Court speaks on vacation-home losses

Article Abstract:

The US Tax Court ruled in Toups v. Commissioner that a married couple's losses in the short-term rental of their vacation home were passive losses under IRC 469 since the rental did not make the couple 'material participants' in a Schedule C trade or business. Thus, the losses had to be deferred and the current deduction was disallowed. The court did not agree that the short-term stays of guests made the rental like a motel or hotel. The judges also agreed with an IRS determination that the main reason for plaintiffs' stays at their cottage was vacation rather than business.

Taxation, Real estate, Real property, Second homes

---

Middle course taken on cleanups; debtors can walk away

Article Abstract:

The US Court of Appeals for the 9th Circuit has allowed bankrupt polluters to discharge a debt owed to California for the cleanup of lumber fungicide at their defunct lumber business. The issue was when a government agency claim for recovering cleanup costs arises. Following In Re National Gypsum Co, decided in 1992, the court ruled that a claim starts when the parties 'can fairly contemplate' a government agency's cleanup costs.

Cases, Toxic torts, Bankruptcy discharge

---

Debtors, creditors vie on claims trading

Article Abstract:

Debtor corporations are asking bankruptcy courts to prohibit others from trading their debt. Debtors complain that claims trading robs them of potential tax benefits from net operating losses (NOLs). Section 382 limits use of NOLs against income for tax purposes, but does allow bankrupt corporations to avoid the restriction under some circumstances.

Laws, regulations and rules, Debt

Similar abstracts:

• Abstracts: Forum selection; case removal. Automation comes to court: in multidistrict and complex lawsuits, computers manage documents and save money
• Abstracts: Court KOs Microsoft with Tunney Act; plus some automation suggestions for the counsel of the Simpson affair. Breaking up is hard to do: some legal pros propose their own remedies in the Microsoft ruling
• Abstracts: The adolescent's stake in the allocation of educational control between parent and state. Can states impose registration requirements on online charitable solicitors?
• Abstracts: Constitutional migration and the bounds of comparative analysis. Charitable choice and the critics
• Abstracts: Observations on the post-Bayh-Dole rise of patenting at American universities. Challenging claims! Patenting computer programs in Europe and the USA

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.