The jeopardized deductibility of lessee's lease termination payment

Article Abstract:

The unconditional rule on lease termination payments was decided by the US Tax Court in the case of Cassatt and Co. in 1942. Under the rule, lessee's lease termination payments are deductible in the year actually accrued or paid. A qualification to this rule, the Pig and Whistle rule, holds that the lease termination payment must be capitalized into the extended lease cost. The Pig and Whistle rule has been extended by the IRS to include cases in which lessees paying termination payments enter into new leases or purchases with different landlords.

Tax Deductions & Exemptions, Analysis, Evaluation, Taxation, Tax administration and procedure, Tax administration, Tax deductions, Leases, Rents (Property)

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Changing concepts of like-kind exchanges

Article Abstract:

Like-kind exchanges are more than just real estate exchanges. The laws have been so developed that property values can be decided upon, the property to be exchanged can be decided upon and the delivery date can be decided upon. The barrier between buyer and seller has become almost non-existent. If the last barrier was removed then the buyer and seller could conduct like-kind exchanges on their own without the need for real estate agents, tax lawyers or Internal Revenue Service employees.

Like-kind exchanges, Laws, regulations and rules

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Foreclosure and taxes: a problem of unlimited consequences

Article Abstract:

'Fair market value' is difficult to determine. Taxpayers may understate or overstate the fair market value of property depending upon their interests in a particular transaction. The US Internal Revenue Service has a rule about fair market value and bid-in prices which it does not always follow.

Personal Income Taxes, Prices and rates, Economic policy, Real estate industry, Personal income tax, United States. Internal Revenue Service

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