Sales, Exchanges & Basis
Chair: Stephen Breitstone, Meltzer Lippe Goldstein & Breitstone LLP, Mineola, NY
Panelists will review recent case law and guidance on traditional sale, exchange, and basis issues.
Panelists: David Shechtman, Drinker Biddle & Reath LLP, Philadelphia, PA; John Price, Nuveen, Charlotte, NC
9:00am Divorce in a Post-Tax Reform World, with a Focus on Cross-Border Issues and 1041. Both domestically and internationally a lot remains to be settled or clarified with respect to both the basics and complex tax aspects of divorce. We will be discussing exciting questions such as: Do you still need to collect a W-8 or W-9 from an ex-spouse given alimony is no longer taxable in the hands of the recipient? Do we no longer care about the sourcing of alimony? How can you plan in a divorce from a non-resident alien when section 1041 is unavailable? This panel will also discuss using grantor trusts to shift tax liabilities. This exciting panel will be appropriate for all family law practitioners, from those just beginning in their fields to those seeking new techniques in a post-Tax Reform world.
Panelists: George D. Karibjanian, Franklin Karibjanian & Law PLLC, Boca Raton, FL /Washington, DC; Stewart L. Kasner, Holland & Knight LLP, Miami, FL
Partnership Terminations & 1031.
This panel will discuss the impact of the repeal of technical terminations under section 708(b)(1)(B) on planning section 1031 transactions. Often, there are changes in ownership of the exchanger or new entities can be created to be a continuation of the exchanger before, during, and after a section 1031 exchange. The panel will discuss planning for such changes and identify areas that may present risk under the new regime.
Panelists: Professor Bradley Borden, Brooklyn Law School, New York, NY; Stephen Breitstone, Meltzer Lippe Goldstein & Breitstone LLP, Mineola, NY; Janicelynn Asamoto Park, Proskauer Rose LLP, New York, NY
Watts This? Does No Good Deed Go Unpunished?
The founders of the well-known “Edwin Watts” chain of Florida (including Boca Raton) golf stores apparently persuaded their private equity partners that the partnership’s stores should be sold to another private equity firm at a much lower price, rather than to a large sporting goods store chain, in part to preserve employee jobs. The Tax Court held that the founders’ resulting loss was capital, rather than ordinary. In 2019, the Eleventh Circuit reversed the Tax Court in Watts and remanded for further proceedings. The panelists will discuss the issues raised by Watts, including when an ordinary abandonment loss can be claimed on a partnership interest, when a taxpayer can affirmatively apply the doctrine of substance over form, how foregone gain is to be treated for income tax purposes, and when reliance on an accountant’s determination as to ordinary abandonment loss can be relied on to defeat penalties.
Moderator: Professor Annette Nellen, San Jose State University, San Jose, CA
Panelists: Christopher Cunningham, Elliott Thomason & Gibson LLP, Dallas, TX; Daniel Reach, Alston & Bird LLP, Charlotte, NC