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
Economic Downturn?
The Federal Reserve’s Open Market Committee announced last week that it would raise the Fed’s baseline interest rate by 0.75 percentage points, the largest such increase since 1994. ...more
6/21/2022
/ China ,
Coronavirus/COVID-19 ,
Economic Downturn ,
False Claims Act (FCA) ,
Federal Reserve ,
Financial Markets ,
Interest Rates ,
Lenders ,
Qui Tam ,
Recessions ,
Tax Evasion ,
Unemployment ,
Whistleblowers
The Housing Market-
During the first quarter of 2022, the housing market accounted for 16.7 percent of gross domestic product (“GDP”). This figure represents a return to historic norms following the substantial reduction...more
6/15/2022
/ Affordable Housing ,
Capital Gains ,
GDP ,
Great Recession ,
Housing Market ,
Internal Revenue Code (IRC) ,
Inventory ,
Limited Liability Company (LLC) ,
Mortgages ,
Real Estate Brokers ,
Real Estate Development ,
Real Estate Investments ,
Real Estate Market ,
Tax Court ,
Tax Returns
A More Cautious Approach-
Compared to the torrid pace of M&A transactions last year, the current year seems rather pedestrian. That is not to say businesses are not being sold; they are....more
6/7/2022
/ Buyers ,
Capital Gains ,
Compensation ,
Deferred Compensation ,
Earn-Outs ,
Interest Income ,
Purchase Agreement ,
Purchase Price ,
Sellers ,
Selling a Business ,
Target Company
Don’t Do It-
There are certain generally accepted “dos and don’ts” of which almost every investor is certainly aware. For example, do not put all your eggs in one basket; if an investment seems too good to be true, stay...more
5/31/2022
/ Capital Losses ,
Corporate Taxes ,
Debt ,
Estate Planning ,
Fair Market Value ,
Installment Agreements ,
Intangible Property ,
Investment ,
Investors ,
Limited Liability Company (LLC) ,
Liquidation ,
Partnerships ,
Related Parties ,
S-Corporation ,
Sale of Assets ,
Shareholders ,
Stocks ,
Tangible Property ,
Tax Liability
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
Sale of the Business-
Imagine Client has just received an attractive, all cash offer for the sale of their business; there is no financing contingency. The buyer has proposed a cash-free and debt-free deal....more
5/17/2022
/ Balloon Payments ,
Borrowers ,
Cash Transactions ,
Debt ,
Fair Market Value ,
Income Taxes ,
Installment Agreements ,
Lenders ,
Promissory Notes ,
Secured Debt ,
Selling a Business ,
Tax Deferral ,
Tax Liability ,
Tax Returns ,
Trusts
Limited Liability?
Many individual taxpayers who invest in a closely held business, including one organized as a corporation, fail to appreciate there are circumstances in which they may be held personally liable by a...more
5/10/2022
/ Audits ,
Closely Held Businesses ,
Corporate Taxes ,
Duty to Act ,
Financial Transaction Tax ,
Income Taxes ,
Information Document Requests ,
New York ,
Personal Liability ,
Sales Tax ,
Shareholders ,
Tax Appeals
An often-explored theme of this blog is the frequency with which similarly situated owners of similarly situated closely held business, facing a similar set of economic circumstances, and presented with a similar set of...more
5/3/2022
/ Appellate Courts ,
B Corporation ,
C-Corporation ,
Closely Held Businesses ,
Compensation ,
Dividends ,
Entrepreneurs ,
Management Fees ,
Reasonable Compensation ,
Shareholders ,
Stocks ,
Tax Court ,
Tax Deductions ,
Written Agreements
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
“Déjà vu All Over Again”-
The White House last week released the President’s Budget for the Fiscal Year 2023. The Budget is ambitious, but its “investments,” we are told, “are more than paid for with tax reforms focused on...more
4/8/2022
/ Capital Gains ,
Capital Gains Tax ,
Estate Tax ,
Fair Market Value ,
Family Businesses ,
Federal Budget ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Grantor Trusts ,
Income Taxes ,
Joe Biden ,
Rule Against Perpetuities ,
Taxable Income ,
Transfer Taxes ,
Trusts ,
Wealth Tax
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
“Yes” to Art, “No” to Tax-
Private patronage of the arts. For centuries, artists, museums, and galleries have depended, in no small part, upon the largesse of wealthy families.
Today, as in the past, many of these...more
3/29/2022
/ Art ,
Art Collections ,
Exclusions ,
Financial Transaction Tax ,
Fine Art ,
Good Faith ,
Leases ,
Limited Liability Company (LLC) ,
Private Resales ,
Property Ownership ,
Purchase Price ,
Resales Agreements ,
Retail Sales ,
Sales Tax ,
Tax Appeals ,
Tax Tribunal ,
Trustees
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)
Last Week-
What a week it was.
It began relatively well, with the Cowboys losing the NFC wild card game, albeit to a California team.
It ended disturbingly, with the Arizona Democratic Party censuring Senator Sinema...more
1/24/2022
/ Audits ,
Domicile ,
Holding Periods ,
Joe Biden ,
Jurisdiction ,
Lawful Permanent Residents ,
Non-Residents ,
Out-of-State Employees ,
Property Owners ,
State Taxes ,
Sustainability ,
Tax Increases ,
Taxable Income
Goodbye New York-
Late last year, the U.S. Census Bureau released data showing population shifts across the country during 2021. According to this information, New York lost 1.8 percent of its population...
...more
1/18/2022
/ Apportionment ,
C-Corporation ,
Census Bureau ,
Closely Held Businesses ,
Corporate Taxes ,
Domicile ,
Exit Tax ,
Income Taxes ,
Middle Market ,
New York ,
Pass-Through Entities ,
Residence Status ,
Small Business ,
State of the State ,
Tax Advice ,
Tax Increases ,
Tax Relief ,
Taxable Income
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