New York’s personal income tax law, like that of other states, conforms with the federal system of income taxation. The reason typically given for such conformity is to simplify tax return preparation, improve compliance and...more
7/24/2025
/ Audits ,
Compliance ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Like Kind Exchanges ,
Limited Liability Company (LLC) ,
New York ,
Partnerships ,
Real Estate Transactions ,
Section 1031 Exchange ,
State Taxes ,
Tax Liability ,
Tax Planning ,
Tax Returns ,
Taxation
According to the New York City Comptroller, the City collected approximately $1.13 billion in Real Property Transfer Tax (“RPTT”) in the FY 2024. The Comptroller’s Office has forecast that $1.21 billion of RPTT will be...more
2/27/2025
/ Charitable Organizations ,
City of New York ,
Exempt Organizations ,
Limited Liability Company (LLC) ,
Nonprofits ,
Real Estate Transactions ,
Real Estate Transfers ,
Tax Exempt Entities ,
Tax Exemptions ,
Tax Liability ,
Transfer Taxes
Many successful business owners attribute some part of their success to their community. For some of these owners, it is not enough to simply acknowledge this “debt”; they feel an obligation to share some of their financial...more
2/10/2025
/ Business Entities ,
Charitable Organizations ,
Compliance ,
Corporate Governance ,
Donations ,
Enforcement Actions ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Loans ,
Nonprofits ,
Private Foundations ,
Tax Exempt Entities ,
Tax Liability ,
Tax Planning
If you’ve worked with the owners of closely held businesses for even just a few years, you have realized they are only half joking when they complain about having the government as a partner. Consider how much federal, state,...more
1/28/2025
/ Business Entities ,
Business Ownership ,
Closely Held Businesses ,
Enforcement ,
Enforcement Actions ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Partnerships ,
Tax Court ,
Tax Liability ,
Tax Planning ,
Tax Returns ,
Withholding Tax
Just a few weeks ago, many individual taxpayers, driven by what they viewed as the relatively imminent expiration of the enhanced federal transfer tax exemptions, sought advice on how to leverage their remaining exemption and...more
1/14/2025
/ Estate Planning ,
Estate Tax ,
Federal Taxes ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Limited Partnerships ,
Partnerships ,
Tax Exemptions ,
Tax Liability ,
Tax Planning ,
Tax Returns ,
Trusts
Few would argue that the federal government does not have a legitimate interest in preventing, detecting, and punishing tax fraud, money laundering, and other financial crimes. Likewise, I imagine few would disagree with the...more
1/3/2025
/ Anti-Money Laundering ,
Appeals ,
Bad Actors ,
Bank Secrecy Act ,
Beneficial Owner ,
Commerce Clause ,
Constitutional Challenges ,
Corporate Transparency Act ,
Department of Justice (DOJ) ,
Financial Crimes ,
FinCEN ,
Jurisdiction ,
Limited Liability Company (LLC) ,
NDAA ,
Petition for Writ of Certiorari ,
Preliminary Injunctions ,
Reporting Requirements ,
SCOTUS ,
Small Business ,
Stays ,
U.S. Treasury ,
Vacated
Decisions, Decisions -
The owners of a closely held U.S. business will have to make many difficult decisions during the life of the business. Among the earliest of these is the so-called choice of business entity, the...more
11/13/2024
/ C-Corporation ,
Closely Held Businesses ,
Foreign Markets ,
Foreign Subsidiaries ,
Income Taxes ,
Limited Liability Company (LLC) ,
Limited Partnerships ,
Parent Corporation ,
S-Corporation ,
Tax Appeals ,
Tax Treaty ,
U.S. Treasury
There is no denying that many parts of the Code are complex and, in some cases, too obscure for many “laypersons” to comprehend. Over time, this reality spawned the need for advisers who are both knowledgeable and experienced...more
8/12/2024
/ Business Expenses ,
Capital Gains ,
Fair Market Value ,
Foreign Persons ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Non-Resident Aliens ,
Partnership Interests ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Taxable Income
It is a basic principle of the income tax that the gain or loss realized by a taxpayer from the conversion of property into cash, or from the exchange of property for other property that differs materially in kind from the...more
6/11/2024
/ Beneficiaries ,
Capital Gains ,
Corporate Restructuring ,
Equity Investors ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Like Kind Exchanges ,
Limited Liability Company (LLC) ,
Liquidation ,
Partnerships ,
Property ,
Reorganizations ,
Shareholders ,
Tenancy-in-Common ,
Transfer of Assets ,
Trustees ,
Trusts ,
Wills
Assume that X and Y agree to the following: X will transfer ownership of Prop to Y, and Y will transfer cash to X.
What just happened? Obviously, X has sold Prop to Y. If the amount of cash that X receives is greater than...more
5/6/2024
/ Anti-Abuse Rule ,
Disguised Sales ,
Equity Partners ,
Financial Transactions ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Investment ,
Investment Adviser ,
IRS ,
Limited Liability Company (LLC) ,
Membership Interest ,
Partnership Distributions ,
Partnership Interests ,
Partnerships ,
Promissory Notes ,
Suppliers ,
Tax Avoidance ,
Tax Court
Last week, Sen. Warren reintroduced her “Ultra-Millionaires” wealth tax proposal to the Senate. Query her timing. The measure has the proverbial snowball’s chance in Hell of being enacted by this Congress.Perhaps the Senator...more
3/26/2024
/ Biden Administration ,
Business Entities ,
Business Income ,
Business Losses ,
Capital Gains ,
Closely Held Businesses ,
Corporate Taxes ,
Federal Budget ,
Federal Taxes ,
Income Taxes ,
Investment ,
Limited Liability Company (LLC) ,
Medicare Taxes ,
NIIT ,
Partnerships ,
S-Corporation ,
Self-Employment Tax ,
Shareholders ,
Tax Deductions ,
Tax Rates ,
Taxable Income ,
U.S. Treasury ,
Wealth Tax
It is not uncommon, in the context of a business entity in which a family owns a controlling or substantial interest, for an adviser to encounter intersecting gift and income tax issues.
This week’s post will consider one...more
Many of us have encountered variations of the following scenario: a parent owns and operates a business; one or more of their children are employed in the business; as the children mature and become more experienced and...more
2/9/2024
/ Asset Purchase Agreements ,
Business Assets ,
Business Succession ,
Closely Held Businesses ,
Family Businesses ,
Gift Tax ,
Grantors ,
IRS ,
Limited Liability Company (LLC) ,
Non-Compete Agreements ,
S-Corporation ,
Shareholders ,
Stocks ,
Succession Planning ,
Tax Court
A national study released in 2015 reported that “nearly half the residential purchases of over $5 million were made by shell companies rather than named people.”[ii] Because shell companies could often be formed without...more
1/5/2024
/ Beneficial Owner ,
Business Ownership ,
Corporate Transparency Act ,
Department of Finance ,
Disclosure Requirements ,
FinCEN ,
Limited Liability Company (LLC) ,
New York ,
Popular ,
Real Estate Investments ,
Shell Corporations ,
U.S. Treasury ,
US State Departments
The Office of the New York State Comptroller just released a new report that examines taxpayer migration trends during the pandemic. The report, which builds on an earlier analysis of pre-pandemic taxpayer migration trends,...more
12/8/2023
/ Administrative Law Judge (ALJ) ,
Capital Gains ,
Carried Interest ,
Compensation ,
Conciliation ,
Dividends ,
Double Taxation ,
Investment Management ,
K-1 ,
Limited Liability Company (LLC) ,
New York ,
Non-Residents ,
Partnerships ,
Relocation ,
Resident Status ,
State Taxes ,
Tax Appeals ,
Tax Credits ,
Tax Rates ,
Tax Returns ,
Taxable Income ,
Tribunals
NY Needs the Revenue-
A couple of weeks ago, the Tax Foundation released its latest “State Business Tax Climate Index,” which assesses a state’s tax system and compares it to that of other states. New York seems to be a...more
11/15/2023
/ Audits ,
Conciliation ,
Investors ,
Limited Liability Company (LLC) ,
Managing Members ,
New York ,
OCC ,
Penalties ,
Personal Liability ,
Responsible Person Liability ,
Sales Tax ,
State Taxes ,
Tax Liability ,
Tax Revenues
Since 1995 to the present, the LLC has emerged as the entity of choice for the vast majority of entrepreneurs. This form of business entity owes its success to the flexibility and to the tax benefits that it affords its...more
9/22/2023
/ Beneficiaries ,
C-Corporation ,
Capital Gains ,
Entrepreneurs ,
Federal Taxes ,
Limited Liability Company (LLC) ,
Net Operating Losses ,
Reasonable Compensation ,
S-Corporation ,
Shareholders ,
Small Business ,
Tax Liability ,
Trusts
NY’s Almost There-
Back in June of this year, New York’s legislature passed a bill that, if enacted, would create the first state-level public database with information regarding the ownership of limited liability...more
8/24/2023
/ Beneficial Owner ,
Business Entities ,
Business Ownership ,
Civil Liberties ,
Corporate Transparency Act ,
Department of Justice (DOJ) ,
Disclosure Requirements ,
FinCEN ,
IRS ,
Limited Liability Company (LLC) ,
New York ,
Privacy Act of 1974 ,
Tax Audits ,
Tax Fraud ,
Tax Liability ,
Tax Reform ,
Transparency ,
US State Departments ,
Whistleblowers
Do you feel as challenged as I do when someone asks you to explain the term “Bidenomics”? I know that it is predicated upon the imposition of higher taxes on businesses and their owners, which have not yet materialized....more
8/17/2023
/ Business Ownership ,
Buyers ,
Cancellation of Debt (COD) ,
Capital Gains ,
China ,
Debt ,
Fair Market Value ,
Federal Budget ,
Federal Taxes ,
Income Taxes ,
Insolvency ,
IRS ,
Limited Liability Company (LLC) ,
Recessions ,
S-Corporation ,
Startups ,
Tax Court ,
Third-Party
Losses Weren’t Always Bad-
Most tax advisers are aware that, prior to the Tax Reform Act of 1986 (the “TRA”),[i] the Code placed few limitations on the ability of an individual taxpayer to use deductions from a particular...more
7/27/2023
/ Business Losses ,
Capital Contributions ,
Deficit Reduction ,
IRS ,
Limited Liability Company (LLC) ,
Membership Interest ,
Net Operating Losses ,
Non-Recourse Loans ,
Partnership Interests ,
Partnerships ,
Passive Losses ,
Promissory Notes ,
Tax Court ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Losses ,
Tax Planning ,
Tax Reform
Another Change-
Last week BDO confirmed that it was going to convert from an entity organized as a limited liability partnership under state law to one organized as a corporation.
With that, BDO became the latest in a...more
6/29/2023
/ Attestation Requirements ,
Audits ,
Business Income ,
Business Profits ,
Business Taxes ,
C-Corporation ,
Corporate Conversions ,
Corporate Taxes ,
CPAs ,
Distribution Rules ,
Dividends ,
Earnings Tax ,
Employment Tax ,
Federal Taxes ,
Industry Consolidation ,
Limited Liability Company (LLC) ,
Mergers ,
Partnerships ,
Pass-Through Entities ,
Reorganizations ,
Restructuring ,
Shareholders ,
State Taxes
Decisions-
It is often the case that the optimal form of legal entity through which a business should operate, at least for income tax purposes, will depend in part upon the stage of its life cycle in which the business...more
6/20/2023
/ Acquisitions ,
C-Corporation ,
Federal Taxes ,
Investors ,
Limited Liability Company (LLC) ,
Liquidation ,
Partnerships ,
Pass-Through Entities ,
Reinvestment Funds ,
Shareholders ,
State Taxes ,
Tax-Free Transfers ,
Taxable Income
Hasta La Vista N.Y.-
Wealthy individuals continue to leave New York for tax friendlier jurisdictions.
Be Prepared-
Some of these taxpayers take a very methodical approach toward planning for their departure. They...more
5/18/2023
/ Administrative Law Judge (ALJ) ,
Audits ,
Capital Gains ,
Documentation ,
Domicile ,
Exit Tax ,
Income Taxes ,
Limited Liability Company (LLC) ,
Membership Interest ,
New York ,
Non-Resident Income Taxes ,
Purchase and Sale Agreements ,
Relocation ,
State Taxes ,
Tax Court ,
Taxation
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
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