Podcast appearances and mentions of Brooks V Commissioner

Kenneth Brooks v. Commissioner of Internal Revenue

This week we look at a recent decision (Brooks v. Commissioner, TC Memo 2005-204) involving the impact of repaying S corporation debt during the year when, at the beginning of the year, the shareholder’s basis was less than the face amount of the note. In the case in question, the shareholders repaid such a debt in its entirety at the beginning of the year, the corporation sustained a loss during the year, and then the taxpayer loan back enough money to both return the entire repayment and then advance enough additional to give basis to take the loss. The court analyzed this case and how it differed from the case of Corneilus v. Commissioner, 58 TC 417, affd CA-5, 74-1 USTC ¶9446, 494 F2d 465, 33 AFTR 2d ¶74-1331). As we normally do, the podcast materials can be downloaded here on the ezollars.libsyn.com website—to get them click this link (if you are reading notes attached to the podcast in iTunes you’ll need to actually go to the site first to do that clicking). The Phoenix Tax Workshop will start its new year’s programs this month. I won’t be able to attend the first meeting (I’m going to be speaking at the Virginia Accounting & Auditing Conference in Roanoke, Virginia sponsored by the Virginia Society of CPAs and Virginia Tech University at that time), but I would suggest those in Phoenix consider signing up for the program. Of course, if you're close to Roanoke go ahead and sign up for that conference. My topic is on technology in the local accounting practice, but there are lots of other issues covered in those two days. The conference will be repeated in November in Virginia Beach, and I'll be there as well, so that's another option for anyone in Virginia or nearby. As well, continuing from the midweek podcast earlier this week, remember to consider the needs of the agencies serving those affected by Hurricane Katrina. The Red Cross, along with Yahoo, have established a website that makes it very easy to donate a standard amount to hurricane relief using your credit card. Please take the time to make a donation to help the relief effort, either via that site or through another relief agency. Remember that, unfortunately, these types of tragedies spawn their own scams—so be sure to check out any charity you aren’t familiar with before parting with your check. The crooks are going to be calling, sending out emails and and setting up their own websites. On the latter issue—the safest way to be sure you are at the website for the real charity is to be sure and type the address into your browser’s address bar or click only on links where you trust that those responsible for the website are both trying to send you to the proper site and have done their homework to assure that they have linked to the real charity. I expect “phishing” emails to start to hit mailboxes soon taking advantage of this situation. On an administrative aside: the text below allows me to “claim” this podcast on Odeo (an online podcast listening service). My Odeo Channel (odeo/4410b05381cc2d63)

This Podcast considers a decision (Brooks v. Commissioner, TC Memo 2005 - 204) involving the impact of repaying S corporation debt during the year when, at the beginning of the year, the shareholder's basis was less than the face amount of the note. In the case in question, the shareholders repaid such a debt in its entirety at the beginning of the year, the corporation sustained a loss during the year, and then the taxpayer loan back enough money to both return the entire repayment and then advance enough additional to give basis to take the loss.To download the podcast materials, click this link (if you are reading notes attached to the podcast in iTunes you will need to actually go to the site first to do that clicking). This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This Podcast considers a decision (Brooks v. Commissioner, TC Memo 2005 - 204) involving the impact of repaying S corporation debt during the year when, at the beginning of the year, the shareholder's basis was less than the face amount of the note. In the case in question, the shareholders repaid such a debt in its entirety at the beginning of the year, the corporation sustained a loss during the year, and then the taxpayer loan back enough money to both return the entire repayment and then advance enough additional to give basis to take the loss.To download the podcast materials, click this link (if you are reading notes attached to the podcast in iTunes you will need to actually go to the site first to do that clicking). This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com