At different times over the course of the last thirty days or so, I have seen reports describing various plans to increase income taxes and/or wealth taxes on the “rich” that have either been endorsed or proposed by the likes...more
10/26/2022
/ Board of Directors ,
China ,
General-Business ,
Governor Newsom ,
Income Taxes ,
IRS ,
Limited Liability Company (LLC) ,
S-Corporation ,
Shareholder Distributions ,
Shareholders ,
Wealth Tax
“Show Me the Money”-
Much has been written in recent months about how well the investment portfolios of private foundations have performed over the last several years.
For example, a study conducted by the Council on...more
10/12/2022
/ Bipartisan Budget Act ,
Business Income ,
C-Corporation ,
Charitable Organizations ,
Closely Held Businesses ,
Distribution Rules ,
Donor-Advised Funds (DAFs) ,
Internal Revenue Code (IRC) ,
Investment Portfolios ,
IRS ,
Private Foundations ,
Required Minimum Distributions ,
S-Corporation ,
Tax Deductions ,
Tax Liability
Constructive Transfers-
It is axiomatic that the tax treatment of interactions between a closely held business and its owners will generally be subject to heightened scrutiny by the IRS, and that the labels attached to such...more
9/27/2022
/ Business Expenses ,
Business Taxes ,
C-Corporation ,
Closely Held Businesses ,
Deductions ,
Investment ,
IRS ,
Parent Corporation ,
Personal Exemptions ,
S-Corporation ,
Shareholders ,
Tax Court ,
Tax Deductions
Sibling Rivalry-
You have probably encountered family-owned corporations in which the founder’s offspring are involved in the business to varying degrees. They may even own some equity, typically having received such equity...more
9/22/2022
/ Closely Held Businesses ,
Distribution Rules ,
Estate Planning ,
Fair Market Value ,
Family Businesses ,
IRS ,
Popular ,
Reorganizations ,
Shareholders ,
Succession Planning ,
Tax-Free Spin-Offs
When is a loan not a loan? When it’s something else – for example, equity.
This is one of those pesky facts and circumstances issues that plague courts, taxpayers, and tax advisers to no end.
Debt- On one end of the...more
9/9/2022
/ Borrowers ,
Debt ,
Equity ,
Fixed-Rate Loans ,
Interest Rates ,
IRS ,
Lenders ,
Limited Liability Company (LLC) ,
Loan Documentation ,
Loans ,
Partnerships ,
Preferred Shares ,
Tax Court ,
Tax Returns ,
Value Appreciation
It is a fact that the phenomenon of human migration has been a major force in the history of the world.
Indeed, among the themes that have remained constant during my years of practice, there are two that may be...more
8/23/2022
/ Domicile ,
Estate Planning ,
Estate Tax ,
Foreign Nationals ,
Foreign Trusts ,
Gift Tax ,
Intangible Property ,
IRS ,
Limited Liability Company (LLC) ,
Marital Assets ,
Non-Citizens ,
Non-Residents ,
Partnership Interests ,
Residency Status ,
Tangible Property ,
Tax Treaty ,
Transfer Taxes ,
Visas
I recently encountered an interesting situation in which someone suggested that a grantor trust be decanted into a non-grantor trust before the end of the taxable year. The reason? To avoid the special interest charge that...more
8/17/2022
/ C-Corporation ,
Capital Gains ,
Decanting ,
Grantor Trusts ,
Installment Agreements ,
IRS ,
Limited Liability Company (LLC) ,
Partnerships ,
Pass-Through Entities ,
Spouses ,
Tax Liability ,
Tax-Deferred Exchanges ,
Trusts
Where is the Economy Heading?
According to the data released Friday by the Department of Labor, the U.S. economy added approximately 528,000 jobs in July, reducing the unemployment rate to 3.5 percent. Although this...more
8/9/2022
/ Administrative Law Judge (ALJ) ,
Business Taxes ,
Closely Held Businesses ,
Department of Labor (DOL) ,
Federal Reserve ,
Foreign Markets ,
Income Taxes ,
IRS ,
New York ,
Price Inflation ,
Tax Appeals ,
Tax Liability ,
Tax Tribunal ,
Unemployment ,
Wages ,
Withholding Tax
Tax Alchemy?
How many of you remember Section 138509 of the Ways and Means Committee’s markup last September of what would have been the Build Back Better Act? (A moment of silence, please.) Allow me to jog your memory....more
7/26/2022
/ Capital Gains ,
Domestic Partnership ,
Fair Market Value ,
IRS ,
Like Kind Exchanges ,
Partnerships ,
Pass-Through Entities ,
Property Owners ,
S-Corporation ,
Shareholder Distributions ,
Shareholders ,
Stocks ,
Tax Deferral ,
Taxable Exchanges ,
Ways and Means Committee ,
Wealth Tax
Deal Costs, Generally-
Every purchase and sale of a business, whether from the perspective of the seller or the buyer, is about economics, and few items will impact the economics of the transaction more certainly or...more
7/12/2022
/ Capital Assets ,
Capital Losses ,
CCA ,
Income Taxes ,
IRS ,
Limited Liability Company (LLC) ,
Selling a Business ,
Target Company ,
Tax Benefits ,
Tax Deductions ,
Termination Fees
Escape from New York-
According to data released by the IRS earlier this year, the pandemic triggered a “wealth migration” that saw high-tax states like New York lose high-income earners to low-tax jurisdictions such as...more
7/6/2022
/ Administrative Law Judge (ALJ) ,
Appellate Courts ,
CPLR ,
Income Taxes ,
IRS ,
New York ,
Non-Permanent Residents ,
Non-Residents ,
Price Inflation ,
Remote Working ,
Residency Status ,
Resident Non-Domiciled (RND) ,
Stabilization Issues ,
State Taxes ,
Tax Appeals ,
Tax Returns ,
Tax Revenues ,
Tax Tribunal ,
Vacation Homes
State Finances-
Much has been written over the last few weeks about the unprecedented financial cushion that many states have accumulated thanks to federal support prompted by the pandemic and larger-than-expected tax...more
5/24/2022
/ Adjusted Gross Income ,
Administrative Law Judge (ALJ) ,
Audits ,
Federal Aid ,
IRS ,
Limited Liability Company (LLC) ,
New York ,
State Budgets ,
State Taxes ,
Tax Appeals ,
Tax Liability ,
Tax Returns ,
Tax Revenues ,
Taxable Income
Withdrawing Value-
In general, the owners of a closely held business have several options by which they may withdraw money from the business without selling their interest in the business....more
4/26/2022
/ Capital Assets ,
Closely Held Businesses ,
Compensation ,
Debtor-Creditor ,
Equity ,
Fund Distribution ,
IRS ,
Liquidation ,
Partnership Distributions ,
Partnership Interests ,
Partnerships ,
Passthru Payments ,
Taxation
The 2023 Budget-
Last week, the New York Legislature passed the State’s 2022-2023 Budget. The $220 billion Budget reflects an $8 billion increase over last year’s budget (a more than 3 percent jump). It is also $4 billion...more
4/13/2022
/ Cannabis-Related Businesses (CRBs) ,
Controlled Substances Act ,
Decriminalization of Marijuana ,
Federalism ,
Financial Services Industry ,
Financial Stimulus ,
Internal Revenue Code (IRC) ,
IRS ,
Medical Marijuana ,
Pass-Through Entities ,
Popular ,
State Budgets ,
State Taxes ,
Tax Revenues
Please join us as Louis Vlahos and Bernadette Kasnicki provide a refresher on preparing Form 990, the tax return for tax-exempt organizations. We will review…...more
Withdrawing Value-
Any tax adviser who has represented closely held businesses and their owners long enough realizes there are certain recurring themes that transcend the otherwise unique characteristics of the industry of...more
3/21/2022
/ C-Corporation ,
Closely Held Businesses ,
Compensation ,
Corporate Taxes ,
Credit Cards ,
Dividends ,
IRS ,
Management Fees ,
Meal and Entertainment Expenditures ,
Personal Use ,
Shareholder Distributions ,
Shareholders ,
Tax Court ,
Tax Planning
Double Tax-
The shareholders of C corporations have long sought legitimate operational and transactional structures by which they may reduce the double tax hit that is realized when such a corporation distributes its...more
3/11/2022
/ Audits ,
Burden of Proof ,
C-Corporation ,
Closely Held Businesses ,
Corporate Bonuses ,
Corporate Net Income ,
Disguised Sales ,
Dividends ,
Income Taxes ,
IRS ,
Job Duties ,
Midsize and Large Business Loans ,
Multi-Factor Test ,
Purchase Price ,
Reasonable Compensation ,
Salary/Wage History ,
Sale of Assets ,
Shareholders ,
Tax Liability ,
Tax Returns
Assumed Liabilities-
If a taxpayer were to sell the assets that comprise the taxpayer’s business, they would realize gain if the amount realized by the taxpayer from the sale is more than the taxpayer’s adjusted basis for...more
3/4/2022
/ Acquisitions ,
Amended Tax Returns ,
Deferred Compensation ,
Investment Property ,
IRS ,
Limited Partnerships ,
Sale of Assets ,
Tax Code ,
Tax Court ,
Tax Deductions ,
Tax Liability
Segue-
Earlier this month, the Treasury released a study in which it examined how transactions in “high-value art” may facilitate the laundering of illicit proceeds.[i] The study also considered efforts that be undertaken by...more
2/25/2022
/ Art ,
Blockchain ,
Collateralized Loan Obligations ,
Digital Assets ,
Digital Marketplace ,
IRS ,
Money Laundering ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Taxation ,
U.S. Treasury ,
Virtual Currency
“It’s My Business”-
The owner of a closely held business will often find it difficult to distinguish the business from their own person. That is certainly true for a sole proprietorship. In many cases, unfortunately, the...more
2/17/2022
/ Alter Ego ,
Client Assets ,
Closely Held Businesses ,
Compensation ,
Creditors ,
Fraudulent Transfers ,
IRS ,
Limited Liability Company (LLC) ,
Purchase Agreement ,
Tax Assessment ,
Tax Liability ,
Trusts
“Would I ever leave this company? Look, I’m all about loyalty. In fact, I feel like part of what I’m being paid for here is my loyalty. But if there were somewhere else that valued loyalty more highly, I’m going wherever they...more
2/11/2022
/ Closely Held Businesses ,
Compensation ,
Corporate Officers ,
Directors ,
Employee Stock Purchase Plans ,
Equity ,
ESOP ,
Fair Market Value ,
Family Businesses ,
Forfeiture ,
IRS ,
Limited Liability Company (LLC) ,
Partnerships ,
S-Corporation ,
Tax Court ,
Tax Shelters ,
Trustees ,
Vested Benefits
Taxes and Snowy Weather?
How many of you awoke Saturday to find that the winter storm about which we had heard so much during the preceding days had lived up to its hype? What was your first thought? “Fudge,” right?...more
2/4/2022
/ C-Corporation ,
Income Taxes ,
IRS ,
Liquidation ,
New York ,
Partnerships ,
Pass-Through Entities ,
S-Corporation ,
State Taxes ,
Tax Authority ,
Tax Deductions ,
Taxable Income ,
Unincorporated Business Tax (UBT)
Counting the Days?-
We are 302 days away from the national mid-term elections, to be held November 8, 2022, yet the first full week of the new year has already highlighted some of the economic issues with which the...more
1/12/2022
/ Appraisal ,
Business Ownership ,
Business Valuations ,
Closely Held Businesses ,
Estate Planning ,
Estate Tax ,
Fair Market Value ,
Federal Budget ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Grantor Trusts ,
Investment Banks ,
IRS ,
Letters of Intent ,
Mark-To-Market ,
Medicare ,
Net Investment Income ,
Qualified Small Business Stock ,
Stocks ,
Surtax ,
Target Company ,
Tax Increases ,
Wealth Tax
Timing-
I had planned to post this piece during the third week of December, a day or so after the exchange between Senator Manchin and the White House sealed the fate of the Build Back Better plan, at least in its current...more
1/4/2022
/ Business Assets ,
Closely Held Businesses ,
IRS ,
Limited Liability Company (LLC) ,
New York ,
Partnerships ,
Pass-Through Entities ,
Private Equity ,
QSub ,
Reorganizations ,
Revenue Procedures ,
S-Corporation ,
SALT ,
Shareholders ,
Tax Increases ,
Tax Liability ,
Transfer Taxes
Mention the “tax season” and most folks think of the weeks leading up to the April 15 deadline for filing one’s federal individual income tax return and paying the associated income tax. Truth be told, given the number of...more