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Regs. integrate cafeteria-plan and family-leave rules

Article Abstract:

Proposed Regulations about the handling of employees on leave under the Family and Medical Leave Act (FMLA) under cafeteria plans has been made public by the IRS. These regulations discuss coverage and payments during the leave and reinstatement. An employee on FMLA leave can avail of group health plan benefits just like an employee not on leave and the employer is required to maintain payment of its share of the cost of coverage. The employee may terminate or change a present election on the same terms enjoyed by continuing employees. The employee still has a right to be reinstated even after the group health coverage has been terminated. The employee should still pay his or her share of group health premiums. Payment options under the cafeteria plan are pre-pay, pay-as-you-go and catch-up.

Family leave, Cafeteria benefit plans

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Like-kind exchanges restricted by two recent developments, liberalized by one

Article Abstract:

The IRS has issued Proposed Regulations under Section 1031 delineating how properties are of a like kind and the treatment of multiple property exchange liabilities. Two additional developments affecting like-kind exchanges concern title and restructuring a transaction. Section 1031(A)(1) provides for non-recognition of gain or loss when property used in business or trade or investment purposes or held for productive use is exchanged for like-kind property. For a property to be considered like-kind and eligible for Section 1031(a)(1) tax-free exchange treatment, the property must be either identified as property received in exchange on or before 45 days from transferal, or must be received before 180 days after the property transferal or the due date on the taxpayers' return.

Methods, Tax accounting

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