other Section 1250 Issues 378C. Section 1239 379Checkpoints 381
Chapter 19 · Capital Gains and Losses 383Roadmap 383A. Critique of Rate Preference 383B. Preliminary Steps 384C. Significance of Holding Period 385
1. Section 1223 Holding Periods 3852. Holding Periods Governed by Other Code Sections 387
D. Section 1231 Transactions 3871. Property Covered by Section 1231 3872. Section 1231 Computations 389
a. Preliminary Hotchpot 389b. General Hotchpot 390
3. Loss Recapture 391E. Categorizing Other Dispositions 392F. Capital Gains and Losses 394
1. Sale or Exchange 3952. Capital Asset 395
a. Statutory Exclusions in Section 1221(a) and Exceptions 395b. Judicially Recognized Exclusions 399
G. Categorizing Capital Gains and Losses 4011. Holding Period 401
a. Short-Term and Long-Term 401b. Overall Net Result 401
2. Type of Asset 403a. Unrecaptured Section 1250 Gain 403b. 28-Percent Rate Gain 404
H. Determining the Tax Rate on Net Capital Gain 4041. Net Short-Term Capital Gain 4042. Net Long-Term Capital Gain 4043. Terminology 4054. Computing the Tax 407
a. Taxable Income Within a Single Maximum Rate Category 407b. Taxable Income That Straddles Maximum Rate Categories 410c. The Effect of Current-Year Capital Losses 410d. The Effect of Capital Loss Carryovers 411
I. Limitations on Capital Loss Deductions 411
CONTENTS xxi
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J. Sale of More Than One Asset 412K. Coordination with Section 170 414Checkpoints 415
Chapter 20 · Filing Status and Allocating Income 417Roadmap 417A. Introduction 417B. Status 418
1. Taxpayers Who Are Not Dependents 4182. Significance of Dependent Status 4203. Status Based on Other Factors 421
C. Income from Services 4211. Code Rules 4212. Judicial and IRS Decisions 422
a. Contractual Assignments 423b. Directing Payment to Another Person 423c. Refusal to Accept Income 424d. Registered Domestic Partners 424e. Service Provider Acting as Agent 425
D. Income from Property 4261. Fruit and Tree Doctrine 4262. Relevance of Title to Property 4273. Sale of Future Income Rights 428
E. Income in Respect of a Decedent 428F. Kiddie Tax 429Checkpoints 432
Chapter 21 · Income-Producing Entities 433Roadmap 433A. Introduction 433B. Corporations 433
1. C Corporations and S Corporations 4342. Using Corporations to Reduce Taxes 435
C. Partnerships 436D. Limited Liability Companies 438E. Trusts and Estates 439Checkpoints 441
Mastering Income Tax Master Checklist 443
Index 457
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xxiii
Table of CasesAlderson v. United States, 399Alice Phelan Sullivan Corp. v.
United States, 306Allen v. Commissioner, 263AmerGen Energy Co., LLC v.
United States, 318American Automobile Association
v. United States, 316Amos v. Commissioner, 142Andrews v. Commissioner, 189Arkansas Best Corp. v. Commis-
sioner, 400Arnett v. Commissioner, 161Arrowsmith v. Commissioner, 400Austin v. Commissioner, 41Automobile Club of Michigan v.
Commissioner, 316
Bell Lines, Inc. v. United States,343
Benaglia v. Commissioner, 51Biedenharn Realty Co. v. United
States, 396, 397Bishop v. Shaughnessy, 427Blackman v. Commissioner, 263Bolton v. Commissioner, 284, 285Bowers v. Kerbaugh-Empire Co.,
123Bowers v. Lumpkin, 212Boyter v. Commissioner, 419Bresler v. Commissioner, 400Bronstein v. Commissioner, 226
Bugbee v. Commissioner, 268Bulas v. Commissioner, 286Burnet v. Logan, 91, 323Burnet v. Sanford & Brooks Co.,
304Bynum v. Commissioner, 396
Californians Helping to AlleviateMedical Problems, Inc. v. Com-missioner, 200
Campbell v. Commissioner, 149Carlson v. Commissioner, 124Carpenter v. Commissioner, 262Cathcart v. Commissioner, 228Cesarini v. United States, 25Chamales v. Commissioner, 262Charley v. Commissioner, 27Chow v. Commissioner, 300Cohen v. Commissioner, 290Coleman v. Commissioner, 262Collins v. Commissioner, 122Commissioner v. Anderson, 51Commissioner v. Bilder, 245Commissioner v. Boylston Market
Association, 315Commissioner v. Culbertson,
437Commissioner v. Driscoll, 53Commissioner v. Duberstein, 65,
66, 67Commissioner v. Flowers, 188Commissioner v. Giannini, 424
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Commissioner v. Glenshaw GlassCo., 25, 137
Commissioner v. Groetzinger, 184Commissioner v. Idaho Power Co.,
181Commissioner v. Indianapolis
Power & Light Co., 122Commissioner v. Kowalski, 52Commissioner v. Lincoln Savings &
Loan Association, 183Commissioner v. P. G. Lake, Inc.,
399 Commissioner v. Soliman, 287Commissioner v. Sullivan, 179, 197Commissioner v. Tellier, 197, 199Commissioner v. Tufts, 87, 292Commissioner v. Wilcox, 122Corn Products Refining Co. v.
Commissioner, 399, 400Cowles v. Commissioner, 214Crane v. Commissioner, 87, 292
Dallas Transfer & Terminal Ware-house Co. v. Commissioner, 123
David E. Watson, PC v. UnitedStates, 436
Davis v. United States, 233Daya v. Commissioner, 229Dean v. Commissioner, 29Dean v. Commissioner, 334Dickerson v. Commissioner, 438Dickman v. Commissioner, 334Domeny v. Commissioner, 140
Eberl’s Claim Service, Inc. v. Com-missioner, 186
Estate of Backemeyer v. Commis-sioner, 307
Estate of Franklin v. Commissioner,86, 292
Estate of Starr v. Commissioner,192
Estate of Stranahan v. Commis-sioner, 428
Estate of Winkler v. Commissioner,438
Estate of Witt v. Fahs, 314Ewell v. Commissioner, 163Exacto Spring Corp. v. Commis-
sioner, 186
Felton v. Commissioner, 67Fleischman v. Commissioner, 213Fox v. Commissioner, 304Frank v. Commissioner, 184Frank Lyon Co. v. United States, 344Frankel v. Commissioner, 287Freda v. Commissioner, 399Frederick v. Commissioner, 307
Garnett v. Commissioner, 295Gates v. Commissioner, 96Gaylor v. Mnuchin, 54Gehl v. Commissioner, 133Gilbert v. Commissioner, 122Golsen v. Commissioner, 12Goodwin v. United States, 67Green v. Commissioner, 69Green v. Commissioner, 287Guinan v. United States, 96
Haffner’s Service Stations, Inc. v.Commissioner, 186
Hardy v. Commissioner, 439Harolds Club v. Commissioner, 186Haslam v. Commissioner, 270 Haverly v. United States, 27
xxiv TABLE OF CASES
richmond pietruszkiewicz 2e 00 fl2 fmt.qxp 6/9/20 10:37 AM Page xxiv
Heidt v. Commissioner, 211Helvering v. Horst, 426Helvering v. Le Gierse, 106Henderson v. Commissioner, 188Henry v. Commissioner, 180Hernandez v. Commissioner, 234Higgins v. Commissioner, 212Highland Farms, Inc. v. Commis-
sioner, 122Hornung v. Commissioner, 150Hort v. Commissioner, 399Huntsman v. Commissioner, 228
INDOPCO, Inc. v. Commissioner,183
International Freighting Corp., Inc.v. Commissioner, 89
International Shoe Machine Corp.v. United States, 388
Jacob v. United States, 52James v. United States, 28, 122Jenkins v. Commissioner, 180
Kahler v. Commissioner, 313Keenan v. Bowers, 262Keener v. Commissioner, 209Kochansky v. Commissioner, 423
LabelGraphics, Inc. v. Commis-sioner, 186
Lakeland Grocery Co. v. Commis-sioner, 123
Leslie Co. v. Commissioner, 344LeTourneau v. Commissioner,
161Liant Record, Inc. v. Commis-
sioner, 357, 358Liddy v. Commissioner, 425
Lindeman v. Commissioner, 51Lowry v. United States, 213Lucas v. Earl, 423, 424Lyeth v. Hoey, 69
M. L. Eakes Co., Inc. v. Commis-sioner, 180
Magneson v. Commissioner, 342Malat v. Riddell, 396Mancini v. Commissioner, 262Mayo v. Commissioner, 300Mayo Foundation for Medical Edu-
cation and Research v. UnitedStates, 10
Mazzei v. Commissioner, 270McCann v. United States, 39McCoy v. Commissioner, 152McDonell v. Commissioner, 39McKinney v. Commissioner, 284,
285McKinney v. United States, 308McWilliams v. Commissioner, 271Menard, Inc. v. Commissioner, 186Merkel v. Commissioner, 125Metro Leasing and Development
Corp. v. Commissioner, 186Midland Empire Packing Co. v.
Commissioner, 182Miller v. Commissioner, 271Monk v. Commissioner, 427Montgomery v. Commissioner, 245Mt. Morris Drive-In Theatre Co. v.
Commissioner, 182
Newcombe v. Commissioner, 213North American Oil Consolidated v.
Burnet, 307Northern California Small Business
Assistants Inc. v. Commissioner, 6
TABLE OF CASES xxv
richmond pietruszkiewicz 2e 00 fl2 fmt.qxp 6/9/20 10:37 AM Page xxv
Ocmulgee Fields, Inc. v. Commis-sioner, 353
O’Donnabhain v. Commissioner,246
Old Colony Trust Co. v. Commis-sioner, 34
Olk v. United States, 66
Parkinson v. Commissioner, 140Patients Mutual Assistance Collec-
tive Corp. v. Commissioner, 200Pau v. Commissioner, 227Payne v. Commissioner, 130Perez v. Commissioner, 138Pevsner v. Commissioner, 195Philadelphia Park Amusement Co.
v. Commissioner, 90, 91Pike v. Commissioner, 308Poe v. Seaborn, 422, 423Popa v. Commissioner, 263Powell v. Commissioner, 229Powers v. Commissioner, 263Prebola v. Commissioner, 399Preslar v. Commissioner, 132Pulvers v. Commissioner, 262
Randolph v. Commissioner, 245Raytheon Production Corp. v.
Commissioner, 136Redwing Carriers, Inc. v. Tomlin-
son, 343Regan v. Taxation with Representa-
tion of Washington, 233Renkemeyer, Campbell & Weaver,
LLP v. Commissioner, 438Rice v. Commissioner, 396–97Rockefeller v. Commissioner, 233Rogers v. Commissioner, 161Rosenspan v. United States, 188
Salvatore v. Commissioner, 427Scheiber v. Commissioner, 124Schlude v. Commissioner, 316Sherman v. Commissioner, 193Simon v. Commissioner, 202Sklar v. Commissioner, 234Smith v. Commissioner, 48South Dakota v. Wayfair, Inc., 232Stadnyk v. Commissioner, 144Starker v. United States, 351Stevens v. Commissioner, 163Stromme v. Commissioner, 167Surasky v. United States, 212Swint v. Commissioner, 251
Tank Truck Rentals, Inc. v. Com-missioner, 197
Teruya Brothers, Ltd. v. Commis-sioner, 353
Thompson v. United States, 295Topping v. Commissioner, 290
United States v. Bliss Dairy, Inc., 307United States v. Burke, 138United States v. Correll, 188United States v. Generes, 269United States v. Gilmore, 213United States v. Kirby Lumber Co.,
122–23United States v. Lewis, 307U.S. Freightways Corp. v. Commis-
sioner, 315
Van Cleave v. United States, 308Voss v. Commissioner, 226
W.W. Windle Co. v. Commissioner,399
Walker v. Commissioner, 439
xxvi TABLE OF CASES
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Wallace v. Commissioner, 168Welch v. Helvering, 180, 181Westphal v. Commissioner, 290Whipple v. Commissioner, 269White v. Commissioner, 262Williams v. Commissioner, 314
Wolder v. Commissioner, 69Wood v. United States, 199, 270
Zaninovich v. Commissioner, 315Zarin v. Commissioner, 132
TABLE OF CASES xxvii
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xxix
Table of Internal RevenueCode Sections
1, 191(g), 17, 429, 4371(g)(1), 4301(g)(2), 4291(g)(3)(A), 4301(g)(3)(B), 4301(g)(4), 4301(g)(4)(C), 4301(g)(5), 4311(h), 371, 372, 393, 402, 405, 407,
412, 414, 4361(h)(1)(A), 408 1(h)(1)(B), 378, 4081(h)(1)(C), 378, 4081(h)(1)(D), 378, 4081(h)(1)(E), 378, 4081(h)(1)(F), 4081(h)(2), 3931(h)(3), 4061(h)(4), 406, 4111(h)(4)(A), 4041(h)(4)(B), 4051(h)(5)(A), 404, 4061(h)(6), 377, 406, 4111(h)(6)(B), 4031(h)(8), 3921(h)(11), 4051(h)(11)(D)(i), 3931(j), 16, 17, 371, 405, 4071(j)(2)(A)–(D), 418
1(j)(2)(E), 4401(j)(5), 405, 4072(a), 4192(b), 41911(b), 43421, 49, 216, 247, 25221(a), 4921(c), 4923, 50, 25223(d), 5024(b)(1), 25224(c)(1), 25224(d)(1), 25224(h)(2), 25224(h)(3), 25224(h)(4), 25224(h)(5), 25225A, 223, 25225A(f)(1), 22325A(f)(1)(B), 22325A(f)(1)(C), 22325A(f)(2), 22325B, 21731, 1932, 216, 25232(c)(1)(A)(ii)(II), 42155, 1956, 1957, 1958, 19
richmond pietruszkiewicz 2e 00 fl2 fmt.qxp 6/9/20 10:37 AM Page xxix
61(a), 15, 23, 24, 25, 27, 28, 82,425
61(a)(1), 3361(a)(2), 82, 200, 31961(a)(3), 8261(a)(4), 13761(a)(9), 10661(a)(11), 12161(b), 2562, 173, 174, 21162(a), 15, 173, 22262(a)(1), 143, 26162(a)(2), 21162(a)(2)(A), 21162(a)(3), 26762(a)(4), 261, 28462(a)(13), 21162(a)(15), 20862(a)(16), 22462(a)(17), 22262(a)(18), 22362(a)(19), 22362(a)(20), 143, 17462(a)(21), 17462(a)(22), 22462(e), 143, 17462(f), 22463, 15, 24, 37163(b), 24763(c), 248, 42063(c)(1)(B), 42163(c)(2), 24863(c)(3), 42163(c)(5), 24863(c)(5)(A), 430, 43163(c)(6), 24763(c)(6)(A), 30663(c)(7), 24863(c)(7)(A)(ii), 8
63(c)(7)(B), 963(e), 24763(f), 248, 42164, 37165, 37166, 42266(a), 42267(a), 21167(b)(3), 30067(b)(6), 24767(d), 24767(g), 143, 21171, 162, 17471(a), 162, 22271(b), 162, 16571(b)(1), 16271(b)(1)(A), 162, 16371(b)(1)(B), 16371(b)(1)(C), 16471(b)(1)(D), 16471(b)(2), 16371(c), 16571(c)(1), 16571(c)(2)(A), 16571(c)(2)(B), 16671(e), 16471(f), 164, 16572, 15772(a)(1), 11472(b), 11472(b)(2), 11572(b)(3), 11572(b)(4), 11572(c)(1), 11472(e), 111, 11272(e)(1)(B), 10672(e)(2)(A), 11672(e)(2)(B), 11672(e)(3), 116
xxx TABLE OF INTERNAL REVENUE CODE SECTIONS
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TABLE OF INTERNAL REVENUE CODE SECTIONS xxxi
72(e)(4), 11372(e)(4)(A), 11672(e)(5)(A)(ii), 11172(e)(5)(C), 11372(q), 11772(t), 11772(t)(2)(A)(i), 42172(t)(2)(A)(v), 42173, 42174, 39, 149, 155, 19574(a), 88, 149, 152, 15574(b), 150, 151, 15274(b)(1), 15074(b)(2), 15074(b)(3), 15074(c), 36, 3974(c)(1), 3774(c)(2), 3874(c)(4), 3974(d), 15279, 46, 10779(a), 4579(c), 4679(d), 4583, 39, 40, 41, 4383(a), 40, 42, 38783(b), 43, 38783(b)(1), 4483(c)(1), 4083(c)(2), 4183(c)(3), 4183(d), 4283(f), 42, 38783(h), 44, 31283(i), 4085, 3486, 6186(a)(1)(A), 16786(a)(1)(B), 167
86(a)(2), 62, 16786(b)(2)(B), 167101(a), 45, 106, 107, 108, 110101(a)(1), 163101(a)(2), 108101(a)(2)(A), 108101(a)(2)(B), 108101(a)(3), 107, 109101(c), 110101(d), 110101(f), 106101(g)(1), 107101(g)(2), 107101(g)(3), 107101(g)(4), 107101(g)(5), 107101(j), 110101(j)(2)(B), 110101(j)(4), 110102, 67, 131, 195102(a), 65, 66, 67, 68, 69, 70, 336,
428102(b)(1), 70102(b)(2), 70102(c), 66, 67, 68, 195103, 70103(a), 159, 160103(b)(1), 159, 160103(b)(2), 160103(b)(3), 160103(c)(1), 159104, 311104(a), 137, 138, 139, 140104(a)(1), 61, 137104(a)(2), 137, 138, 139, 140, 141,
144, 215104(a)(3), 143, 145104(c), 139105, 45, 144, 146
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xxxii TABLE OF INTERNAL REVENUE CODE SECTIONS
105(a), 145105(b), 145105(c), 145, 146105(e), 145105(g), 146105(h), 146106(a), 45, 144106(b), 62, 145106(d), 145107, 53108, 28, 88, 122, 123, 131, 133108(a)(1), 123, 127108(a)(1)(A), 124108(a)(1)(B), 124108(a)(1)(C), 125108(a)(1)(D), 125108(a)(1)(E), 126108(a)(2), 126108(a)(3), 124108(b), 127108(b)(2)(A)–(G), 127108(b)(2)(E), 128108(b)(3), 128108(b)(4), 128108(b)(5), 127, 128108(c)(1), 128108(c)(2)(A), 125108(c)(2)(B), 126108(c)(3), 125108(c)(3)(C), 126108(c)(4), 125108(d), 132108(d)(1), 125108(d)(2), 124108(d)(3), 124108(e), 132108(e)(1), 124108(e)(2), 129108(e)(4), 132
108(e)(5), 130108(f), 131108(f)(1), 131108(f)(2)(D)(ii), 131108(f)(5), 131108(g), 125108(g)(2), 125108(h)(1), 128108(h)(2), 126108(h)(3), 126108(h)(4), 126108(h)(5), 126109, 167111, 263, 270111(a), 305, 306, 307111(c), 306112, 61115, 159117, 47, 62, 155, 156117(a), 153117(b)(1), 153, 154117(b)(2), 153117(c), 155117(d), 47, 48117(d)(2), 47, 155117(d)(3), 155117(d)(5), 47, 155119, 50, 51, 52, 54, 195, 282119(a), 50, 53119(b)(3), 52119(d), 53119(d)(2), 53 121, 95, 96, 101, 102, 103, 353,
354, 361, 367, 368, 378121(a), 95121(b)(1), 8, 97 121(b)(2)(A), 97121(b)(2)(B), 97121(b)(3), 97
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TABLE OF INTERNAL REVENUE CODE SECTIONS xxxiii
121(b)(4), 100121(b)(5), 101, 102121(b)(5)(B), 101121(b)(5)(C), 102121(b)(5)(D), 102121(c)(2), 98121(d)(2), 100121(d)(3)(A)–(C), 100121(d)(4), 95121(d)(5), 103121(d)(6), 101, 378121(d)(7), 99121(d)(9), 100121(d)(10), 101, 353121(d)(12), 100121(f), 97125, 62125(a), 62125(d)(1), 62125(f), 62125(i), 62127, 47, 48, 58, 62127(a), 46127(b), 46127(c)(1), 47127(c)(5)(B), 46 127(c)(6), 47129, 49131, 167132, 47, 48, 54, 58, 60, 62132(a)(1), 55132(a)(2), 56132(a)(3), 47. 48, 57, 58132(a)(4), 58132(a)(5), 59132(a)(6), 60132(a)(7), 61132(a)(8), 61132(b), 55
132(b)(1), 55132(b)(2), 55132(c), 56132(c)(1)(A), 57132(c)(1)(B), 57132(c)(2), 57132(d), 47, 57132(e), 39, 194132(e)(1), 52, 58132(e)(2), 54, 58132(f), 60132(f)(1), 59132(f)(3), 59132(f)(4), 60132(f)(5)(A), 59132(f)(5)(B), 59132(f)(5)(C), 60132(f)(5)(D), 59132(f)(5)(F), 60132(f)(8), 60132(g), 61132(h), 47, 55, 56, 155132(h)(3), 56132(i), 56132(j)(1), 56132(j)(4), 35, 61132(j)(8), 47, 58132(l), 47132(m), 61132(n), 61134, 61, 168135, 156, 329135(a), 156135(b)(1), 157135(b)(2), 157135(c)(1), 156135(c)(2)(A), 157135(c)(4), 157136, 167
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xxxiv TABLE OF INTERNAL REVENUE CODE SECTIONS
137, 50137(a)(2), 50137(b)(1), 50137(f), 50139, 166139(a), 166139(b), 166139(c), 166139(g), 167139(h), 166139E, 167139F, 143, 144141(e), 160148(a), 160148(c), 160148(e), 160149, 160151, 15, 157, 420151(d)(5)(B), 249152, 249, 420152(b)(1), 421152(c)(1), 249152(c)(1)(A), 249152(c)(1)(B), 249152(c)(1)(C), 249152(c)(1)(D), 249152(c)(1)(E), 250152(c)(2), 249, 272152(c)(3)(A), 249, 429152(c)(3)(B), 249152(c)(4), 250152(d)(1), 251152(d)(1)(A), 251152(d)(1)(B), 251, 420152(d)(1)(C), 251152(d)(1)(D), 251152(d)(2), 251, 272152(d)(2)(H), 251152(d)(3), 251
152(e), 243, 250, 251, 419152(f)(1), 56, 249, 251152(f)(2), 249152(f)(3), 251152(f)(4), 249, 251152(f)(5), 250162, 44, 47, 48, 172, 179, 180, 181,
184, 185, 209, 210, 214, 247,289, 291
162(a), 180, 185, 212, 225162(a)(1), 36, 112, 185162(a)(2), 188162(a)(3), 192162(c), 197162(c)(1), 197162(c)(2), 197162(c)(3), 198162(e), 198162(e)(2), 198162(e)(4)(A), 198162(e)(4)(B), 198162(e)(5), 198162(f), 198, 199162(f)(2)(A), 199162(f)(3), 199162(g), 200162(l), 247162(m), 187162(q), 200163, 209, 311, 334, 335, 336163(a), 224, 225163(b), 333163(d), 210, 214, 335163(d)(2), 214163(d)(4)(B), 393163(f), 332163(h), 222, 225163(h)(2)(A), 209, 211163(h)(2)(D), 225
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TABLE OF INTERNAL REVENUE CODE SECTIONS xxxv
163(h)(2)(F), 222163(h)(3)(A), 225163(h)(3)(B)(i), 225163(h)(3)(B)(ii), 226163(h)(3)(C), 226163(h)(3)(E), 227163(h)(3)(F)(i)(I), 226163(h)(3)(F)(i)(II), 226163(h)(3)(F)(iii), 227163(h)(4)(A), 225163(j), 210163(j)(1), 210163(j)(2), 210163(j)(5)–(6), 210163(j)(8), 210163(j)(10), 209164, 209164(a), 210, 228164(a)(1), 229164(a)(2), 230164(a)(3), 230164(b)(1), 230164(b)(5)(A), 231164(b)(5)(B), 231164(b)(5)(C), 231164(b)(5)(D), 231164(b)(5)(E), 231164(b)(5)(F), 231164(b)(5)(H), 232164(b)(6)(A), 229164(b)(6)(B), 232164(c)(1), 229164(d), 230164(d)(2)(A), 230164(d)(2)(B), 230164(f), 19165, 199, 270, 362, 363165(a), 256165(b), 256
165(c), 111, 256, 267165(c)(1), 112, 257, 258, 260, 261165(c)(2), 112, 153, 207, 214, 257,
258, 260, 261, 309, 341165(c)(3), 14, 257, 258, 261, 262,
265, 356, 390165(d), 299, 300165(e), 260, 263165(g), 267165(g)(1), 267, 387165(g)(2), 267165(h), 356, 393165(h)(1), 264165(h)(2), 393165(h)(2)(A), 264, 265165(h)(2)(B), 267165(h)(4)(A), 267165(h)(4)(E), 266165(h)(5), 266165(i)(1), 263165(i)(5), 264166, 267, 268166(a)(2), 269166(b), 268166(d), 269, 387, 393167, 84, 202, 244168, 201, 202, 206, 374, 376168(a), 203168(b), 203168(b)(1)(B), 203168(c), 203, 206168(d), 204168(d)(3), 204168(e), 205168(g), 202, 206168(i)(6), 84168(k), 202, 205170, 154, 241, 311, 414170(a)(1), 234, 240
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xxxvi TABLE OF INTERNAL REVENUE CODE SECTIONS
170(a)(3), 241170(b)(1), 238170(b)(1)(A), 238170(b)(1)(A)(ii), 153, 154170(b)(1)(B), 240170(b)(1)(C), 239170(b)(1)(C)(ii), 240170(b)(1)(C)(iii), 240170(b)(1)(D), 240170(b)(1)(D)(ii), 240170(b)(1)(E), 240170(b)(1)(G), 8, 150170(b)(1)(G)(i), 238170(b)(1)(G)(ii), 240170(b)(1)(G)(iii), 239170(b)(1)(H), 238170(c), 233170(c)(1), 150170(c)(2), 150, 233170(d)(1), 240170(e), 235, 237170(e)(1), 414170(e)(1)(A), 236170(e)(1)(B)(i)(I), 236170(e)(1)(B)(i)(II), 236170(e)(1)(B)(ii)–(iv), 237170(e)(1)(B)(iii), 241170(e)(2), 73170(e)(7), 236170(e)(7)(C), 236170(e)(7)(D), 236170(f), 240170(f)(2)(A), 241170(f)(2)(B), 241170(f)(3), 241, 242170(f)(3)(A), 235170(f)(8), 240170(f)(11), 241170(f)(12), 241
170(f)(16), 242170(f)(17), 241170(h), 242170(i), 235170(j), 235170(m), 241172, 265, 299, 310172(a), 310172(b)(1), 310172(b)(1)(D), 310172(c), 310172(d), 310175, 394179, 205, 206, 214, 311, 376179(a), 205179(b), 206179(b)(3)(B), 206179(d)(1), 205179(d)(10), 376179(e), 206183, 184, 289, 290, 291183(b), 291183(b)(1), 291183(b)(2), 291183(c), 289183(d), 290, 291183(e), 290, 291195, 184, 207, 208195(b)(1), 208195(c), 207197, 136, 207, 414199A, 15, 173, 201, 210, 310199A(b)(1), 201199A(b)(2), 201199A(b)(6), 201199A(d)(2), 201199A(d)(3), 202199A(d)(3)(B), 202199A(e)(2), 202
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TABLE OF INTERNAL REVENUE CODE SECTIONS xxxvii
212, 172, 179, 211, 212, 213, 214,215, 291
212(1), 212, 225, 289212(2), 212, 225, 289212(3), 212, 231, 242213, 139, 224, 245, 247, 311, 421213(a), 242, 243213(b), 243213(d)(1)(A), 243213(d)(1)(B), 244213(d)(1)(D), 246213(d)(2), 245213(d)(3)–(4), 243213(d)(5), 243213(d)(9)(A), 246213(d)(9)(B), 246213(d)(10), 246, 421213(d)(11), 245213(e), 247213(f), 243215, 174216(a)(1), 229217, 60, 208, 209217(b)(1), 209217(c), 208217(d)(1), 208–209217(d)(3), 209217(g), 208220, 145, 224221, 222221(b), 222221(d)(1), 222221(d)(2), 222221(e)(2), 222222, 223222(b)(2)(B), 223222(c), 223222(e), 223223, 145, 223, 224
223(f), 224223(g), 224262, 46, 112, 172, 221263, 184, 315263(a)(1), 181, 202263A, 181, 182263A(i), 181264(a)(1), 112265, 46, 215265(a)(1), 54, 112, 215265(a)(2), 160, 215265(a)(6), 54, 215267(a)(1), 74, 270, 271, 273, 275,
276267(a)(2), 311267(b), 132, 246, 271, 272, 325267(b)(1), 271267(b)(3), 379267(b)(10), 379267(b)(11), 379267(b)(12), 379267(b)(13), 272267(c), 273, 380267(c)(1), 273267(c)(2), 273267(c)(3), 273267(c)(4), 110, 132, 271, 333267(c)(5), 274267(d)(1), 275, 277267(d)(2), 277267(d)(3), 275267(g), 276274, 57, 194274(a)(1)(A) (repealed), 194274(a)(3), 194274(a)(4), 196274(b)(1), 67, 195274(c)(1), 190274(c)(2), 190
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xxxviii TABLE OF INTERNAL REVENUE CODE SECTIONS
274(d), 195274(e)(2)(A), 196274(h)(1), 193274(h)(2), 193274(h)(3), 193274(h)(6), 193274(j), 36, 37, 39274(j)(2)(A), 37274(j)(2)(B), 37274(j)(3)(A)(ii), 37274(j)(3)(B), 37274(j)(4)(B), 36274(j)(4)(C), 36274(k)(1), 194274(l)(1), 196274(l)(2), 196274(m)(2), 193274(n)(1), 188, 189, 194274(o), 195280A, 281, 282, 283, 286, 288, 289,
291, 311, 341280A(a), 282, 283, 286, 291280A(b), 283, 285280A(c), 354280A(c)(1), 285, 286280A(c)(2), 286280A(c)(4), 286280A(c)(5), 284, 285, 287, 288, 298280A(c)(6), 286280A(d)(1), 282280A(d)(2), 282280A(d)(3), 283280A(d)(4), 283280A(e)(1), 284, 285280A(f)(1), 167, 282280A(f)(3), 289, 291280A(g), 283280E, 7, 200280F, 206, 376
280F(a), 206280F(b)(1), 206280F(b)(2), 207, 376280F(d)(3), 206280F(d)(4), 195, 206280G, 187301(c)(1), 434305(b)(1), 363316, 434318(a)(1)–(3), 325318(a)(3)(B)(i), 380338(b)(5), 413355, 413401(c)(1), 146408(m), 404416(i)(1)(B), 296441, 304441(g), 304441(i), 304444(b), 304446(c), 312446(d), 312446(e), 312448, 313448(a), 313448(b), 313448(c), 181, 210, 313, 319, 328448(d)(2), 313, 434451, 312, 317451(b), 317, 319451(c), 317451(c)(1), 317451(c)(4)(A), 317451(c)(4)(C), 317453, 325453(a), 320453(b)(1), 320453(c), 320453(d), 326
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TABLE OF INTERNAL REVENUE CODE SECTIONS xxxix
453(e), 325453(e)(3), 325453(e)(6), 325453(e)(7), 325453(f)(1), 325453(f)(3), 321453(f)(4), 321, 326453(f)(5), 321453(f)(6), 324453(f)(7), 324453(g), 324453(g)(1), 324453(g)(2), 324453(i)(1), 323453(i)(2), 323453(j)(2), 322453A, 326, 327453A(b)(1)–(4), 327453A(c)(3), 327453B, 327453B(a), 327453B(b), 327453B(c), 327453B(d), 327453B(g), 327453B(h), 327454, 329, 426454(a), 426454(b), 329455, 316456, 316460(a), 328460(b), 328460(b)(1)(A), 328460(e)(1), 328460(f)(1), 328460(f)(2), 328461, 311, 312461(c), 230
461(g)(1), 228461(g)(2), 228461(h)(1), 317461(h)(2), 318461(h)(3), 318461(h)(4), 317461(l), 299, 311461(l)(1), 299461(l)(2), 299461(l)(6), 299465, 289, 292, 299, 311465(a)(2), 292465(b), 293465(b)(5), 293465(d), 292465(e), 293467, 312467(a), 312467(d), 312469, 185, 289, 294, 295, 299, 311469(a), 297469(b), 298469(c)(2), 294, 295469(c)(4), 295469(c)(7), 294, 296469(c)(7)(B), 296469(c)(7)(C), 296469(c)(7)(D)(ii), 296469(d)(1), 297469(e)(1), 297469(f)(1), 298469(f)(3), 298469(g)(1), 298469(g)(1)(A), 298469(g)(1)(B), 298469(g)(2), 298469(g)(3), 298469(h)(1), 294469(h)(5), 294
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xl TABLE OF INTERNAL REVENUE CODE SECTIONS
469(i)(1), 295469(i)(2), 295469(i)(3), 296469(i)(5), 296469(i)(6), 295469(j)(6), 298469(j)(10), 289, 299471(c), 319472(c), 319483, 333483(b), 333483(c)(1), 333483(d), 333483(e), 333501(a), 131501(c)(3), 131501(h), 233529, 156, 157, 158529(c)(1), 157529(c)(2), 158529(c)(3)(C), 158529(c)(7), 158529(c)(8), 158529(c)(9), 158529(e)(3), 158529(e)(5), 156530, 156, 157, 158530(b)(1)(A)(ii), 158530(b)(1)(A)(iii), 158530(b)(1)(E), 158530(b)(2), 158530(c)(1), 158530(d)(2), 157530(d)(3), 158530(d)(6), 158611, 207613, 207613A, 207631, 388
641, 440642, 241644, 304664, 241671, 440691, 43, 71, 74, 426691(a)(1), 428691(a)(3), 428691(b), 428691(c), 429701, 436702, 436704(b)(2), 437704(e)(1), 437706(b), 304707, 436707(b), 246707(b)(1), 132, 272901, 217904(a), 217904(c), 217904(d), 217911(a), 160, 161, 162911(b)(1), 161911(b)(2), 161911(c)(1)–(2), 161911(c)(3), 161911(c)(4), 162911(d)(1), 161911(d)(2), 429911(d)(2)(A), 161911(d)(6), 1611001, 26, 82, 1121001(a), 82, 83, 85, 2561001(b), 82, 83, 87, 891001(c), 85, 3651011, 831011(b), 73, 2371012, 71, 83, 274
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TABLE OF INTERNAL REVENUE CODE SECTIONS xli
1012(a), 831012(d), 841014, 27, 71, 307, 386, 4281014(a), 75, 761014(a)(1), 751014(a)(2), 751014(b), 741014(c), 741014(e), 75, 761015, 71, 3651015(a), 71, 72, 74, 75, 77, 96, 256,
3861015(d)(6), 721015(e), 771016, 83, 1111016(a), 841016(a)(1)(B), 1111016(a)(2), 84, 3731017, 127, 1281017(a), 1281017(b), 1281017(b)(1), 1281017(b)(2), 1291017(b)(3), 1291017(b)(4), 1291017(c), 1291017(d)(1), 1291019, 1671031, 85, 92, 101, 103, 257, 274,
276, 340, 341, 342, 343, 352,353, 354, 359, 368, 386
1031(a)(1), 340, 345, 3461031(a)(2), 3411031(a)(3), 352, 3531031(a)(3)(A), 3521031(a)(3)(B), 3521031(b), 324, 3451031(c), 345
1031(d), 276, 345, 347, 348, 350,368
1031(f), 276, 3531031(f)(2), 3531031(f)(4), 3531031(h), 3411032, 441033, 136, 265, 354, 356, 357, 358,
359, 361, 362, 368, 377, 386,390, 393
1033(a), 355, 3591033(a)(1), 3551033(a)(2), 103, 3551033(a)(2)(B), 3581033(b)(1), 3611033(b)(2), 3611033(g), 3591033(g)(1), 3591033(g)(2), 3591033(g)(4), 3591033(h), 3601033(h)(1), 3601033(h)(1)(A)(i), 3601033(h)(1)(A)(ii), 3601033(h)(1)(B), 3601033(h)(2), 3601033(h)(4), 3601033(i), 3551034 (repealed), 3681035(a)(1), 1121035(a)(3), 1171035(d), 3681038, 3261038(a), 3671038(b), 3671038(b)(1), 3671038(b)(2), 3671038(c), 3671038(d), 367
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xlii TABLE OF INTERNAL REVENUE CODE SECTIONS
1038(e), 3671040, 3681041, 68, 71, 85, 271, 276, 365,
366, 3751041(a), 77, 3651041(b)(1), 68, 761041(b)(2), 76, 77, 1081041(c), 3661041(d), 68, 3651041(e), 771043, 3681060, 4131060(a), 4131060(c), 4131091, 363, 3861091(a), 277, 362, 3631091(b), 3651091(c), 3651091(d), 3641202, 103, 104, 310, 404, 4061202(a)(4), 1031202(b), 1041202(c)(1), 1041211, 267, 311, 3891211(b), 410, 4111212(b), 4111212(b)(1), 4121212(b)(2), 4121221, 181, 372, 388, 3951221(a), 3951221(a)(1), 388, 395, 397, 3981221(a)(2), 388, 3971221(a)(3), 388, 397, 3981221(a)(3)(C), 761221(a)(4), 3981221(a)(5), 388, 3981221(a)(6), 3991221(a)(7), 3991221(a)(8), 399
1221(b)(3), 3981222, 372, 3941222(1), 4011222(2), 4011222(3), 4011222(4), 4011222(5), 4011222(6), 4011222(7), 4011222(8), 4011222(9), 4021222(10), 4021222(11), 372, 402, 405, 4061223, 372, 385, 3861223(1), 348, 362, 3861223(2), 3861223(3), 364, 3861223(5), 3861223(9), 76, 3861231, 85, 176, 181, 235, 237, 261,
275, 311, 324, 342, 347, 356,357, 362, 368, 371, 372, 373,377, 378, 379, 384, 385, 386,387, 388, 389, 390, 391, 392,393, 394, 396, 397, 400, 403,404, 413, 414
1231(a)(1), 3891231(a)(2), 3891231(a)(3), 3871231(a)(3)(A), 3871231(a)(3)(A)(i), 3871231(a)(3)(A)(ii)(I), 3871231(a)(3)(A)(ii)(II), 3871231(a)(3)(B), 3871231(a)(4)(A), 3891231(a)(4)(C), 3901231(b)(1), 3881231(b)(1)(A)–(D), 3881231(b)(2)–(4), 388
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TABLE OF INTERNAL REVENUE CODE SECTIONS xliii
1231(c), 3911231(c)(5), 3911233, 3871233(b)(1), 3871233(d), 3871234(a), 3931234(b), 3931234A, 3931234B, 3931235, 3981236(a), 3971237, 3961237(a), 3961237(b), 3961239, 324, 372, 379, 380, 384, 389,
3941239(b), 3791239(b)(2), 3801239(b)(3), 3801239(c)(1)(A), 3791239(c)(1)(B), 3791239(c)(1)(C), 3801239(c)(2), 3801239(e), 3791241, 3931242, 3941243, 3941244, 3941244(b), 3941245, 129, 205, 311, 323, 348, 355,
356, 372, 373, 374, 375, 376,377, 378, 403
1245(a)(1), 374, 3751245(a)(2), 3751245(a)(2)(A), 307, 362, 374, 3761245(a)(2)(B), 3751245(a)(2)(C), 3761245(a)(3), 3721245(b), 375
1245(b)(4), 3551245(d), 3741250, 102, 129, 311, 323, 324, 347,
355, 372, 373, 374, 377, 378,379, 385, 392, 403, 404, 405,406, 407, 408, 410, 411
1250(a)(1), 3741250(a)(1)–(3), 3741250(a)(1)(A), 3741250(a)(1)(B), 3741250(a)(1)(B)(v), 3741250(b)(1), 374, 377, 4061250(b)(3), 362, 3791250(c), 3721250(d), 3751250(d)(4), 3551250(h), 3741252, 3941253, 3941271, 3311271(a)(2)(A), 3311272, 3311272(a)(1), 3301272(a)(2), 3311272(a)(3), 330, 3311272(a)(4), 330–3311272(a)(5), 3301273(a), 3291273(a)(3), 3291273(b)(1), 3291273(b)(2), 3291273(b)(3), 3301273(b)(4), 3301273(b)(5), 3291274, 3301274(a), 3301274(c)(1), 3301274(d), 333, 334, 335, 3361274A(a), 330, 333
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xliv TABLE OF INTERNAL REVENUE CODE SECTIONS
1274A(b), 3301274A(d)(2), 3301275(a)(1)(A), 3291276–1278, 3321278(a)(2)(B), 3321281–1283, 3321286, 3321287, 3321288, 3321341, 307, 308, 3091341(a)(1)–(3), 308, 3091341(a)(4)–(5), 3091341(b)(1), 3091361(b), 4351361(c)(1), 4351362, 4351366, 4351378(b), 3041398, 4401400Z-1, 3681400Z-2, 368, 3691400Z-2(a)(1), 3681400Z-2(a)(2)(B), 3681400Z-2(b)(1), 3691400Z-2(b)(2)(A), 3691400Z-2(b)(2)(B)(i)–(ii), 3691400Z-2(b)(2)(B)(iii)–(iv), 3691400Z-2(c), 3691401(b)(2), 171402(a)(13), 4381411, 172032A, 3683101(b)(2), 173402, 196013(a), 419
6013(d)(2), 4196013(d)(3), 4186015, 4186050L(a)(2)(A), 2366315, 196401(b), 18 6621(a)(2), 3277701, 77701(a)(25), 185, 3137701(a)(43), 71, 927701(a)(44), 927701(o), 137702, 1067702B(c), 1077703(a)(2), 4197703(b), 4197805, 107805(e), 107872, 224, 334, 335, 3367872(a), 335, 3367872(b), 3367872(c)(1)(B), 3367872(c)(1)(C), 3367872(c)(2), 3357872(c)(3), 3367872(d)(1), 3357872(e)(1), 3347872(e)(2), 3347872(f)(2), 3357872(f)(3), 3347872(f)(5), 3347872(f)(6), 3347872(f)(10), 335, 3367872(g)–(h), 336
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xlv
Table of RegulationsTreasury Regulations
1.25A-2(d), 2231.61-1(a), 23, 281.61-2(a)(1), 28, 1491.61-2(d), 28, 881.61-3(a), 200, 3191.61-14(a), 26, 281.72-1(b), 1141.72-1(e), 1131.72-2(b)(2), 1141.72-2(b)(3), 1161.72-4(b)(1), 1141.72-4(d)(3), 1161.72-9, 114, 1151.72-9, Table V, 1151.72-9, Table VI, 1151.74-1(a)(1), 391.74-1(a)(2), 1521.79-1(a), 451.79-3, 461.83-1(a)(1), 40, 431.83-1(b)(1), 431.83-1(b)(2), 431.83-1(b)(3), 431.83-1(c), 431.83-1(d), 431.83-1(e), 431.83-1(f), Example 2, 411.83-2(a), 43, 441.83-3(a)(1)–(7), 401.83-3(b), 401.83-3(c)(1), 40
1.83-3(c)(2), 411.83-3(h), 421.83-3(i), 421.83-4(a), 43, 3871.83-5(c), 421.83-6(a)(4), 451.83-6(b), 441.83-6(c), 451.101-4(a)(1)(ii), 1101.102-1(a), 681.102-1(e), 701.104-1(b), 1371.104-1(c)(2), 1381.107-1(a), 531.107-1(b), 531.107-1(c), 531.117-2(a)(2), 1551.117-3(a), 1531.117-3(c), 1531.119-1(a)(2), 511.119-1(a)(2)(ii)(a)–(c), 511.119-1(a)(3), 521.119-1(b), 521.119-1(c), 511.121-1(b)(1), 951.121-1(b)(2), 961.121-1(b)(3), 971.121-1(c)(2), 961.121-1(c)(4), Example 3, 951.121-1(d), 3781.121-1(e), 102, 354, 3781.121-3, 98
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xlvi TABLE OF REGULATIONS
1.121-3(c), 981.121-3(e)(2)(iii)(C), 981.121-3(g)(1), 981.121-4(d), 3611.121-4(g), 971.132-1(e), 611.132-1(f), 471.132-2(a)(2), 551.132-2(a)(5)(ii), 551.132-2(c), 551.132-3(a)(2)(ii), 571.132-3(b)(2), 561.132-3(c)(1)(ii), 571.132-4(a)(1)(iv), 551.132-5, 57, 581.132-5(a)(1)(ii), 581.132-5(a)(1)(v), 581.132-5(a)(2), 571.132-6(c), 591.132-6(d)(2), 591.132-6(e)(1), 581.132-6(e)(2), 591.132-6(f), 581.132-7(a)(ii), 541.132-7(b), 541.132-8(a)(2)(i), 561.132-8(c)(2), 561.132-8(d), 561.132-9(b), Q&A-1(b), 601.132-9(b), Q&A-16(b), 591.132-9(b), Q&A-16(c), 591.152-1(a)(2), 2491.152-1(b), 2491.152-4, 2501.162-2(b), 1891.162-2(e), 1911.162-3, 1841.162-3(a), 1831.162-5, 58, 192, 193
1.162-7(b)(3), 1861.162-21(b)(1), 1981.162-21(b)(2), 1991.162-21(c), 1991.164-1(a), 2291.164-3(b), 2291.164-4(a), 2291.164-6(d), 2301.165-1(d)(2)(iii), 2631.165-2(a), 2611.165-7(a)(1), 259, 2631.165-7(a)(2)(ii), 2591.165-7(a)(3), 2621.165-7(b)(1), 258, 2641.165-8(d), 2601.166-1(c), 2681.166-1(f), 2701.166-2(a), 2681.166-2(b), 2681.166-2(c), 2681.166-5, 2691.170A-1(c)(1), 2351.170A-1(g), 2351.170A-1(h)(3), 2321.172-3(a)(3), 3101.179-1(e), 206, 3761.183-1(b), 2911.183-1(d)(1), 2901.183-2(a), 2891.183-2(b), 289, 3001.212-1(b), 2131.212-1(f), 2121.212-1(g), 2121.213-1(a)(1), 2431.213-1(e)(1)(ii), 243, 2451.213-1(e)(1)(iii), 2441.213-1(e)(1)(v), 2451.217-2(b), 2091.217-2(d)(2)(ii), 209
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TABLE OF REGULATIONS xlvii
1.262-1(b)(5), 60, 1911.263(a)-1(f), 183, 1841.263(a)-2, 1831.263(a)-3, 84, 182, 183 1.263(a)-3(g), 1821.263(a)-3(h)–(i), 1831.263(a)-4, 1831.263(a)-4(b), 1831.263(a)-4(d)(3), 3151.263(a)-4(f)(1), 3151.263(a)-4(l), Example 7, 1831.267(c)-1(a)(4), 2711.267(c)-1(b), 2731.267(d)-1(a)(2), 2751.267(d)-1(a)(3), 2751.267(d)-1(c)(1), 2751.267(d)-1(c)(3), 2751.274-4, 1901.338-6(b), 4141.446-1(c)(1)(i), 3141.451-2(a), 3141.453-12(a), (d), 3231.469-5(f)(1), 2951.704-1(e)(1)(iii), 4371.704-1(e)(1)(iv), 4371.911-2(h), 1611.911-3(f), 1611.911-6, 1611.1001-1(e), 73, 74, 3661.1001-2(a)(1), 871.1001-2(a)(2), 88, 1331.1001-2(a)(4)(ii), 881.1001-2(b), 1331.1001-2(c), Example 7, 87, 1331.1001-2(c), Example 8, 88, 1331.1012-1(c)(1), 841.1012-1(e), 841.1015-1(a)(2), 731.1015-4(a), 73, 74, 366
1.1017-1, 1281.1031(a)-1(b), 3441.1031(a)-1(c), 3441.1031(b)-1(c), 3461.1031(d)-1(e), 3471.1031(d)-2, Example 1, 3451.1031(d)-2, Example 2, 3461.1031(k)-1(b)(1)–(2), 3521.1031(k)-1(c)(4), 3521.1031(k)-1(g), 351, 3521.1031(k)-1(g)(4), 3511.1032-1(a), 451.1033(a)-2(c)(1), 3571.1033(a)-2(c)(3), 3581.1033(a)-2(c)(9), 3571.1033(b)-1(b), 3621.1038-1, 3671.1038-1(h), 3671.1038-2, 3671.1041-2, 3671.1060-1(b)(1), 4131.1060-1(b)(2)(i), 4131.1060-1(c)(4), 4131.1060-1(d), Example 2, 4141.1091-1(h), 3651.1091-2(a), 3641.1221-1(b), 3971.1221-3(a), 3981.1245-1(d), 3741.1245-2(a)(7), 3751.1245-4(d)(2), Example 2, 3561.1250-1(a)(5)(i), 3741.1341-1(a)(2), 3081.1341-1(b)(1)(i)–(ii), 3091.1341-1(d)(4)(ii), 3091.1400Z2(a)-1(b)(11)(iii)(A), 3681.1400Z2(b)-1(c), 3691.1400Z2(b)-1(c)(3)–(4), 3691.1400Z2(b)-1(d)(i), 369
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xlviii TABLE OF REGULATIONS
15a.453-1(b)(2)(i), 32015a.453-1(b)(2)(iii), 32015a.453-1(b)(2)(v), 32015a.453-1(c)(1), 32215a.453-1(c)(2), 32215a.453-1(c)(3), 32215a.453-1(c)(4), 32215a.453-1(c)(6), 32215a.453-1(c)(7), 32215a.453-1(d)(3)(i), 32615a.453-1(d)(3)(ii), 326301.7701-3, 434, 438
Proposed Treasury Regulations1.74-1(b), 1501.74-1(d), 1501.74-1(f), 1501.74-2(c), Example 2, 371.101-1(e)(1), 1091.101-1(f)(3), 1091.102-1(f)(2), 671.117-6(c)(1), 1541.117-6(c)(2), 153, 1541.117-6(c)(3), 1531.117-6(c)(4), 1541.117-6(c)(6), Example 1, 1541.117-6(d)(1), 1551.117-6(e), 1541.125-1(a)(1), 621.125-1(a)(3), 621.125-1(e), 631.125-5(h), 49, 50, 62
1.125-5(i), 491.125-5(j), 501.274-8(d)(3), 361.274-11, 1941.274-12, 1941.274-12(a), 1941.274-12(b)(3), 1941.280A-1(c)(1), 2821.280A-2(i)(3), 2881.280A-2(i)(5), 2881.280A-3(d)(3), 2851.465-22, 2931.7872-4(d)(1), 336
Temporary Treasury Regulations1.62-1T(d), 2311.71-1T(b), Q&A–5, 1621.71-1T(b), Q&A–6, 1621.71-1T(b), Q&A–9, 1641.71-1T(c), Q&A–17, 1661.71-1T(c), Q&A–18, 1661.163-10T(p)(5), 2251.469-2T(d)(6), 2991.469-5T(a), 294, 2951.469-5T(c), 2941.469-5T(d), 2951.469-5T(e)(2), 2951.469-5T(f)(2), 2951.1041-1T(a), Q&A–5, 3661.1041-1T(b), 3661.1041-1T(c), Q&A–9, 3661.1041-1T(d), Q&A–12, 77, 365
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xlix
Table of Administrative AuthoritiesActions on Decisions
AOD 1979-66, 245AOD 1991-02, 228AOD 2010-02, 295AOD 2011-06, 300AOD 2016-02, 226
AnnouncementsAnnouncement 2002-18, 27
Chief Counsel AdviceCCA 200809001, 138CCA 201021050, 424CCA 201238027, 345
IRS Administrative ManualsInternal Revenue Manual (IRM)
4.10.4.6.7, 24
IRS PublicationsPublication 527, 284Publication 4681, 124
NoticesNotice 97-59, 392Notice 2004-27, 260Notice 2011-14, 168Notice 2011-72, 58Notice 2012-12, 144Notice 2013-13, 342Notice 2013-71, 63Notice 2014-21, 83
Notice 2018-35, 317Notice 2018-76, 194Notice 2018-99, 196
Pre-1954 Code RulingsO.D. 514, 51, 59
Private Letter RulingsPLR 8719007, 375PLR 9126063, 52, 53PLR 200041022, 138PLR 200805012, 344PLR 200834016, 199PLR 200937007, 323PLR 200942017, 141PLR 201232024, 427PLR 201950004, 140
Revenue ProceduresRev. Proc. 87-57, 204, 205Rev. Proc. 92-71, 314Rev. Proc. 2000-37, 352Rev. Proc. 2004-34, 317Rev. Proc. 2005-14, 103, 354 Rev. Proc. 2008-16, 342Rev. Proc. 2013-13, 288Rev. Proc. 2020-11, 131
Revenue RulingsRev. Rul. 55-261, 245Rev. Rul. 55-278, 426Rev. Rul. 57-125, 163
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l TABLE OF ADMINISTRATIVE AUTHORITIES
Rev. Rul. 61-119, 343Rev. Rul. 63-91, 245Rev. Rul. 63-232, 262Rev. Rul. 64-104, 426Rev. Rul. 64-236, 213Rev. Rul. 64-237, 358Rev. Rul. 66-167, 424Rev. Rul. 66-334, 356Rev. Rul. 67-48, 308Rev. Rul. 67-246, 234Rev. Rul. 67-420, 163Rev. Rul. 69-154, 146Rev. Rul. 69-188, 224Rev. Rul. 69-487, 376Rev. Rul. 70-254, 108Rev. Rul. 70-474, 195Rev. Rul. 70-598, 385Rev. Rul. 72-151, 276Rev. Rul. 72-163, 150Rev. Rul. 74-581, 425Rev. Rul. 75-230, 142Rev. Rul. 75-232, 139Rev. Rul. 75-316, 247Rev. Rul. 75-342, 399Rev. Rul. 76-255, 419Rev. Rul. 76-479, 425Rev. Rul. 77-110, 292Rev. Rul. 77-201, 364Rev. Rul. 77-290, 425Rev. Rul. 78-38, 234Rev. Rul. 78-39, 243
Rev. Rul. 78-301, 53Rev. Rul. 79-132, 425Rev. Rul. 79-261, 358Rev. Rul. 79-313, 141Rev. Rul. 80-335, 314Rev. Rul. 82-74, 308Rev. Rul. 83-104, 234Rev. Rul. 84-13, 425Rev. Rul. 87-112, 426Rev. Rul. 89-2, 359Rev. Rul. 92-29, 231Rev. Rul. 93-75, 306Rev. Rul. 97-9, 244Rev. Rul. 99-7, 188, 191Rev. Rul. 99-28, 243Rev. Rul. 2002-22, 426Rev. Rul. 2007-69, 168Rev. Rul. 2008-5, 363Rev. Rul. 2008-34, 131Rev. Rul. 2009-9, 260Rev. Rul. 2009-13, 111Rev. Rul. 2009-14, 111Rev. Rul. 2010-25, 227Rev. Rul. 2014-2, 95Rev. Rul. 2019-11, 305Rev. Rul. 2020-5, 111
Technical Advice MemorandaTAM 200437030, 59TAM 201903017, 52
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Series Editor’s ForewordThe Carolina Academic Press Mastering Series is designed to provide you
with a tool that will enable you to easily and efficiently “master” the substanceand content of law school courses. Throughout the series, the focus is onquality writing that makes legal concepts understandable. As a result, the seriesis designed to be easy to read and is not unduly cluttered with footnotes orcites to secondary sources.
In order to facilitate student mastery of topics, the Mastering Series includesa number of pedagogical features designed to improve learning and retention.At the beginning of each chapter, you will find a “Roadmap” that tells youabout the chapter and provides you with a sense of the material that you willcover. A “Checkpoint” at the end of each chapter encourages you to stop andreview the key concepts, reiterating what you have learned. Throughout thebook, key terms are explained and emphasized. Finally, a “Master Checklist”at the end of each book reinforces what you have learned and helps you identifyany areas that need review or further study.
We hope that you will enjoy studying with, and learning from, the MasteringSeries.
Russell L. Weaver Professor of Law & Distinguished University Scholar University of Louisville, Louis D. Brandeis School of Law
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PrefaceThe income tax affects individuals in many ways. First, of course, they must
compute the amount they owe (or any refund due to them) on an annual basis.Second, they confront tax consequences when they sell property or make giftsto family members. The attorneys who advise them encounter tax issues inevery practice area. If they represent businesses accused of civil or criminalwrongdoing, they try to structure damages and other payments to preservetheir deductibility. If they practice matrimonial law, they must understand thetax consequences of property settlements and custody. If they specialize in realproperty transactions, they regularly encounter the tax consequences of debtrestructuring, eminent domain, and like-kind exchanges.
This book covers concepts you are likely to encounter in a basic federalincome tax course. These range from the components of taxable income andtax— gross income, exclusions, deductions, and credits— to the rules thatgovern timing and character of income and deductions. Recognizing that taxmust be considered in context, we focus on the most common income anddeduction provisions and indicate how they affect taxpayers in various settings.We include numerous examples to illustrate the concepts in addition to citationsto relevant authority.
Because it may appear that you must know everything about the incometax to understand any of its provisions, we begin with an overview of how theparts fit together. But our primary focus is on the material in subsequentchapters. We hope you find this book and its structure a useful guide to learningfederal income tax.
Gail Levin Richmond Christopher M. PietruszkiewiczShepard Broad College of Law University of EvansvilleNova Southeastern University April 2020April 2020
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AcknowledgmentsChristopher Pietruszkiewicz thanks Laralee Garvin, Brian Howsare, Kelly
Kromer, Todd Taranto, Erik Vigen, Melissa Grand, Kristen Bell, Sharon Tsai,Emily Brouillette, and Jessica Fehr for their work in checking, updating, andrevising the first edition.
Gail Richmond thanks Amy Rojas for her assistance in proofreading portionsof the first edition.
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