TXX5768

In the tax law, we have rules that are labeled as "safe harbors." What is a safe harbor? Is IRC1237 a safe harbor? How and for what?

What are the three requirements that must be met before IRC1237 applies?

What constitutes "substantial improvements" under IRC1237? Do you think 1237 will apply to many taxpayers who sub-divide land? Why or why not?

Explain the holding period rule under IRC1237.

Explain the 5% rule under IRC1237.

Explain the 5 year rule under IRC1237.

No one student should attempt to answer all of the above. One student should pick no more than two of the above.