Lynn Nichols Federal Tax Update Podcast

April 2, 2018, edition

 

Listen as Lynn Nichols provides commentary on 6 Items pertaining to current developments in U.S. tax law. This week's topics include:

OUR PROGRAM THIS WEEK INCLUDES . . . . . .

1. NYSBA Tax Section Submits Report on Qualified Business Income

Karen Sowell of the New York State Bar Association Tax Section has submitted comments to address various technical and interpretative issues that have arisen as a result of the addition of section 199A by the Tax Cuts and Jobs Act (P.L. 115-97).

[Tax Notes Today; 3/26/2018]  

 

1. Third Circuit Affirms Drug Technology Royalties Were Ordinary Income

A divided panel of the Third Circuit affirmed a Tax Court decision that held that a pharmaceutical scientist didn't transfer all substantial rights to the liquisolid drug technology he developed and, thus, subjected royalties he received under a licensing agreement with a drug company to treatment as ordinary income and not capital gains under section 1235.

[Spireas , Spiridon v. Commissioner; CA 3; No. 17-1084; 3/26/2018] 

 

1. Grants Received for Building Restoration Were Taxable Income

A U.S. district court, denying a partnership's request to amend its complaint, held that $11 million in grants the partnership received from the New York State Empire State Development Corp. for restoration of a former federal building constituted income for federal income tax purposes and were not excludable from income.

[Uniquest Delaware LLC et al. v. United States; WD NY; No. 1:15-cv-00638 ; 3/27/2018]   

 

1. No Hardship distribution from 401(k) to pay off student loans

[INFO 2018-0001; 1/11/2018; rel. 3/30/2018 

 

1. IRS Advises on Exchanges Involving Construction of Replacement Property

[INFO 2018-0003; 1/5/2018; rel. 3/30/2018

 

1. IRS Outlines 'Dependent' Qualification for Non-Citizen Children

[INFO 2018-0004; 2/8/2018; rel. 3/30/2018]