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Why Section 179(b)(3)(A)’s Business Income Limitation Does Not Apply to Partnerships and S Corporations


Total Credits: 3 including 3 Taxes - Technical

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Categories:
ACPEN Industry Institute |  ACPEN Tax Institute |  Tax
Faculty:
David Randall Jenkins, Ph.D.
Course Levels:
Intermediate
Duration:
3 Hours
License:
Product Setting: Expires 40 day(s) after program date.

Dates


Description

This webcasts breathes new life into the argument Section 179(b)(3)(A)’s business income limitation does not apply to partnerships and S corporations. On the other side of the debate sits the Tax Court’s 1999 Hayden decision affirmed by the Seventh Circuit in early 2000. Those authorities buttress Treasury’s Section 1.179-2(c)(2) promulgation as valid. While the odds appear to be formidable to otherwise construe the business income limitation, this webcast challenges the court decisions and regulatory promulgation as inconsistent with the plain meaning of the statute and Congress’s underpinning policy objectives.

Syllabus Lesson

1. Introduction Algorithm LLC Provider David Randall Jenkins, Ph.D. Webcast Author and Lecturer 2 Lesson

2. The Hayden Decisions Lesson

3. Section 179's Taxpayer and Taxable Income Notions Lesson

4. Section 469’s Contextual Qualification of Section 179 Lesson

5. Congressional Intent Lesson

6. Conclusion

 

Basic Course Information

Learning Objectives *Recognize the Tax Court and Seventh Circuit decisions correctly held the Section 179(a) and Section 179(b)(1) and (2) taxpayer is any Section 7701(14) person subject to any internal revenue tax *Recognize the Hayden Tax Court and Seventh Circuit incorrectly harmonized the meaning of the Section 179(b)(3)(A) taxpayer between taxpayers subject to subtitle A income taxes and those taxpayers which are only subject to subtitle C employment taxes *Recognize the Hayden Tax Court and Seventh Circuit incorrectly harmonized the meaning of Section 179(b)(3)(A) taxable income between taxpayers subject to subtitle A income taxes and those taxpayers which are only subject to subtitle C employment taxes *Recognize Section 469(c)(2)’s participation conclusive presumption contextually qualifies Section 179(b)(3)(A)’s taxpayer to be limited to Section 469(a)(2) taxpayers not otherwise excluded by Section 179(d)(4) *Recognize Section 179(b)(3)(A)’s taxable income notion is correctly limited to taxable income of Section 469(a)(2) taxpayers not otherwise excluded by Section 179(d)(4)
Major Subjects *Review of the Hayden Tax Court (1999) and Hayden Seventh Circuit (2000) decisions *Review of Treasury Regulation Sections 1.179-2(c)(1) and (2) *Review of Section 179’s history including the history of its dollar and business income limitations *Review of Section 469’s activity and participation conclusive presumptions *Review of statutory construction tenets, including the role of contextual qualification in understanding Section 469’s impact on Section 179(b)(3)(A)’s business income limitation

Course Materials

Faculty

David Randall Jenkins, Ph.D.'s Profile

David Randall Jenkins, Ph.D. Related Seminars and Products


David Randall Jenkins, Ph.D., received his doctorate in accounting and a master’s in accounting with an emphasis in tax from the University of Arizona. He has taught financial, managerial, and tax accounting courses at both the graduate and undergraduate levels. Dr. Jenkins is an AACSB academically qualified business school and tax professor owing to his peer reviewed journal article publications. His company, Algorithm LLC (algorithm-llc.com), is an IRS Approved Continuing Education Provider.  Dr. Jenkins may be contacted at tucjenkins@aol.com.


Additional Info

Basic Course Information

Prerequisites It is assumed the webcast participant has achieved basic understanding of: The definition of Section 179 property Section 179(b)(1) and (2)’s dollar limitation Section 179(b)(3)(A)’s business income limitation Section 179(d)(8)’s contextual qualification of the dollar and business income limitations It is assumed the webcast has achieved the following related webcasts available through ACPEN/BPN: PSHIP001-Simple Substantial Economic Effect Regulatory Compliance FEDTX002-How to Write a Tax Advisory Opinion Letter FEDTX003-Weighing in on the Section 179 SUV Deduction
Advanced Preparation Review the Course Materials
Designed For *CPAs *Attorneys *Enrolled Agents *Enrolled Retirement Plan Agents *Self-directed Retirement Plan Fiduciaries, Custodians, and Administrators *Self-directed Retirement Plan Account Holders *Tax Return Preparers
Original Recording Date 09/25/2017
Yellow Book No
Course Developer David Randall Jenkins, Ph.D.
Date Added to Catalog 07/05/2017

Additional Information

Complaint Resolution Policy Please contact Anne Taylor for any complaints. anne.taylor@acpen.com, (972-377-8199).
Official Registry Statement

Business Professionals' Network, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org


Instructional Delivery Method Group Internet Based
Course Registration Requirements Online Registration
Refund/Cancellation Policy Please contact the ACPEN help desk 1-877-602-9877 or help@acpen.com if you wish to cancel your attendance for a previously purchased webcast and are requesting a refund or transfer.

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