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EXECUTIVE SUMMARY * In certain cases, termination payments and settlement damages paid to an employee are not considered wages. * An employer's withholding obligation may be reduced based on either [...]

The acquisition of real property leases continues to provide tax planning opportunities. While leases are not intangibles amortizable under Sec. 197, changes enacted by the Revenue Reconciliation Act of 1993, [...]

A need exists for flexible compensation arrangements that can (1) provide performance incentives and aid in the retention of personnel without straining cash flow, (2) maximize retirement savings by using [...]

Taxpayers can defer gain recognition on property transfers by either contributing property to an entity or exchanging for like-kind property. Each transfer method will produce different depreciation deductions for the taxpayer. The method selected depends on the particular needs of the taxpayer; different transfer methods may preserve an ACRS election, reduce alternative minimum tax, or avoid short year rules. The timing of the transfer may also avoid additional depreciation limitations.

Partners in a business partnership can reduce their tax burdens by timing their partnership distributions carefully. Partners' adjusted basis is determined by making adjustments to their original contribution. The necessary adjustments include: adding additional contributions; subtracting current distributions; adding partnership taxable income, exempt income and excess deductions; and subtracting nondeductible expenses, partnership losses, and advances. The main goal in planning distributions is to avoid or delay recognizing partners' gains. Gains can be avoided or delayed by: delaying distributions if they will exceed partners' adjusted basis; making any distributions before the partnership's tax year-end property distributions; and distributing loans or promissory notes to partners if cash distributions would make them recognize a gain.

Congress' 1984 amendment to Section 195 significantly reduced confusion about start-up expenses and provided major taxpayer benefits. Planning is needed to make the most of these opportunities. The taxpayer must choose to amortize start-up costs in the year during which a trade or business begins, so opportunities must be recognized quickly. The tax definitions and roles of start-up, investigatory, and pre-opening expenses are described.