It’s Complicated-
The Code includes a number of complex rules that are aimed at those overseas business and investment activities of U.S. taxpayers that Congress has determined may result in the improper deferral or...more
7/11/2023
/ CARES Act ,
Controlled Foreign Corporations ,
Foreign Corporations ,
Foreign Earned Income ,
Foreign Investment ,
Foreign Ownership ,
Foreign Tax ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Parent Corporation ,
Senate Finance Committee ,
Stock Ownership ,
Subpart F ,
Tax Cuts and Jobs Act ,
Tax Deferral
Earlier this week, the United States celebrated the 247th anniversary of its declaration of independence from the United Kingdom of Great Britain, though the latter did not formally recognize the independence of its thirteen...more
Estate Tax – It’s a Killer-
One of the reasons often given for eliminating the estate tax is the substantial economic burden it places upon the estate of a deceased business owner and upon the business itself. Specifically,...more
6/16/2023
/ Acceleration ,
Adjusted Gross Income ,
Business Assets ,
Business Ownership ,
Closely Held Businesses ,
Deceased ,
Decedent Protection ,
Estate Tax ,
Fair Market Value ,
Gift Tax ,
Installment Agreements ,
Irrevocable Life Insurance Trusts ,
IRS ,
Life Insurance ,
Redemption Agreement ,
Stock Ownership ,
Stock Purchase Agreement ,
Tax Liability ,
Testamentary Transfers
Something’s Wrong-
Of late, a not insignificant number of the business owners with whom I’ve been working have raised some concern over whether they are financially prepared for the next stage of their lives.
...more
6/6/2023
/ Business Expenses ,
Business Ownership ,
CEOs ,
Compensation ,
Dividends ,
Interest Rates ,
Investors ,
IRS ,
Tax Court ,
Tax Liability ,
Tax Planning ,
Transfers
The Supremes-
The Constitution has figured prominently in the news of late. In the days preceding the initial discussions among members of the Administration and the Congressional leadership regarding the debt ceiling,...more
5/24/2023
/ Debt Ceiling ,
Debt Collection ,
Federal Budget ,
Financial Records ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Investigations ,
IRS ,
Notice Requirements ,
SCOTUS ,
Summons ,
Tax Liability ,
Third-Party
At war with Russia in eastern Europe, a nascent competing world order, mass shootings and bank failures at home, questionable audit practices by the Big 4 . . . everywhere, debt ceilings and the risk of default, inflation,...more
5/12/2023
/ Capital Contributions ,
Capital Gains ,
Capital Investments ,
Fair Market Value ,
Future Profits ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Investors ,
IRS ,
Limited Liability Company (LLC) ,
Liquidation ,
Partnership Interests ,
Partnerships ,
Profits Interests ,
Safe Harbors ,
Tax Court ,
Term Sheets
Charitable Giving Update-
According to a recent report on charitable giving, the number of donors at every level of giving dropped during the first three quarters of 2022. The number of new donors was down by over 19...more
5/3/2023
/ Articles of Incorporation ,
Bonuses ,
Burden of Proof ,
Capital Gains ,
Change in Control ,
Charitable Donations ,
Due Diligence ,
Gift Tax ,
IRS ,
Letters of Intent ,
Private Equity ,
Purchase Agreement ,
Registered Investment Advisors ,
Selling a Business ,
Shareholder Distributions ,
Stock Purchase Agreement ,
Tax Court ,
Tax Returns
Like Peas in a Pod?
What do private, not-for-profit colleges and hospitals have in common? There are quite a few items that come immediately to mind:
•They may qualify for exemption from federal income tax.
•Tax-exempt...more
4/20/2023
/ CHNA ,
Colleges ,
Exclusions ,
Executive Compensation ,
Exemptions ,
Federal Taxes ,
Financial Assistance Policies ,
Hospitals ,
IRS ,
Mayo Clinic ,
Net Investment Income ,
Public Charities ,
Tax Exemptions ,
Teaching Hospitals ,
UBIT ,
Unrelated Business Income Tax
On March 20, 2023, Senators Warren, Sanders, Van Hollen, and Whitehouse addressed a letter to Treasury Secretary Yellen in which they urged Yellen “to use [her] existing authority to limit the ultra-wealthy’s abuse of trusts...more
4/11/2023
/ AFR ,
Estate Tax ,
Fair Market Value ,
Gift Tax ,
Grantor Trusts ,
Heirs ,
Irrevocable Trusts ,
IRS ,
Tax Avoidance ,
Tax-Free Transfers ,
Trusts ,
U.S. Treasury
Every year, the IRS compiles a list of common scams that taxpayers may encounter – its so-called “Dirty Dozen.”
Today, the Service wrapped up the annual Dirty Dozen list of tax scams for 2023 with a reminder for taxpayers,...more
4/6/2023
/ Charitable Deductions ,
Charitable Remainder Trust ,
Criminal Investigations ,
Digital Assets ,
Email ,
Employee Retention ,
Foreign Bank Accounts ,
Fuel Tax ,
IRS ,
Misleading Statements ,
Offer-in-Compromise ,
Offshore Banks ,
Online Platforms ,
Phishing Scams ,
Scams ,
Social Media ,
Tax Avoidance ,
Tax Credits ,
Tax Preparers ,
Text Messages ,
Third-Party
Many years ago, New York revised its personal income tax law to achieve close conformity with the Federal system of income taxation. The stated purpose for the revision was to simplify tax return preparation, improve...more
3/27/2023
/ Adjusted Gross Income ,
Audits ,
Documentation ,
Income Taxes ,
IRS ,
New York ,
Real Estate Professionals ,
Rental Property ,
State Taxes ,
Tax Appeals ,
Tax Deductions ,
Taxable Income ,
Taxation
What Is It?
Where one stands on an issue of tax law may depend upon context and perspective, including the facts and circumstances one finds relevant, and whom one is counseling or representing.
Tax advisers often find...more
3/23/2023
/ Broker-Dealer ,
Capital Assets ,
CCA ,
Charitable Deductions ,
Investors ,
IRS ,
Limited Liability Company (LLC) ,
OCC ,
Partnership Interests ,
Partnerships ,
Securities ,
Tax Exemptions
The Budget and Accounting Act of 1921 established the requirement that the President submit a budget to Congress for the upcoming fiscal year. Among other things, the proposed federal budget affords the President an...more
3/13/2023
/ C-Corporation ,
Capital Gains ,
Estate Tax ,
Federal Budget ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Grantor Trusts ,
IRS ,
Joe Biden ,
NIIT ,
S-Corporation ,
Tax Deferral ,
Tax Increases ,
Tax Rates
Have you ever wondered whether you were barking up the wrong tree? That the solution to a problem may be found, not in the approach to which you were already committed and invested, but in an altogether different direction?...more
3/9/2023
/ Adjusted Gross Income ,
Business Expenses ,
Closely Held Businesses ,
Foreign Corporations ,
Income Taxes ,
IRS ,
Joe Biden ,
Partnerships ,
S-Corporation ,
Self Employed ,
Tax Court ,
Tax Evasion ,
Tax Increases ,
Wealth Tax ,
Wire Transfers
There have been some interesting developments of late with respect to the ownership of real property in parts of the English-speaking world. For example, Canada has imposed a temporary ban on the purchase of such property by...more
2/22/2023
/ Beneficial Owner ,
Beneficiaries ,
Canada ,
Corporate Transparency Act ,
Estate Tax ,
Estate-Tax Exemption ,
FinCEN ,
FIRPTA ,
Foreign Corporations ,
Foreign Investment ,
Foreign Nationals ,
Foreign Ownership ,
Gift Tax ,
Investment Portfolios ,
IRS ,
Non-Citizens ,
Non-Resident Aliens ,
Qualified Domestic Trust (QDOT) ,
Residential Property Owners ,
Title Insurance
On Monday, February 20, we celebrate the birthday of George Washington.
We honor this extraordinary individual who, in 1775, was unanimously selected by the otherwise fractious Continental Congress as the commander in chief...more
State of the “Union”
Did you watch the President’s state of the union address the other night? Was it as you expected? Were you hoping for something more? Were you disappointed? Did you find it informative? Maybe...more
2/13/2023
/ Capital Assets ,
Debt ,
Dischargeable Debts ,
Fair Market Value ,
FIRPTA ,
Foreign Ownership ,
Foreign Taxpayers ,
IRS ,
Joe Biden ,
Lenders ,
Purchasers ,
Short Sales ,
State of the Union ,
Tax Liability
Debacle-
Understanding the etymology of a word often enables us to better understand or appreciate its use in contemporary speech. For example, the word “crypto” is derived from the Greek word “krypto,” which describes...more
1/20/2023
/ Bitcoin ,
Capital Gains ,
Cash Value ,
Cryptocurrency ,
Debentures ,
Digital Assets ,
Fair Market Value ,
Federal Taxes ,
Investment ,
IRS ,
OCC ,
Tax Deductions ,
Tax Losses ,
Virtual Currency
Every now and then, some well-meaning colleague will ask how I spend my free time. I usually pause before responding – to gather my thoughts – which prompts them to restate their question with what they believe is greater...more
1/13/2023
/ Business Income ,
Business Profits ,
Income Taxes ,
Investment ,
IRS ,
Loans ,
Profits ,
Tax Court ,
Tax Deductions ,
Tax Losses ,
Tax Planning ,
Taxable Income
Last Friday, December 30, 2022, during the final hours of the 117th Session of Congress, the House Ways and Means Committee – through which all tax legislation passes – released redacted versions of six years of Mr. Trump’s...more
1/5/2023
/ Audits ,
Business Expenses ,
Business Losses ,
Closely Held Businesses ,
Donald Trump ,
IRS ,
Loans ,
Tax Avoidance ,
Tax Legislation ,
Tax Liability ,
Tax Reform ,
Ways and Means Committee
Don’t Be Unreasonable-
Much has been written of late regarding the payment by a business of various personal expenses incurred by its owner or certain key employees. The payment of an owner’s personal expenses appears to...more
12/16/2022
/ Arms Length Transactions ,
Business Expenses ,
Business Ownership ,
Closely Held Businesses ,
Compensation ,
Family Businesses ,
IRS ,
Personal Use ,
Reasonable Compensation ,
Selling a Business ,
Tax Deductions ,
Tax Liability ,
Taxable Income
To avoid the manipulation of tax consequences to which transactions between certain related taxpayers may be susceptible, the IRS and the Courts generally require that such transactions be closely scrutinized to ensure that...more
12/2/2022
/ Arms Length Transactions ,
Capital Distributions ,
Capital Gains ,
Closely Held Businesses ,
Fair Market Value ,
Internal Revenue Code (IRC) ,
IRS ,
Like Kind Exchanges ,
Limited Liability Company (LLC) ,
Partnerships ,
Tax Avoidance
The Mid-Terms-
With 50 seats in the Senate, the Dems still control that Chamber. A win in the Georgia runoff, however, may lessen the burden for Majority Leader Schumer by, perhaps, neutralizing the significance of a certain...more
11/17/2022
/ Business Ownership ,
Business Taxes ,
Domicile ,
IRS ,
Jurisdiction ,
Partnership Interests ,
Political Candidates ,
Political Parties ,
Primary Residence ,
State Elections ,
State Taxes ,
Tax Returns
Some folks eagerly await the release of a new album. Others camp outside of big box retailers to get the jump on holiday gifts. There are those who line up at box offices to purchase tickets for a concert that is months away....more
11/11/2022
/ Estate Tax ,
Federal Budget ,
Financial Adviser ,
Gifts ,
Grantor Trusts ,
Green Book ,
Internal Revenue Code (IRC) ,
IRS ,
Priority Guidance Plan ,
Tax Advice ,
Trusts ,
U.S. Treasury ,
Ways and Means Committee
The Key Person-
The closely held corporation is often a fragile creature. Too often, its continued success and well-being are overly dependent upon the continued involvement of one individual – namely, the founder and...more
11/3/2022
/ Closely Held Businesses ,
Estate Tax ,
Grantor Trusts ,
IRS ,
Marital Trusts ,
Revocable Trusts ,
S-Corporation ,
Shareholders ,
Successors ,
Surviving Spouse ,
Testamentary Trust ,
Trusts