LexisNexis® Legal Newsroom
Proposed Changes to Section 1202 Seek to Introduce a Temporary Full Exclusion for Gain from Disposition of Certain Small Business Stock

The proposed changes to the Internal Revenue Code section 1202 could increase interest in investments in small business stock. Section 1202 of the Internal Revenue Code provides a special partial exclusion from gross income for individual taxpayers of gain from the sale or exchange of qualified...

To Encourage Investment, Small Business Jobs Act Includes Short-Term Full Exclusion from Gross Income of Gain from QSBS

By Julia D. Corelli and Laura D. Warren On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 (H.R. 5297), which included among many other provisions, a short-term 100 percent exclusion (subject to per issuer limitations) from gross income of gain derived...

McDermott Will & Emery: Another Federal Court of Appeals Weighs in on the Applicability of the Six-Year Statute of Limitations Period to an Overstatement of Basis

By Gale E. Chan , Jon Finkelstein and Patrick J. McCurry The U.S. Court of Appeals for the D.C. Circuit recently reversed two U.S. Tax Court decisions and held that an overstatement of basis constitutes an omission from gross income that is subject to the six-year statute of limitations period...

Final Regs on Income Ordering Rules for Payments to Charitable Beneficiaries

For a trust to qualify for the charitable deduction, a charitable contribution must be made from gross income. [ See IRC § 642(c) .] IRC Section 642 requires tracing since the source of the charitable contribution must be gross income rather than principal. The provisions of the governing instrument...