INCOME TAX

Rev. Rul. 2003–52, page 960. Spin off. In the described situation, the division of a farm business to permit the principal managing shareholders to go their separate ways, promote family harmony, and further the personal estate planning of the principal managing shareholders’ parents satisfies the business purpose requirement of section 1.355– 2(b) of the regulations.

Rev. Rul. 2003–53, page 969. Special use value; farms; interest rates. The 2003 interest rates to be used in computing the special use value of farm real property for which an election is made under section 2032A of the Code are listed for estates of decedents.

Rev. Rul. 2003–55, page 961. Spin off. This ruling discusses whether the corporate business purpose requirement of section 1.355–2(b)(1) of the regulations is satisfied if, as a result of an unexpected deterioration of market conditions, the controlled corporation is unable to complete the stock offering that motivated the distribution.

Rev. Rul. 2003–57, page 959. Medical expenses. This ruling holds that amounts paid by individuals for procedures that are directed to improving appearance and do not promote the proper function of the body are not expenses for medical care deductible under section 213 of the Code unless the procedure is necessary to correct a deformity arising from a birth defect, disfiguring disease, or injury.

Finding Lists begin on page ii. Index for January through May begins on page vi.