Archive - December 2015
The PATH Act of 2015 makes the 100% QSBS gain exclusion permanent
Protecting Americans from Tax Hikes (PATH) Act of 2015 was just signed by the President and is officially the law. The Act retroactively increases the Sec. 1202 QSBS gain exclusion for stock acquired in 2015 and prospectively makes the 100% exclusion permanent. Before the enactment of the PATH, only stock acquired before December 31st 2014 qualified for the 100% exclusion, thus, leaving out purchases made during 2015. Under the Sec. 1202 QSBS rules, the gain eligible for exclusion could be as high as $10 million. Any gain above that amount is taxed at a maximum rate of 28 percent....
December 22, 2015 read more
In FFA 20154703F Chief Counsel blesses the taxpayer’s hedging transactions
The above referenced field advice was released a few days ago. The advice is heavily redacted but nonetheless, some useful information could be gleaned from it regarding the application of the hedging transactions identification rules and their interplay with the straddle rules. By way of background, various rules can negatively impact futures and forward hedges, such as the Sec. 1092 straddle rules, the Sec. 1256 mark-to-market rules and the capitalization rules of Sec. 263(g). Some of these issues can be avoided by identifying specific positions as hedging transactions under Reg....
December 03, 2015 read more