Conditions Under Which a Dependent Can File a Joint Return:  Is the Current Confusion and Complexity Really Necessary?
R. Boley & E. Outslay

Quantifying the Poisoning Effect of Tax Preference Items on the Maximum Tax for a High-Bracket Taxpayer
J. O. Everett & D. E. Keys

Section 1248(b):  The Individual Limitation on Taxing Sales of CFC Stock Offers Substantial Tax Savings
J. L. Kramer & S. S. Kramer

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Conditions Under Which a Dependent Can File a Joint Return:  Is the Current Confusion and Complexity Really Necessary?

R. Boley & E. Outslay

ATA Summary

The paper analyzes the issue of joint filing as it relates to the dependency exemption.  The authors suggest that Congress review the original legislative intent and reword  Section 151(e)(2) to reflect intended exceptions.

Research Methodology:  The paper uses legal research methodology. Conclusions are the subjective judgments of the authors.  

Quantifying the Poisoning Effect of Tax Preference Items on the Maximum Tax for a High-Bracket Taxpayer

J. O. Everett & D. E. Keys

ATA Summary

The article develops a tax preference decision model which reflects the "poisoning" effect of tax preference items on the calculation of the maximum tax on personal service income.

Research Methodology:  A set of equations are developed to determine whether or not accelerated depreciation should be elected by an individual qualifying for the maximum tax.  The equations compare the time value of money savings generated by the preference deduction with the additional tax costs created by a combination of the minimum tax and the loss of income qualifying for the maximum tax.  A numerical example is presented.  

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Section 1248(b):  The Individual Limitation on Taxing Sales of CFC Stock Offers Substantial Tax Savings

J. L. Kramer & S. S. Kramer

ATA Summary

The paper examines the applicability of Section 1248(b) and the calculation of the Section 1248(b) limitation.  The authors then compare the relative tax liabilities incurred under Sections 1248(a) & (b) and the effect various variables on the effective U.S. tax rate on the dividend income.

Research Methodology:  The paper expresses mathematically the 1248(a) and 1248(b) calculations using some simplifying assumptions.  Foreign and U.S. corporate tax rates and individual tax rates are then incorporated into the model and analyzed.  A breakeven analysis determines the average individual tax rate where the taxpayer would be neutral between having his gain taxed under the Section 1248(a) or 1248(b) alternatives.