Short Takes: Recent Developments of Interest to Investors

摘要

This note considers a potpourri of recent developments relevant to investors: characterization of gain or loss; the timing of income recognition; the passive activity loss rules; taxation of phantom income from Ponzi schemes; areas where the IRS has declined to issue rulings; the net investment income tax regulations; regulations under Section 1001 on the exchange of derivative contracts; the income taxation of grantor trusts; economic substance issues; basis, capitalization, and depreciation issues; issues affecting homeowners; and employee benefits subject to taxation. In a press-time addendum, the note also addresses the new Camp tax reform proposal and how it might affect tax-free like-kind exchanges.