Recognition of Passive Activity Losses in a Complete Redemption of S Corporation Stock

2016 ◽  
Vol 14 (1) ◽  
pp. 43-57
Author(s):  
Claire Y. Nash
Keyword(s):  
Certified Public Accountants ◽  
Legal Analysis ◽  
American Institute ◽  
Administrative Authority ◽  
Legislative History ◽  
History Of ◽  
Public Accountants ◽  
Section 302 ◽  
Treasury Department

ABSTRACT Under Section 302(b)(3), a taxpayer who redeems all of the stock he owns in an S corporation is treated as having surrendered his stock in a fully taxable exchange. The taxpayer generally recognizes the gain, or loss, realized on the exchange. Moreover, if the interest he redeems is an interest in a passive activity, Section 469(g) re-characterizes a loss on the exchange, and suspended passive activity losses (PAL) from the activity, as losses not from a passive activity, thus freeing up the suspended losses. However, when the taxpayer and the S corporation are related parties, Section 469(g)(1)(B) prohibits recognition of suspended PAL until the S corporation disposes of the “interest acquired” in a taxable transaction. Following a redemption, disposition of the “interest acquired” is not literally possible. Consequently, taxpayers question whether related-party S corporation shareholders lose the ability to recognize suspended PAL when they redeem their stock. For several years, the American Institute of Certified Public Accountants (AICPA) Tax Division has requested guidance from the Treasury Department regarding this question and listed this issue as the top priority item affecting S corporation taxation. The AICPA posits that following a 302(b)(3) redemption, suspended PAL of related-party shareholders disappear. Is the AICPA's literal application of the statute the correct approach? The legal analysis herein answers the question raised by the AICPA and taxpayers and provides guidance to Treasury in drafting administrative authority that is consistent with existing statutes and the legislative history of Section 469. Although Section 469(g)(1)(B) is problematic for related-party S corporation shareholders, their suspended PAL do not disappear. Section 469(g)(1)(B) postpones the recognition of suspended PAL in accordance with the aggregate approach when there is a complete redemption of a related-party S corporation shareholder's interest under Section 302(b)(3).

THE RECENT HISTORY OF CORPORATE AUDIT COMMITTEES

1986 ◽  
Vol 13 (2) ◽  
pp. 109-124 ◽  
Author(s):  
Brenda S. Birkett
Keyword(s):  
Securities And Exchange Commission ◽  
Audit Committees ◽  
Recent History ◽  
Certified Public Accountants ◽  
Social Environments ◽  
American Institute ◽  
History Of ◽  
Public Accountants

This article explores factors in the financial, legal and social environments that have significantly influenced the development of corporate audit committees. Particular emphasis is given to the actions of the Securities and Exchange Commission and the American Institute of Certified Public Accountants.

ALVIN R. JENNINGS: MANAGING PARTNER, POLICY-MAKER, AND INSTITUTE PRESIDENT

2015 ◽  
Vol 42 (1) ◽  
pp. 85-104 ◽  
Author(s):  
Martin E. Persson ◽  
Vaughan S. Radcliffe ◽  
Mitchell Stein
Keyword(s):  
Policy Maker ◽  
Certified Public Accountants ◽  
American Institute ◽  
Academic Field ◽  
Accounting Research ◽  
Public Accountants

Alvin R. Jennings (1905–1990) was a rare breed of an accountant. He was trained as a practitioner and rose to become a managing partner at Lybrand, Ross Bros. & Montgomery, but he kept a constant watch on the academic field of accounting research. Jennings served on the influential American Institute of Accountants' Committee on Auditing Procedure (1946–49) and later as the president of the American Institute of Certified Public Accountants (1957–58). This paper explores these activities and Jennings' contribution to the professional, academic, and institution discourse of the accounting discipline.

DIGITIZING THE ACCOUNTING HISTORIANS JOURNAL: A SHORT HISTORY

2006 ◽  
Vol 33 (2) ◽  
pp. 157-168 ◽  
Author(s):  
Royce D. Kurtz ◽  
David K. Herrera ◽  
Stephanie D. Moussalli
Keyword(s):  
Full Text ◽  
Certified Public Accountants ◽  
University Of Mississippi ◽  
Short History ◽  
American Institute ◽  
Federal Grant ◽  
Public Accountants ◽  
The University ◽  
Copyright Permission

The University of Mississippi Library has digitized the Accounting Historians Journal from 1974 through 1992, cover-to-cover. The American Institute of Certified Public Accountants' gift of their library to the University of Mississippi was, fortuitously, the impetus for the AHJ digitizing project. A complicated chain of events followed which included discussions with the Academy of Accounting Historians for copyright permission, an application for a federal grant, negotiations with software vendors, and decisions about search capabilities and display formats. Each article in AHJ is now full-text searchable with accompanying PDF page images.

EARLY ENCOUNTERS BETWEEN CPAs AND THE SEC*

1979 ◽  
Vol 6 (1) ◽  
pp. 29-37 ◽  
Author(s):  
John L. Carey
Keyword(s):  
Vice President ◽  
Gold Medal ◽  
Certified Public Accountants ◽  
American Institute ◽  
Public Accountants

The recollections of John L. Carey about the policies and politics in professional circles during the very important period when the Securities Exchange Commission first came into being. Mr. Carey served the American Institute of Certified Public Accountants in various capacities from 1925 to 1969, including editor of The Journal of Accountancy and Administrative Vice-president, and received the Institute's gold medal for distinguished service to the profession.

scholarly journals Teoria da Entidade versus Teoria dos Fundos: uma análise da evidenciação das demonstrações financeiras de uma organização sem fins lucrativos

2013 ◽  
Vol 7 (2) ◽  
pp. 4-21
Author(s):  
Gislaine Aparecida Santana ◽  
Romualdo Douglas Colauto ◽  
Cleberson Luiz Santos de Paula ◽  
Gideão José Pinto Oliveira
Keyword(s):  
Certified Public Accountants ◽  
American Institute ◽  
Public Accountants

As associações sem finalidade lucrativa não possuem legislação específica para evidenciação de suas Demonstrações Financeiras (DFs) e por isso, são obrigadas a prepará-las conforme as normas para as organizações com finalidades lucrativas. Como a totalidade das rendas arrecadas pelas organizações sem fins lucrativos possui destinação específica, a utilização da teoria dos fundos para evidenciação das DFs pode tornar-se a mais adequada para este tipo de entidade. Assim, objetivou-se com este artigo demonstrar a evidenciação do Patrimônio Líquido em uma organização sem fins lucrativos sob a ótica da Teoria dos Fundos. A pesquisa caracterizada como exploratória, buscou converter as DFs de uma organização sem finalidade lucrativa, elaboradas de acordo com a Teoria da Entidade, em DFs elaboradas segundo os princípios da Teoria dos Fundos. O modelo de DFs utilizado no estudo encontra respaldo no Pronunciamento SFAS 117 do American Institute of Certified Public Accountants de 1993, o qual identifica se os recursos arrecadados apresentam restrições temporárias, permanentes ou nenhum tipo de restrição de uso pela organização. Os resultados mostram que a conversão permite ao usuário das informações contábeis identificar o patrimônio da organização de acordo com a sua finalidade e/ou restrição. Desse modo, a organização em estudo apresentou um patrimônio quase em sua totalidade com característica de restrição de uso. Além de revelar um superávit consolidado no Resultado do Exercício pelo modelo da Teoria da Entidade e um déficit quando segregado por fundos.

The 150-Hour Requirement and Changes in the Supply of Accounting Undergraduates: Evidence from a Quasi-Experiment

2002 ◽  
Vol 17 (3) ◽  
pp. 253-268 ◽  
Author(s):  
Jeff P. Boone ◽  
Teddy L. Coe
Keyword(s):  
Working Conditions ◽  
The Other ◽  
Certified Public Accountants ◽  
American Institute ◽  
Student Counseling ◽  
Public Accountants ◽  
Accounting Graduates ◽  
Quasi Experiment

The number of accounting graduates has declined sharply following the near universal adoption of the 150-hour requirement for licensing and as a condition for membership in the American Institute of Certified Public Accountants (AICPA). This decline has led many observers to conclude that the 150-hour requirement was a mistake. Our study investigates the extent to which the 150-hour requirement (rather than other causes) is responsible for the decline in the number of accounting graduates during the 1990s. We document that approximately 38 percent of the decline can be attributed to the requirement. The other 62 percent of the decline remains unexplained. Our study underscores the importance of considering other factors such as noncompetitive compensation, unattractive working conditions, inappropriate student counseling, and inadequate curriculum among others when trying to understand the decline in accounting enrollments.

Challenging Production, 1993–2005

2021 ◽  
pp. 311-333
Author(s):  
Max Waltman
Keyword(s):  
Child Pornography ◽  
Bankruptcy Law ◽  
Legal Analysis ◽  
Integral Means ◽  
Sexual Crimes ◽  
Legislative History ◽  
News Reporting ◽  
Political Ideas ◽  
History Of ◽  
Prostitution Laws

The chapter analyzes Swedish legislative attempts to challenge pornography production with laws against pimping/procuring. Minority parliamentary motions and the 1993 Prostitution Inquiry’s proposal to extend prostitution laws to cover pornography producers are considered. The 1998 Sexual Crimes Committee’s rejection of this proposal is scrutinized. Its attempts to invoke the legislative history of media antitrust and bankruptcy law, child pornography and child molestation amendments, as well as distinctions between content and underlying criminal conduct, are rebutted by legal analysis based on the primary sources. Furthermore, it is demonstrated that case law on analogous issues disproves the Committee’s position, including decisions on violent resistance and dishonest conduct during artistic film projects, filmed sexual crimes, amateur pornography, and purchasing/possessing illegal weapons as an integral means of otherwise legitimate news reporting. It is concluded that decisions not to apply prostitution laws to pornographers are based on ideology, not law, political ideas, not legislated rules.

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