William F. Webster

About William F. Webster

When I’m not practicing law, I’m playing guitar and bass in various rock and blues bands. Playing music is something I’ve done for most of my life. I also enjoy skiing at Squaw Valley, cycling in the foothills, and hiking in the Sierras.
19 01, 2021

IRC Sections 121 and 1031—Gain Exclusion and Deferral Riding Tandem

2021-01-22T00:41:49+00:00January 19th, 2021|Tax Articles|

Intro. The residential real property market has been active recently for rental houses and principal residences  It is perhaps for this reason that I have received several inquiries about the use of IRC Section 121 to exclude gain, the use of IRC Section 1031 to defer gain, and the potential use of both sections in a single transaction. This short post Continue Reading

14 12, 2020

The CARES Act and Qualified Improvement Property

2020-12-14T21:14:06+00:00December 14th, 2020|Tax Articles|

A provision of the Coronavirus Aid, Relief and Economic Security (CARES) Act has provided a much-anticipated technical amendment regarding “qualified improvement property” (QIP). This provision corrected a flaw in the Tax Cuts and Jobs Act (TCJA) of 2017, and has made QIP eligible for bonus depreciation of 100%, applied retroactively to tax years beginning after December 31, 2017.

Before the passage of Continue Reading

13 12, 2020

Section 199A, SSTBs and Related Parties

2021-01-09T00:42:11+00:00December 13th, 2020|Tax Articles|

Introduction. The Tax Cuts and Jobs Act of 2017 (the “Act”) added Section 199A to the Internal Revenue Code (the “Code”). Section 199A provides a deduction that reduces the effective tax rate on qualified business income (“QBI”) for owners of businesses taxed as sole proprietorships, partnerships, limited partnerships, limited liability companies, S corporations and similar pass-through entities (each hereinafter, a “pass-through Continue Reading

12 12, 2020

The Long Arm of California’s Franchise Tax Board

2021-01-09T00:42:40+00:00December 12th, 2020|Tax Articles|

In two recent decisions, both of which will be precedential, the California Office of Tax Appeals (OTA) ruled against taxpayers and in favor of the California Franchise Tax Board (FTB), as the FTB demonstrated its long reach when it comes to collecting taxes.

In its opinion in The Matter of the Appeal of Aroya Investments I, LLC, issued on July 7, 2020, Continue Reading

10 12, 2020

California 1031 Exchange Scoreboard: TAXPAYERS 3 – FTB 1

2020-12-14T21:29:35+00:00December 10th, 2020|Tax Articles|

In recent years, the California Franchise Tax Board (the “FTB”) has become known for auditing like-kind exchanges under IRC Section 1031. A scenario frequently challenged by the FTB is known as a “drop & swap.”  In that situation, an entity taxed as a partnership (such as an LLC or limited partnership) transfers an undivided interest in real property to one or Continue Reading