Federal Tax Update: Schedule D Problem

https://vimeo.com/337037074

https://www.currentfederaltaxdevelopments.com/podcasts/2019/5/18/2019-05-20-schedule-d-problem

This week we look at

• Review Wolters Kluwer IRS response and other issues

• IRS releases a new worksheet for computing tax when there are 25% or 28% gains

• Tax Court finds IRS did not have authority to find Medicare difficulty payments nontaxable in Notice 2014-7

• CA10 agrees with Tax Court that S corporation cannot accrue wages on participants

• Taxpayer materially participated in activity under facts and circumstances test