2004 Workbook Citation Index · 2016. 6. 10. · 2004 Workbook Index 615 16 Charles A. Boyd et al....

2004 Workbook

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Citation Index

Internal Revenue Code (IRC)§1 … 152, 475–476, 510, 529§1(h) … 476§2 … 485§11 … 151–152§16(b) … 461§25B … 30§29(d)(2)(C) … 463§32 … 485–487, 495§32(c)(3)(D)(i) … 486§32(m) … 486§34(a)(1) … 449§44 … 487§55 … 461–462§56 … 461, 521§56(a)(1)(A)(i) … 252§61 … 470, 510, 512–516§61(a)(12) … 442§62 … 467, 561§63 … 467§63(c)(5)(B) … 494§67 … 467§71 … 496§71(b)(1) … 496§72 … 553–555§72(t)(2)(B) … 555§83 … 461, 521§83(a) … 461§83(c)(1) … 461§101 … 225§102 … 73§104(a) … 513, 515–516§104(a)(2) … 19, 515§105 … 219, 459, 536, 577§105(b) … 459§106 … 456§106(d) … 576–577§108 … 470§108(e)(2) … 444§119 … 417–418, 420, 456§121 … 551–552, 588–589§121(a) … 552§121(c) … 551–552§125 … 172, 222, 491, 536§132 … 351§151 … 381§152 … 381, 493§152(e) … 493–494

§152(e)(1) … 4§162 … 163, 169, 348, 431, 448,

456, 458, 471, 473, 479–480, 489–490, 561

§162(a) … 479–480, 489§162(a)(1) … 479§162(a)(2) … 383§162(a)(3) … 322§163 … 551§163(h)(2)(d) … 14§164 … 534§164(a) … 551§165 … 474, 476–477, 518, 520§165(a) … 477–478§165(c)(1) … 420§165(c)(3) … 478§166 … 467–468§167 … 466§167(d) … 88§168 … 465–466§168(k) … 257, 352, 465§170 … 161–162, 185, 196–197,

508, 536–537, 559, 561§170(c) … 185, 200§170(h) … 508§170(i) … 195§172 … 161, 179, 488§175 … 430, 449§179 … 13, 119, 126, 132–134,

155, 219, 354–356, 363, 431, 462, 465–466

§180 … 429–430§183 … 300, 518, 520, 543–546,

550–551§197 … 183§212 … 551§213 … 534–537, 555, 561§213(d) … 491§215 … 496§217 … 561§221 … 492§223 … 490, 561–562, 571, 575,

578–579§262 … 456, 489, 520§263 … 432§263A … 332§267 … 181§267(b) … 386§274 … 470–471, 473–474, 480,

483–484, 560–561§274(a) … 483

§274(d) … 470–471, 473–474§274(e)(9) … 483§274(n)(1) … 474§274(n)(2)(A) … 474§280A … 473, 550–551§280A(c)(1) … 393–394§280A(c)(6) … 13§280F … 361, 464, 466–467, 471§301 … 481§301(b)(1) … 167§312 … 163§316 … 481§351 … 122, 287§381 … 331§381(a) … 330§382 … 181§383 … 181§401(k) … 30–31, 34§401(k)(3)(A)(ii) … 221§401(k)(11) … 221§402(e)(5) … 222§403(b) … 30, 221, 232§403(b)(1) … 221§403(b)(7) … 221§404A(e) … 222§408 … 556§408(c) … 221§408(k) … 221§410(b) … 224§410(d) … 221–222§414(b) … 224§414(c) … 224§414(m) … 224§414(n)(2) … 224§419 … 287§444 … 153§453(e) … 183§467 … 181§469 … 34, 136, 397–408, 450,

542, 547–549§469(c)(7) … 397–400, 402–405,

407§469(i) … 405§475 … 474§475(f)(1) … 475§481 … 181§501 … 518, 558§501(c)(3) … 185–186, 559§501(c)(9) … 222§509(a)(3) … 501§529 … 594

CODE SECTIONS

Index 613 16Copyrighted by the Board of Trustees of the University of Illinois

his information was correct when originally published. It has not been updated for any subsequent law changes.

2004 Workbook
§530 … 594§531 … 154, 177§613A(c)(6)(C) … 463§641 … 508§642 … 508§642(c) … 508§642(h) … 84§661 … 508§661(a)(2) … 508§664 … 199§671 … 509§691(c) … 579§701 … 518§861 … 287, 500§1014 … 154§1016 … 463, 561§1031 … 22, 181, 183, 358, 465,
541–542§1033 … 358, 465§1038 … 439§1045 … 162§1202 … 162, 250§1211 … 474§1211(b) … 474–475§1212(a)(1) … 161§1221 … 477§1231 … 24, 132, 161, 178§1245 … 190, 333§1250 … 24–26, 190, 332–333§1361(b)(1)(D) … 559§1362 … 178–179, 182§1366 … 482§1374 … 154, 179, 181–182§1375 … 178–179, 182§1398 … 469§1402 … 299, 321–323, 325–326,

459, 499§1402(a)(1) … 53, 321–323,

459–460§1561(a) … 156–157§1561(a)(1) … 156§1561(a)(3) … 157§1563 … 155, 159§1563(a)(2) … 155§2031 … 507§2033 … 507§2036 … 504–506, 509§2036(a) … 506§2057 … 503§2501 … 509§2512 … 509§3121 … 497§3121(d) … 498–499§3121(d)(1) … 499§3401 … 497, 499, 501

§3402 … 528§3405 … 514§3405(c)(1)(B) … 515§3501 … 499§4941 … 521§4942(j)(3) … 187§4945 … 521§4980B … 575§6011 … 559§6013 … 527§6015 … 516–518§6039D … 224§6041 … 514–515§6053 … 528§6058 … 221§6103 … 522§6111 … 559§6112 … 559§6159 … 531§6213(b) … 278§6213(g)(2) … 278§6330 … 524–526, 530§6331 … 501§6420 … 449§6420(a) … 449§6420(c)(4) … 449§6511 … 530§6651 … 512, 515, 533, 543,

557–558§6651(a)(1) … 512, 515§6656 … 503§6662 … 63, 65, 471, 476, 510,

520, 543§6662(a) … 472, 511, 515, 532§6662(d)(2)(D) … 52§6663 … 520§6664(c) … 55§6672 … 501§6673 … 520§6701 … 197§6702 … 520§7520 … 201–203, 209, 507§7701 … 484§7702 … 226§9100 … 547

Treasury Regulations§1.031(a)-2 … 541§1.61-21(b) … 467§1.61-21(d) … 467§1.61-21(f) … 467§1.121-3 … 552

§1.121-5 … 552§1.163-10T(o)(5) … 15§1.167(a)-11 … 339§1.168(i)-6T(c)(4) … 360§1.168(i)4 … 355§1.168(k)-1T … 352§1.446-1T … 331§1.469-1T(e)(3)(ii) … 40§1.469-2(f)(6) … 12, 34§1.469-2T(f)(6) … 39§1.469-5T … 12, 35,§1.469-5T(a) … 549§1.469-9(e) … 398§1.664-1 (a)(5)(ii) … 203§1.1031 … 183§1.1031(a)-2T … 541§1.1275-2(a) … 492§1.1367-1(g) … 126–127, 148§1.1367-2(c) … 124§1.1402(a)-4(b)(2) … 460§31.2131 … 160§31.3121(d)-1(c)2) … 499

Treasury Decisions9030 … 5529109 … 559115 … 4659125 … 4929133 … 4649139 … 4849146 … 4629151 … 5419152 … 552

885 Investment Co. v. Commr. … 197A. Hafiz v. Commr. … 124Albert R. Matthews v. Commr. … 543Alfredo A. and Jane R. Galagar

v. Commr. … 39, 405, 547Allyson C. Briggs v. Commr. … 494Alpha Medical, Inc. v. Commr. … 171Antonio B. Secapure

v. Commr. … 463Batok v. Commr. … 300Beech Trucking Co. v. Commr. … 561Bobo v. Commr. … 322Bot v. Commr. … 53, 412Bruce and Judy Bailey

v. Commr. … 39, 405C. W. Todd v. Commr. … 384Carl and Floy M. Stevenson

v. Commr. … 321

REGULATIONS

COURT CASES

614 IndexCopyrighted by the Board of Trustees of the University of Illinois

This information was correct when originally published. It has not been updated for any subsequent law changes.

2004 Workbook

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Charles A. Boyd et al.v. Commr. … 388, 560

Charles and Marianne T. Andersonv. Commr. … 470

Charles W. and Nancy T. Smithv. Commr. … 496

Coady v. Commr. … 20Commr. v. Schleier … 19Corn Products Refining Co.

v. Commr. … 413Crop Care Applicators, Inc.

v. Commr. … 449Cropland Chemical Corp.

v. Commr. … 472D. M. Bennett v. Commr. … 197D. Sherman and Maxine M. Cox

v. Commr. … 321David G. and Cynthia L. Lagraff

v. Commr. … 468Delbert L. and Margaret Baker

v. Commr. … 534Dobbe v. Commr. … 420Donald A. De Fusco v. Commr. … 477Donald W. Crowell v. Commr. … 477Douglas D. Benedict

v. Commr. … 497Edward A. Bougas III v. Commr. … 7,

171Edward D. and Yolonda B. Hamilton

v. Commr. … 542Edward D. Tonitis v. Commr. … 557Eldon R. and Susan M. Kenseth

v. Commr. … 20–21Elliots, Inc. v. Commr. … 479Emmanuel L. Roco v. Commr. … 510Estate of Eugene Stone III

v. Commr. … 506Estate of Gladys J. Cook

v. Commr. … 508Estate of Hillgren v. Commr. … 505Estate of Ida Abraham

v. Commr. … 504Estate of Paul C. Gribauskas

v. Commr. … 507Estate of Rosa Shackleford

v. United States … 507Estate of Ruth A. Kimbell

v. United States … 505Estate of Thompson v. Commr. … 505Everson v. United States … 444FedEx Corp. & Subs.

v. United States … 433Fleming v. Commr. … 443Fowler Farms v. Commr. … 325Frank Chen v. Commr. … 474

Frederick C. Kumpelv. Commr. … 498

Gabe W. Stewart v. Commr. … 367Gary and Janet Luiz v. Commr. … 482George R. and Barbara H. Burrus

v. Commr. … 544George W. Moss and Gwendolyn

Arline-Moss v. Commr. … 470Gerald E. and Dorothy Johnson

v. Commr. … 459Goatcher v. Commr. … 483Gunter R. and Jay R. Wall

v. Commr. … 531Gwendolyn A. Ewing

v. Commr. … 517Hajiyani v. Commr. … 402, 405Harold and Doreen Silk

v. Commr. … 488Harris Rabinovich v. Commr. … 530Herbert and Gladys Barry

v. Commr. … 477Howard H. Thompson, Jr.

v. Commr. … 512Indopo, Inc. v. Commr. … 473Ingram Industries, Inc. & Subs.

v. Commr. … 433Interco Incorporated

v. United States … 371Ireland v. Commr. … 481J. Grant Farms, Inc. v. Commr. … 420Jacob v. Commr. … 420James J. Leonard v. Commr. … 553James M. Robinette v. Commr. … 524Jeanette M. and Tom M. Kimball

v. Commr. … 555Jeffrey R. and Sabrina M. King

v. Commr. … 4, 493Jerre J. and Paulette M. Solvie

v. Commr. … 460Jerry L. and Valerie J. Hill

v. Commr. … 532John A. and Madeline Maher

v. Commr. … 478John and Michele McGovern

v. Commr. … 554John C. and Tate M. Todd

v. Commr. … 189John P. and Teresa Hennen

v. Commr. … 53John W. Banks II v. Commr. … 20,

513Johnson v. Commr. … 411Joseph A. and Dorothy D. Moller

v. United States … 475Joseph Jones v. Commr. … 554

Joseph M. Grey Public Accountant, P.C. v. Commr. … 170

Karl and Birgit Jahinav. Commr. … 39, 402, 405

Kenneth W. and Fayetta Gravesv. Commr. … 467

Kurt S. and Juanita F. Urbanv. Commr. … 534

L. A. Miller v. Commr. … 197L. Thorne McCarty and Mary Lynne

Robertson v. United States … 495

Larkin v. Commr. … 459Leonard Pipeline Contractors, Ltd.

v. Commr. … 171Lester A. Paine v. Commr. … 477Lillie M. Petty v. Commr. … 486Mahmud Ahmed v. Commr. … 485Mamady B. Cisse v. Commr. … 486Martin Ice Cream Company

v. Commr. … 184Matti Kosonen v. Commr. … 406Max Putnam v. Commr. … 124McNamara v. Commr. … 53, 460Mediaworks, Inc. v. Commr. … 480Metro Leasing and Development

Corporation v. Commr. … 479Michael R. Loffer v. Commr. … 6, 82Michael T. Hines v. Commr. … 471Mike J. Graham Trucking, Inc.

v. Commr. … 170Mizell v. Commr. … 323–324Nathan Boatner v. Commr. … 475Nevia Campbell v. Commr. … 364Nield and Linda Montgomery

v. Commr. … 525Norris v. Arizona … 230Nu-Look Design, Inc.

v. Commr. … 170Oberman Manufacturing Co.

v. Commr. … 365Oren L. Benton v. Commr. … 469Osama A. Mowafi v. Commr. … 404Pacific Wallboard & Plaster Co.

v. United States … 533Pamela S. Cooper v. Commr. … 477Paul and Pauline Kessler

v. Commr. … 40Paul S. Lindsey, Jr. and Kristen L.

Lindsey v. Commr. … 515Pavel and Ana Dobra

v. Commr. … 392Pediatric Surgical Associates, P.C.

v. Commr. … 169Peterson v. Commr. … 419



2004 Workbook
Pine Creek Farms, Ltd.
v. Commr. … 414R. J. Salem v. Commr. … 124Ralph and Virginia G. Neely

v. Commr. … 472Ralph D. and Brenda Konchar

v. Commr. … 545Richard G. Tuck v. Commr. … 489Ricky and Suzetta J. Schmidt and

Hillside Dairy, Inc.v. Commr. … 456

Roy v. Commr. … 420Rudolph Investment Corp.

v. Commr. … 444Schmidt v. Commr. … 419Scott William Katz v. Commr. … 462Selfe v. United States … 483Sharon M. and Richard C. Rivera

v. Commr. … 550Sigitas Banaitis v. Commr. … 20Smith v. Commr. … 433Solvie v. Commr. … 411Specialty Transport & Delivery

Services, Inc. v. Commr. … 170, 497

Stephen M. and Rebecca A. Kernsv. Commr. … 481

Sudheshna Purushothamv. Commr. … 510

Superior Proside, Inc.v. Commr. … 170

Sutherland Lumber-Southwest, Inc.v. Commr. … 484

Thomas E. and Susan L. Truskowskyv. Commr. … 548

Thomas J. Northen, Jr., et ux.v. Commr. … 365

Townsend Industries, Inc.,v. United States … 348

Tschetter v. Commr. … 419United States v. Estate of

Grace … 505United States v. Robert W.

Boyle … 533United States v. Roy W.

Wooten … 560United States v. Smith … 482Vaughan v. Commr. … 470Verna Doyel v. Commr. … 516Veterinary Surgical Consultants, P.C.

v. Commr. … 170Victor Woods v. Commr. … 473Waterfall Farms, Inc.

v. Commr. … 419

Water-Pure Systems, Inc.v. Commr. … 170

Weeldreyer v. Commr. … 419Welter v. Commr. … 414White Ferry, Inc. v. Commr. … 179Wiechens v. United States … 448William C. and Cheryl M. Fowler

v. Commr. … 405Wylie v. United States … 63Yeagle Drywall Company, Inc.

v. Commr. … 170

60-189 … 38367-185 … 53570-91 … 47873-529 … 38375-302 … 53576-481 … 53577-17 … 47780-364 … 51493-86 … 3842003-54 … 3662003-123 … 5082004-27 … 518–5192004-28 … 5192004-29 … 5192004-30 … 5192004-32 … 519–5202004-33 … 5192004-41 … 5012004-45 … 4902004-64 … 509

74-44 … 17087-57 … 356, 359–36096-64 … 38898-16 … 50199-17 … 4752000-15 … 517–5182000-37 … 5422002-9 … 330–331, 3402003-16 … 5562003-35 … 5282003-53 … 1992003-60 … 1992003-76 … 5612003-80 … 385, 387–3882004-11 … 331–333, 340, 3552004-20 … 466–4672004-29 … 4742004-51 … 542

Chief Counsel Advice200338010 … 4832004411042 … 487

IRS Information Letters2003-0202 … 537

IRS Letter Rulings200243057 … 197200338010 … 461200338011 … 461200344022 … 514200401020 … 556200401023 … 556200401024 … 556200401025 … 556–557200402028 … 556–557200403049 … 551200404036 … 547200404053 … 556–557200406054 … 556–557200423015 … 475200430030 … 503

IRS News ReleasesIR-2003-145 … 528IR-2004-26 … 518IR-2004-42 … 558IR-2004-47 … 499IR-2004-70 … 503IR-2004-81 … 521IR-2004-86 … 189IR-2004-87 … 520IR-2004-89 … 522IR-2004-95 … 524IR-2004-105 … 527

IRS Notices2000-4 … 4652002-24 … 2222004-12 … 5012004-13 … 5182004-23 … 5692004-27 … 3, 4762004-28 … 5212004-30 … 5592004-39 … 30, 475–4762004-48 … 4632004-50 … 584

REVENUE RULINGS

REVENUE PROCEDURES

OTHER IRS RELEASES



2004 Workbook

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IRS Private Letter Rulings8736052 … 1798822064 … 410

IRS Publications3, Armed Forces’ Tax Guide … 1115, Circular E, Employer’s Tax

Guide … 306, 31015-B, Employer’s Tax Guide to

Fringe Benefits … 34217, Your Federal Income

Tax … 52778, Cumulative List of

Organizations described in §170(c) … 185–187, 538

225, Farmer’s Tax Guide … 410, 431

334, Tax Guide for Small Business … 306

463, Travel, Entertainment, Gifts, and Car Expenses … 308

504, Divorced or Separated Individuals … 6

526, Charitable Contributions … 536

535, Business Expenses … 306536, Net Operating Losses (NOLs)

for Individuals, Estates, and Trusts … 488

538, Accounting Periods and Methods … 306

547, Casualties, Disasters, and Thefts … 321

561, Determining the Value of Donated Property … 536, 538

584, Casualty, Disaster, and Theft Loss Workbook … 321

584B, Business Casualty, Disaster, and Theft Loss Workbook … 321

587, Business Use of Your Home … 13

901, U.S. Tax Treaties … 377936, Home Mortgage Interest

Deduction … 18970, Tax Benefits for

Education … 4921457, Actuarial Values

Book … 2011542, Per Diem Rates … 3864048, Electronic Federal Tax

Payment System (EFTPS) … 292, 503

4302, A Charity’s Guideto Car Donations … 199, 537

4303, A Donor’s Guideto Car Donations … 199, 537–538

IRS Forms706, U.S. Estate (and Generation-

Skipping Transfer) Tax Return … 98–101, 199, 503

709, U.S. Gift (and Generation-Skipping Transfer) Tax Return … 205

940, Employer’s Annual Federal Unemployment (FUTA) Tax Return … 497

941, Employer’s Quarterly Federal Tax Return … 57, 284, 290–291, 497, 503

990, Return of Organization Exempt from Income Tax … 297–298, 522

1040, U.S. Individual Income Tax Return … 2, 8, 16, 31, 73, 79, 96, 110, 113–114, 160, 202, 218, 302–304, 315, 326, 374–375, 381–382, 398, 440, 458, 467, 512, 532, 557, 591–593

1040-NR, U.S. Nonresident Alien Income Tax Return …374–375, 377–378, 381–383

1041, U.S. Income Tax Return for Estates and Trusts … 73–76, 80, 82, 84–85, 90, 92, 95–96, 105, 108–109, 532

1041-A, U.S. Information Return Trust Accumulation of Charitable Amounts … 205

1098, Mortgage Interest Statement … 14–17

1099 … 2, 35, 232, 388, 409–410, 416, 449, 511

1099-A, Acquisition or Abandonment of Secured Property … 409

1099-B, Proceeds from Broker and Barter Exchange Transactions … 256

1099-C, Cancellation of Debt … 470

1099-G, Certain Government and Qualified State Tuition Program Payments … 410

1099-MISC, Miscellaneous Income … 301, 307, 497, 511–512, 515

1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc. … 210

1120, U.S. Corporate Income Tax Return … 292–293

1120-S, U.S. Income Tax Return for an S Corporation … 292, 497, 561

2106, Employee Business Expense … 138, 142–143, 591–592, 594

2553, Election by a Small Business Corporation … 484

2848, Power of Attorney and Declaration of Representative … 339, 522

3115, Application for Change in Accounting Method …329–333, 339, 341–342, 357, 366

4136, Credit for Federal Tax Paid on Fuels … 449

4562, Depreciation and Amortization … 13, 132, 136, 357

4684, Casualties and Thefts … 3154797, Sales of Business

Property … 126, 131, 134–135, 315, 440, 468, 475

4835, Farm Rental Income and Expenses … 325–326, 410

5227, Split-Interest Trust Information Return … 205, 208

5303-B, Health Savings Trust Account … 563

5305-B, Health Savings Trust Account … 563

5305-C, Health Savings Custodial Account … 568

5500, Annual Return/Report of Employee Benefit Plan … 220–225, 239

5500-EZ, Annual Return of One Participant (Owners and their Spouses) Retirement Plan … 224

FORMS & SCHEDULES



2004 Workbook
6251, Alternative Minimum Tax —
Individuals … 244, 246–248, 255

6781, Gains and Losses from §1256 Contracts and Straddles … 416

8233, Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alient Individual … 378

8275, Disclosure Statement … 51, 53, 70

8275-R, Regulation Disclosure Statement … 51

8282, Donee Information Return (Sale, Exchange, or Other Disposition of Donated Property) … 190, 198

8283, Noncash Charitable Contributions … 197–198, 536, 538

8332, Release of Claim to Exemption for Child of Divorced or Separated Parents … 4, 6, 8, 493–494

8554, Application for Renewal of Enrollment to Practice Before the Internal revenue Service … 58

8582, Passive Activity Loss Limitations … 12–13, 34–35, 39–41, 136–137, 142

8633, Application to Participate in the IRS e-file Program … 293, 298

8716, Election to Have a Tax Year Other Than a Required Tax Year … 153

8821, Tax Information Authorization … 522

8822, Change of Address … 2818829, Expenses for Business Use of

Your Home … 3948832, Entity Classification

Election … 4848862, Information to Claim Earned

Income Credit After Disallowance … 285

8873, Extra-territorial Income Exclusion … 422, 425, 427

8880, Credit for Qualified Retirement Savings Contributions … 30–31, 33

8889, Health Savings Account … 561, 571–574, 576

12153, Request for a Collection Due Process … 525, 530

CCC-1099-G, Certain Government and Qualified State Tuition Program Payments … 410

I-20, Certificate of Student Status … 381

SS-5, Application for a Social Security Number Card … 377

W-2, Wage and Tax Statement … 8, 256, 348, 350, 489, 510, 528, 576

W-7, Application for IRS ITIN … 275, 377

IRS Schedules1040, U.S. Individualized Income

Tax ReturnSchedule F, Profit or Loss from

Farming … 410, 414, 422, 425, 427, 449



2004 Workbook

T

Index

Abusive tax avoidance transactions … 287

Accumulated adjustments accounts (AAA) … 181

Accumulated earningspenalty … 177

Adequate disclosure … 51, 53, 55Agricultural issues … 421, 448

discharge of indebtedness … 442entity owned residence … 420extra-territorial income

exclusion … 421farm subsidy payments … 409farmland purchase

deductions … 444–445farmland rental … 459fences … 445fringe benefits … 456hedging commodities … 413–414,

416land partition … 437land rental … 411land sales … 437landscaping and land

improvements … 444ledger balances … 443meals and lodging … 417–418original interest discount … 434repairs … 431, 433repossessions … 439residential rental property … 445rolling over lines-of-credit … 434self-employment tax … 410soil conditioning deduction … 429,

444Starlink corn settlements … 447technology agreement … 446value-added cooperative

distributions … 412Aliens … 373

deductions … 383exemptions … 383income tax treaty … 376nonresident … 374, 381, 383resident … 374, 381substantial presence test

… 375–376tax identification number … 377

Alternative depreciation system (ADS) … 252

Alternative minimum tax (AMT) … 243

C corporations … 266depreciation … 252exclusions and deferral reference

chart … 267gain adjustments … 254incentive stock options … 256,

263, 461individuals … 244investment interest expense … 248itemized deductions … 263long-term capital gains … 250medical and dental

expenses … 247minimum tax credit … 258miscellaneous itemized

deductions … 249mortgage interest deduction … 247real property tax … 247

American Institute of Certified Public Accountants (AICPA) … 64

Annuities … 225, 231Appraisal

asset approach … 368fees … 372income approach … 368market approach … 368qualified appraisal … 370software … 369validity … 371

Appreciated assetsfractionalizing … 180split interest purchase of real

estate … 181Attorney fees

class action awards … 514Automobiles

charitable deductions … 198

Bad debt … 468shareholder loans … 467

Bankruptcy … 469Basis

annual adjustment … 124, 128gift … 122multiple loans … 128stock … 122

Bonus depreciationelecting out … 352original use … 353state adjustments … 355

Bonuses … 171Brother-sister corporations … 158

ownership tests … 158Business expenses

cell phone expense … 470meals and entertainment … 474personal expenses … 489substantiation … 473unreimbursed partnership

expenses … 471yacht expenses … 480

Business records … 309Bypass trust … 83

C corporationsappreciated assets … 153charitable contribution

deductions … 161controlled groups … 155debt vs. equity … 167dividends-received

deductions … 162double taxation … 153fiscal year … 151fringe benefits … 172interest vs. dividends … 168key employee benefits … 172personal holding company … 154personal service

corporations … 153post JGTRRA of 2003 … 151reasonable compensation

… 168–169S election … 154small business stock gain partial

exclusion … 162tax rates … 152

Cafeteria plans … 223Capital gains and losses

investor vs. trader … 474loss deductions … 476RIC and REIT dividends … 475

capital loss … 1Car expenses … 308Carryover … 191

ordering rules … 191

A

B

C



2004 Workbook
Casualty
gains … 318losses … 313

basis adjustment … 317calculation … 314deductible loss

limitations … 313disaster areas … 318flood damage … 477repair expense … 317

Cattle breeding … 548Certified Practitioner of

Taxation … 67Charitable gift annuity … 209

bargain sales rules … 209funding … 209

Charitable giving … 18530% organization … 185–18650% organization … 185–186appraisals … 198automobiles … 198, 537benefit-received rule … 196capital gain property … 188carryover … 191contributions … 187, 536

limits … 195deductions

limitations … 185timing … 195trusts … 508

foundationnon-operating … 187operating … 187private … 187

ordering rules … 191ordinary income property … 190tangible personal property … 190

Charitable remainder annuity trust (CRAT) … 200

Charitable remainder trust … 199deduction … 202distributions … 203funding … 202inter vivos trust … 199remainder interest … 201testamentary trust … 199

Charitable remainder unitrust (CRUT) … 200

Circular 230 … 55–59, 67§10.20 … 59§10.21 … 60§10.29 … 60§10.30 … 61§10.30(a)(2) … 62§10.31 … 63

§10.33 … 66§10.34 … 63, 67§10.35 … 65–66§10.36 … 66

Civil Rights Act of 1964 … 513Class action lawsuits … 2

securities violations … 1Combat pay exclusion … 8

designated combat zones … 9Commodity Credit Corporation

(CCC) … 409Common/collective trust

(CCT) … 224Compensation

bonuses … 171contingent compensation … 171inadequate compensation … 169

Conservation Reserve Program (CRP) … 410

Constructive dividend … 481Contingent attorney fees … 19, 513

AGI implications … 21Contract dispute payment … 515Controlled group corporations … 155,

157Corporations

unreasonable compensation … 479yacht expenses … 480

Criminal Investigation (CI) division … 43, 58

Custodial parentdivorce decree … 6release of exemption … 4Special support test rules … 4

Debtcancellation of … 470

Deductible loss limitations … 313Deductions

charitable donations … 537continuing care medical

expenses … 534education loan interest … 492home exercise equipment … 537medical expense … 536NOL carryback waiver … 488state tax … 534See also Charitable giving

Dependency issues … 493Depletion rate

oil and gas … 463

Depreciation … 352, 462, 464, 466bonus depreciation … 352, 355changing … 355excess basis … 360exchanges and involuntary

conversion … 357IRC §179 deduction … 354listed property limits … 361method

automatic change request … 330

change of … 329, 340two-year rule … 332

mid-quarter convention … 361recovery period … 356replacement property … 360

Direct filing entity (DFE) … 224Disabled access credit … 487Disaster areas … 318Discounted cash flow (DCF) … 368Distributable net income (DNI)

… 74–75Dividend taxation … 28Divorce … 495

alimony … 496decree … 6legal fees

deductibility … 7

Earned Income Tax Credit (EITC) … 10, 43, 273

gambling winnings … 486non-filers … 274outreach and education … 273resident alien dependent … 486

Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) … 30, 243, 258

Economic hardship … 57Education loan interest … 492EITC. See Earned Income Tax Credit

(EITC)Electronic federal tax payment system

(EFTPS) … 284, 288federal tax deposit penalty

relief … 290Electronic filing … 286Embezzlement income … 512Employee Retirement Income Security

Act (ERISA) … 220, 222Employment tax issues

employment tax practices … 499worker classification … 497

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Entertainment … 308Entity classification election … 484Estate assets

valuation … 367Estate tax … 73

bypass trust … 83capital loss … 88depreciation … 88, 92distributable net income … 75dividend allocation … 76estimated tax … 95excess deductions … 84individual retirement accounts

(IRA) … 82, 101inheritance proceeds … 73installment

obligation … 95sale … 109

interest allocation … 76living trusts … 82marital trust … 105net operating loss … 85nonprobate assets … 74taxable year … 76termination of estate … 84

Ethicscode … 49definition … 49

Excess basis … 360Extra-territorial income

exclusion … 421calculation … 423foreign sale and lease

income … 422foreign trading gross

receipts … 421qualifying foreign trade

property … 422

Fact Sheet FS-2004-12 … 518Failure to deposit penalty … 503Failure to file … 57Fair market value (FMV) … 366Family limited partnerships (FLP)

… 504–505Family-owned business

interests … 503Farm subsidy payments … 409

commodity certificates … 409Federal tax deposit penalty

relief … 290

Federal Unemployment Tax Act (FUTA) … 160

Federal Insurance Contributions Act (FICA)

student exception … 501Filing status

head of household … 485resident alien spouse … 485

Flexible spending plansadoption assistance

programs … 223cafeteria plans … 223educational assistance plans … 223

Foster and respite care providers … 391, 393

deductions … 393–394qualified foster individual … 391types of income … 391

Fringe benefits … 172, 342company vehicle … 348key employee benefits … 172reporting … 349

Frivolous returns … 64

Gainsdeferral … 183reduction … 183

Gambling winnings … 486Gifts … 308Group Insurance Arrangement

(GIA) … 224

Healthcare savings account (HSA) … 561, 568, 581, 584

cafeteria plan … 568COBRA … 575contributions … 568, 571coordinating with similar

programs … 576death … 578distributions … 574, 576, 586divorce … 578eligibility … 570employer contributions … 572, 577rollovers … 578tax consequences … 571transitional relief … 575

High deductible health plan (HDHP) … 568

Hobby … 299how to report … 302transition to business … 305

Home equity debt … 14Home office deduction … 13Home refinancing … 15Huntsman … 17

Incentive stock options (ISO) … 256, 461

Income in respect of decedent (IRD) … 73

Income shifting … 169Individual retirement account

(IRA) … 82Individual taxpayer identification

number (ITIN) … 275, 377program … 275, 377

Innocent spouseequitable relief … 516–517

Installment sale … 24Insurance proceeds … 314Intentional defective grantor

trusts … 509Inter vivos trust … 82, 199Internal Revenue Service (IRS)

20 most serious problems taxpayers encounter … 271

appeals … 283criminal investigation (CI) … 282electronic filing … 286examination changes … 285

IRS Fact Sheet FS-2004-12 … 518IRS procedures

audit … 518collection due process … 524collections due … 530e-services … 522installment agreement … 531penalties … 532strategic plan … 524tax schemes … 520technical guidance … 527tip compliance … 528

ITIN. See Individual taxpayer identification program

Job Creation and Workers Assistance Act of 2002 (JCWAA) … 258

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Jobs and Growth Tax Relief
Reconciliation Act of 2003 (JGTRRA) … 21, 28, 151, 177, 243, 352, 476

Joint returnssame-sex couples … 527

Land rentalfamily entity … 411

Life insurance … 225–226cash value distribution … 230non-qualified … 225policy maturation … 229taxable gain … 226

Like-kind exchange (LKE) … 183, 465, 541–542

tangible personal property … 541Limited liability company (LLC)

levy … 501Long-term capital gains … 21Lottery installment payments … 507

Malpracticelawsuits … 71reason for claims … 71

Market Segment Specialization Program (MSSP) … 399

Marketed tax shelter … 65Material participation test … 549Math error authority … 278Medicare … 213

discount drugs … 217eligibility … 214enrollment … 217inpatient … 214outpatient … 215Part A … 214Part B … 215structure … 213

Medicare Prescription Drug, Improvement, and Modernization Act of 2003 … 561

Medicare Reform Act of 2003 … 216Military Family Tax Relief Act of

2003 … 588dependent care assistance … 590home sale exclusion … 588other provisions … 595overnight travel … 590

qualified tuition programs … 594Military taxation issues

combat pay exclusion … 8combat zone injuries … 9earned income tax credit … 10filing extension … 9reservist travel … 591spouse filing of taxes … 10

Minimum tax creditcarry forward … 261

Minimum tax credit (MTC) … 258Modernized e-file (MeF) … 292

charities and non-profits … 297Modified accelerated cost recovery

system (MACRS) … 444More likely than not standard … 51Multiple corporations

payroll taxes … 160

National taxpayer advocate … 271audit response … 280navigating the IRS … 279

Negligence penalty … 51Net operating loss (NOL) … 255News Release IR-2004-26 … 519Non-filing … 272Nonprobate assets … 74North American Industry

Classification System (NAICS) … 541

Not for profit … 542

Office of Professional Responsibility (OPR) … 55

Original interest discount (OID) … 434

Passive activitycattle breeding … 548losses … 34

definition … 35equipment rental … 39real estate professionals … 39rentals … 35specific examination

issues … 39material participation test … 549real estate professional … 547

rental real estate … 547Passive income rules … 178Passive investment … 178Payroll taxes … 170

overpayment … 160Penalties … 43, 52, 55

good faith defense … 55reasonable cause … 55

Pension Benefit Guaranty Corporation … 7

Personal holding companyJobs and Growth Tax Relief

Reconciliation Act of 2003 (JGTRRA) … 177

Personal service corporations (PSC) … 153

Personal use of corporate aircraft … 483

Personal use test … 327Pooled Separate Account

(PSA) … 224Preferred stock dividends … 176Prepaid deductions … 28Presidentially declared disaster

areas … 318Private installment sale … 183Profit motive … 300, 544

test … 545Prop. Treas. Reg. §1.664-1 … 204

Qualified domestic relations order (QDRO) … 6

Qualified organizations … 18530% organizations … 18650% organization … 186non-operating foundations … 187operating foundations … 187private foundations … 186–187public charities … 185

Qualified planlife insurance … 230

Real Estate Investment Trust (REIT) … 231

Real estate professionals … 39, 397material participation … 400passive activity loss … 397, 399qualifying real property trade or

business … 400Realistic possibility … 63

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Reasonable basis standard … 51Reasonable compensation … 168Recordkeeping

basic requirements … 307business records … 309car expenses … 308entertainment … 308specific requirements … 308transportation … 308travel … 308

Refund Anticipation Loan (RAL) … 43

Remainder interest … 201Rentals … 321

equipment … 326farm property … 323home office deduction … 13passive v. nonpassive activity … 12personal use test … 327rental to employer … 13vacation property … 326

Report Generating System (RGS) … 278

Repossessions … 439Residence

gain on sale … 551sale of personal … 552vacation home … 550

Resident aliens … 510Retirement … 224

60-day rollover waivers … 556annuities … 231asset depletion … 237calculating needs … 233early distribution penalty … 554funding … 225income management … 219life insurance … 226Medicare … 213owner-only business … 238plan loans … 553

Retirement Savings Contribution Credit … 30

Return client records … 58Revenue Act of 1978 … 498Revenue Reconciliation Act of

1993 … 162

S corporation§179 … 132§179 recapture … 134–135allocation … 120basis … 122, 124, 128

built-in gains … 181C corporation accumulated

earnings … 178conversion to … 181distributions … 131election to use special

accounting … 121loan basis … 124loan repayment … 130office in shareholder’s home … 142ordinary income … 133passive income … 182passive losses … 136reporting requirements … 132–133sale and liquidation … 183shareholder loans … 137, 140shareholders … 119, 141termination … 143

Safe harbor test … 300Sanctions … 56

censure … 56disbarment … 56noncompliance

issue … 56pattern … 56significance … 56

reprimand … 56suspension … 56

Savings Incentive Match Plan for Employees (SIMPLE) … 221

Self-employment (SE) … 299Self-employment tax … 410

Conservation Reserve Program (CRP) … 410

Self-rental rule … 12Service Industry Code (SIC) … 541Settlement … 2Shareholder loan guarantees … 482Shareholder loans … 137, 140, 176Shareholders

active income … 141bad debt … 143distributions … 143expenses … 141office-in-home … 142stock losses … 144stock purchase loan … 142

Single Premium Deferred Annuity (SPDA) … 231

Single Premium Immediate Annuity (SPIA) … 231

Small Business Job Protection Act (SBJPA) of 1996 … 516

Small business/self employed (SB/SE) division … 43

Social Security … 218

Social Security Reform Act of 1983 … 218

Standard deductiondependents … 494

Standard meal allowance … 490State Unemployment Tax Act

(SUTA) … 160Stock options … 521Stretch IRA … 237Substantial authority … 51–52, 451

determination letters … 52disclosure … 53evaluation of authorities … 451letter rulings … 52nature of analysis … 452standard … 51technical advice

memorandum … 52

Tax exempt compensation … 521Tax fraud

nonfiler … 557Tax planning strategies … 30Tax Reform Act of 1986

(TRA) … 154, 243Tax scams … 558Tax shelters … 43, 65, 287, 520

abusive … 43Tax Talk Today … 67Taxpayer assistance centers

(TAC) … 282TC Memos

2003-49, February 26, 2003 … 1702003-50, February 26, 2003 … 1702003-51, February 26, 2003 … 1702003-52, February 26, 2003 … 1702003-53, February 26, 2003 … 170

TD News Release JS-1287 … 529Telemarketing … 62

Do Not Call registry … 62Tentative minimum tax (TMT) … 246Testamentary trust … 199Title 18 USC §4241(d) … 560Trade or business … 299Transportation … 308Transportation industry

employees … 383federal per diem rate … 385high-low per diem rate … 386incidental expenses … 387per diem rate … 387special transportation workers

rules … 387

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substantiation requirements … 385tax home … 383temporary assigment … 384
Travel … 308Travel and transportation expenses

per diem payments … 560standard mileage … 561

Underpaying … 272Underreporting … 272Unethical behavior … 51Unreasonable compensation … 479

Valuationappraisal … 367appraisal methods … 368casualty loss … 367estate assets … 367insurance claims … 367property class … 366purchase or sale of business … 366qualified appraisal … 370software … 369unique assets … 369

Value-added cooperative distributions … 412

Voluntary Employees Beneficiary Association (VEBA) … 222

WorksheetsS corporation stockholder basis

carryforwardwith election … 148–149

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2004 Workbook Citation Index · 2016. 6. 10. · 2004 Workbook Index 615 16 Charles A. Boyd et al....

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Transcript of 2004 Workbook Citation Index · 2016. 6. 10. · 2004 Workbook Index 615 16 Charles A. Boyd et al....