Summarizing PracticeRev. Rul. 92-16 1992-1 CB 15Full text - FactsFull text - HoldingWhat should go into a summary of Rev Rul 92-16?IRC §163(h)(1) & (2)163(h)(2)What should be in the summary?Here is how RIA summarized itQuotes and Summarizing IRC SectionsMore practice – Rev. Rul. 85-184, 1985-2 CB 84How to summarizeRIA’s summaryParaphrasingMoss, 80 TC 1073 (1983)Moss summaryQuestions?Summarizing PracticeA key part of writing research memosAlso see “Reminders on Presenting Your Own Work” (on 223A Website)Rev. Rul. 92-161992-1 CB 15Full text - FactsTitle IV of the Clean Air Act Amendments of 1990, 42 U.S.C. section 7651 et seq., establishes a program of sulfur dioxide emission allowances to be allocated annually to certain electricity generating companies (“utilities”) commencing in 1995. This program will be administered by the Environmental Protection Agency.Full text - Holding The allocation of emission allowances by the Environmental Protection Agency and their receipt by a utility pursuant to 42 U.S.C. section 7651b (a) does not cause the utility to realize gross income under section 61 of the Internal Revenue Code. Accordingly, under section 1012 of the Code, a utility's basis in those emission allowances is not measured by reference to the fair market value of the allowances.What should go into a summary of Rev Rul 92-16?Write a summary with a classmate.IRC §163(h)(1) & (2)(h) Disallowance of deduction for personal interest. (1) In general. In the case of a taxpayer other than a corporation, no deduction shall be allowed under this chapter for personal interest paid or accrued during the taxable year.163(h)(2)(h) (2) Personal interest. For purposes of this subsection, the term “personal interest” means any interest allowable as a deduction under this chapter other than— (A) interest paid or accrued on indebtedness properly allocable to a trade or business (other than the trade or business of performing services as an employee), (B) any investment interest (within the meaning of subsection (d)), (C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer, (D) any qualified residence interest (within the meaning of paragraph (3)), (E) any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6163, and (F) any interest allowable as a deduction under section 221 (relating to interest on educational loans).What should be in the summary?Write the summary.Here is how RIA summarized it“¶K-5510 Introduction—No Deduction for Personal Interest. Noncorporate taxpayers may not deduct “personal interest.” Personal interest is, in general, any interest that is not home mortgage interest (i.e., qualified residence interest), investment interest, business interest, or qualified education loan interest.” NOTE: RIA’s purpose in writing a summary is different than yours in writing a research memo.Quotes and Summarizing IRC SectionsSee “reminders” memo on 223A WebsiteEX – §162(a)EX - §121More practice – Rev. Rul. 85-184, 1985-2 CB 84How to summarizeHelpful steps:Read Read and take notes (crucial facts, key IRC rules, etc.)What is the rationale for the holding – why did the IRS (or court) rule this way?Do you understand it?How would you explain it verbally to someone (do it if possible)Write your summaryReview against the full textRIA’s summary“Utility customers, who pay additional amounts on their utility bills to utility company acting as agent for charitable org. that assists individuals with emergency energy needs, are entitled to deduction for additional amount in year paid.” (Ann ¶ 1705.39(80))What is missing from this summary?Paraphrasing Putting the summary of a document in your own words.Sometimes the IRS and courts say things in very helpful ways that make strong point you’ll want to use.Use quotes. See example on next slide.Moss, 80 TC 1073 (1983)“Daily meals are an inherently personal expense, and a taxpayer bears a heavy burden in proving they are routinely deductible.”Value to researcher:ConciseEmphasizes the key points of the entire holding.Moss summaryYou could paraphrase the whole statement (along with the rest of the case).Q – what is value of keeping:“inherently personal”“heavy burden”AND – if you do keep those words, they should be in quotes due to how the judge used them in context of decision – they are really a key part of what the judge said. Quotes also emphasizes the importance of the