tax research 6

tax research 6 - property concerning a restrictive covenant...

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Jennifer Solomon Tyler Phil Tax Accounting Research #6 Chapter 11 Problem 85, page 522 Covenant not to compete. A covenant not to compete (or similar arrangement) that is a section 197 intangible cannot be treated as disposed of or worthless before you have disposed of your entire interest in the trade or business for which the covenant was entered into. Members of the same controlled group of corporations and commonly controlled businesses are treated as a single entity in determining whether a member has disposed of its entire interest in a trade or business . § 202.004. ENFORCEMENT OF RESTRICTIVE COVENANTS . (a) An exercise of discretionary authority by a property owners' association or other representative designated by an owner of real
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Unformatted text preview: property concerning a restrictive covenant is presumed reasonable unless the court determines by a preponderance of the evidence that the exercise of discretionary authority was arbitrary, capricious, or discriminatory. (b) A property owners' association or other representative designated by an owner of real property may initiate, defend, or intervene in litigation or an administrative proceeding affecting the enforcement of a restrictive covenant or the protection, preservation, or operation of the property covered by the dedicatory instrument. (c) A court may assess civil damages for the violation of a restrictive covenant in an amount not to exceed $200 for each day of the violation. Section 1231...
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