by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Like-Kind Exchange?Like-Kind Exchange, also known as a 1031 Exchange or Starker Exchange, is a tax-deferred business transaction. It allows the seller of real property to avoid recognizing taxable gain when selling the property. To qualify for the tax...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Continuity Of Business Enterprise Doctrine?The continuity of business enterprise doctrine is a taxation principle in which an acquiring firm must continue the acquired firm’s business before the acquisition can qualify as a tax-deferred...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Continuity of Interest Doctrine?The Continuity of Interest Doctrine (CID) is a tax principle whereby an acquisition is qualified as a tax-deferred transaction (reorganization) if the shareholders of the acquired company hold an equity stake in the...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Loss Disallowance Rule?The Loss disallowance rule is a rule that prohibits a corporation or a consolidated group from filing a single tax return on all its subsidiaries just for tax benefits. In the United States, corporations file a single tax return on all...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Private Letter Ruling?A private letter ruling refers to a written statement that the Internal Revenue Service (IRS) issues to taxpayers in response to their request for interpretation of some of their specific complex tax situations. In other words,...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
How Does a Charitable Contributions Deduction Work?The charitable contributions tax deduction allows a taxpayer to deduct from their taxable income the amount of money or value property donated to a qualifying charitable entity. The deduction is subject to numerous...
