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Abstract: 

This note considers a potpourri of recent developments relevant to investors: characterization of gain or loss; the timing of income recognition; the passive activity loss rules; taxation of phantom income from Ponzi schemes; areas where the IRS has declined to issue rulings; the net investment income tax regulations; regulations under Section 1001 on the exchange of derivative contracts; the income taxation of grantor trusts; economic substance issues; basis, capitalization, and depreciation issues; issues affecting homeowners; and employee benefi ts subject to taxation. In a presstime addendum, the note also addresses the new Camp tax reform proposal and how it might affect tax-free like-kind exchanges.

Keywords: characterization of gain/loss; income recognition; passive activity loss; phantom income; IRS no-ruling areas; net investment income tax; TD 9644; derivative contracts; TD 9639; grantor trust; economic substance; basis; capitalization; depreciation,;

Affiliations:  1: Journal of Taxation of Investment Staff.