Every real estate owner should become acquainted with section 1031 of the Internal Revenue Code. This section allows taxpayers to defer recognition of either gain or loss when they exchange property of like-kind with another party.Before 1031, an exchange of real property would substantial
Gregory v Helvering (1935) is not the most well-known financial case, yet this Great Depression-era piece of litigation is fascinating for a number of reasons. Perhaps the most notable reason for its appeal is its relevance to more modern financial scandals.Although this case is almost a century
The sixteenth amendment, says "Congress shall have the power to lay and collect taxes on incomes, from whatever source derived without apportionment among the several States, and without regard to any census or enumeration." This amendment was ratified in 1913 and revised in 1992. It gives Congress
The tax code draws a distinction between ordinary income and income derived from the sale of a capital asset, or “capital gain.” In most instances, this distinction is straightforward and there is little confusion about whether income falls into one category or the other. However, there are some
United States v Winthrop (1969) is a case in which the court rejected the capital gain classification and ruled that certain transactions were sales made in the ordinary course of business.Understanding the distinction between business income and capital gains is critical for any taxpayer as
In 1986, a court convened to decide if the son of the owner of a particular piece of artwork belonged to the departed man's son, or the departed man's wife. While such a case would seem simple and/or open and shut, both parties staked compelling claims to what they both believed was their property.
Contract law is continually evolving so courts can decipher the purpose and intent of these contracts. This is where the benefit detriment theory comes in. A substantial agreement must exist and the parties must have freely intended to be legally bound.For instance, if a client offers your