United States

The Tax Adviser’s April 2014 Tax Clinic articles

The following tax insights originally appeared in The Tax Adviser's April 2014 Tax Clinic column. Authored by a range of RSM tax professionals across the firm, these ten articles focus on current tax issues and opportunities impacting business and individual taxpayers.

Corporations and shareholders


Structuring minority interest acquisitions with a step-up in basis

Related-party traps can lead to ordinary income, as opposed to capital gain, recognition by pre-transaction target entity shareholders.

  • Nick Gruidl, Corey Wittersheim

Employee benefits and pensions


Considering using IRA funds as a source of business start-up capital

While a popular subject in the financial press, using IRA funds as start-up capital involves tax complexities that can lead to dire results.

  • Bill O’Malley

Estates, trusts and gifts


Consider an approach to fight a state’s assertion of nexus

Recent cases involving trusts highlight planning strategies that may ease the state tax burden on undistributed trust income.

  • Jonathan Schwartz


Consider decanting a solution for trusts with changed circumstances

Trust decanting has gained popularity over the past three years as a way to deal with changing circumstances and tax laws.

  • Audrey Young

Excise Taxes


Bringing clarity to fuel excise taxes and credits

A straightforward look at the complex regulations and interrelated code provisions that must be considered to determine fuel excise tax liability.

  • Tom Windram, Justin Silva

Foreign income and taxpayers


Cancellation of debt income for debtor subsidiary corporations

The issues surrounding cancellation of indebtedness have become particularly relevant with respect to multinational entities.

  • Ramon Camacho, Adnan Islam


Accounting method procedures and pitfalls when determining E&P

This article provides an overview of the timing and limitations that affect when a foreign corporation must adopt and change accounting methods.

  • Ramon Camacho, /content/mcgladrey/en_US/about/profiles/kate-abdoo

Real estate


Section 355 and REITs opportunities for owner-occupied real estate

Explore the challenges taxpayers face in a section 355 transaction involving a real estate investment trust holding owner-occupied real estate.

  • Nick Gruidl, Parr Thomson

S Corporations


Impact of section 1411 on S corporations and their shareholders

Section 1411 raises many issues for S corporations and their shareholders with regard to the additional 3.8 percent tax on net investment income.

  • Ed Decker, Becki Sand

State and local taxes


State tax tribunals and taxpayer representation by CPAs

Allowing CPAs to represent taxpayers in front of state tax tribunals offers benefits but may impair the CPA’s independence.

  • Brian Kirkell

Excerpted from the April 2014 issue of The Tax Adviser. Copyright © 2014 by the American Institute of Certified Public Accountants, Inc.