However, each eligible employee may also irrevocably
elect to have the employer pay for this coverage on an after-tax basis (i.e.,
elect to be taxed currently on these employer-paid premiums).
Of course, key employees would not
elect this coverage because it would duplicate benefits already provided at the employer's expense outside the cafeteria plan.
1361 does not allow certain types of corporations to
elect S status, including certain financial institutions, insurance companies, foreign corporations and corporations electing Sec.
If the IRA owner is permitted to
elect either the term-certain or life-expectancy recalculation methods and fails to do so, the recalculation method is the default option unless the IRA agreement provides otherwise.
Thus, the regulations do not require a current-year transfer to the trust for which the termination statement is being filed, nor do they require a gift tax return to otherwise be filed in the year a taxpayer
elects to terminate a previous election out.
Thus, split gifts made by the transferor's spouse are now listed separately in Part 1, 2 or 3 of Schedule A, Facilitating the ability to
elect out of the deemed-allocation rules for split gifts that are direct skips or lifetime redirect-skip transfers.
743 to
elect a basis step-up within the partnership, to reflect any higher FMV of partnership assets, based on the appraised value of the deceased partner's interest.
All other taxpayers must
elect to compute LIFO price indexes from the PPI Detailed Report.
An "active trader" in securities therefore can
elect to recognize gain or loss on any security held in connection with his trade or business as a trader at the close of the tax year, as if that security was sold for its fair market value on the last business day of that tax year, and thus take into account the gain or loss for the year.
Generally, the notice allows taxpayers to
elect the installment method by filing an amended return(s) before the expiration of the statute of limitations for the applicable tax year(s), to report income from an installment sale under the installment method.
In addition, if the spouse who files as married filing separately
elects to itemize deductions, may the spouse who files as head of household claim the standard deduction for head of household status?
If the taxpayer
elects to include the amortization of the discount as current-year income, Sec.
If the corporation
elects to use the specific accounting method, all the shareholders affected by the stock disposition must consent.
Also, if a shareholder owns brother-sister S corporations, contributes stock of one to the other and
elects QSSS status for the new subsidiary, the step-transaction doctrine may make this group of transactions taxable.
Once a taxpayer
elects the HAR, it may use that method for the next five years, after which the taxpayer must compute its actual absorption ratio under the applicable simplified method for one year.