This course discusses many topics including charitable gifts from trusts and bargain sales, when real estate or an LLC interest constitutes inventory, and selected fiduciary income tax issues regarding a trust owning S corporation stock. These topics will be viewed through the lense of various recent court cases.

Regarding charitable issues, Braen v. Commissioner, T.C. Memo. 2023-85, disallowed a bargain sale and is a primer on various substantiation issues. Also, an unreported Tax Court case was settled favorably to the taxpayer when the IRS attempted to disallow charitable contributions authorized after a trust was decanting. The judge’s pretrial order expressing support for the decanting led to the settlement.

Glade Creek Partners, LLC v. Commissioner, T.C. Memo. 2023-82, held that real estate was inventory and described how the taxpayer could have tried to avoid that result. CCA 202309015 argued that the interests in LLCs holding land were inventory under Code § 1221.

Finally, CCA 202335014 clarified an electing small business trust’s deduction of net operating losses, clarifying the scope of CCA 200734019. While on the topic of S corporation trust, this webinar will discuss toggling grantor trust status when the business is sold.

Learning Objectives:

• Evaluate the affects of recent court cases and legal developments on charitable contributions and real estate taxation


• Identify how bargain sales affect charitable gifts


• Define the tax consequences of inventory vs. capital asset


• Recognize how real estate and LLC interests work as inventory


• Evaluate electing small business trust income taxation


• Recognize gain and basis mismatches when toggling grantor trust status when a business is sold