Dispatch for: September 20, 2021
Of billboards, cryptocurrencies, and wash sale rules.
Welcome to the first official Tax Mailing List dispatch. The current intent is to publish weekly on Mondays (hence the backdating) and give a summary of the previous week. The posting schedule may become more frequent if interest suggests that would be preferable. The beatings will continue until morale improves.
DECISIONS
Maria Isabel Goode et al. v. Commissioner. In making a determination under 26 USC 6015 and Rev. Proc. 2013-34, sec. 4.03(2), 2013-43 I.R.B. at 400-403 the court will take in to account all facts and circumstances to ascertain whether equitable relief should be granted – that is, a spouse is entitled to equitable relief from joint and several liability with regards to a joint return.
Clear Channel Outdoor LLC v. Raymond. Determining whether a Baltimore tax singling out off-premises billboards is subject to heightened scrutiny under the First Amendment. Held that it is not as it does not discriminate on the basis of ideas and is not directed at particular ideas.
NEWS OF NOTE
Breaking Down the Cryptocurrency Tax Proposals in Congress. (Forbes/Tax Notes)
How a key Biden tax idea got crushed (step up basis). (Full Stack Economics)
America's billionaires pay an average income tax rate of just 8.2%, Biden administration says. (CBSNews).
Why the White House and Democrats use $400,000 as the threshold for taxing ‘the rich’. (CNBC)
OP-ED/INTERESTS
CRYPTO AND THE WASH SALE RULE. A wash sale occurs when you sell a security at a loss and then purchase that same security or “substantially identical” securities within 30 days (before or after the sale date). The House Ways and Means Committee released an outline that suggests they intend to make cryptocurrencies subject to wash sale. This raises the question: are all cryptocurrencies “substantially similar” to each other? If not, will there be a loophole created for selling depreciated cryptocurrencies, harvesting the loss, receiving another cryptocurrency in exchange, and repurchasing the first without being subject to wash sale?
Disclosure: None of the aforementioned is intended to be legal or tax advice, and none of it should be relied upon for those purposes.
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