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Basic Principles

What does the term “gross income” mean to you? For most folks, it refers to the amount of money that is paid to someone in exchange for their services or property, or for the use of their property.

The Code describes the gross income of a taxpayer more expansively to mean all of the taxpayer’s income from whatever source derived, and in whatever form realized.[i] In other words, any accretion in wealth realized[ii] by a taxpayer is included in gross income.

Continue Reading When a Non-Shareholder Contributes Capital to a Corporation
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I’m delighted to share that FeedSpot has ranked TaxSlaw 21 in its list of the 100 Best Tax Blogs to Follow in 2026.

This blog is a labor of love, and it feels good to know that my weekly efforts have gained some recognition.

Sending a special thank you to my loyal readers who link to my content on social media and ask thought-provoking questions about the posts.

Keep on reading (and sharing)!

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The Latest

The IRS recently announced its intention to propose regulations relating to the 21 percent tax[i] imposed with respect to any “excess” executive compensation paid by certain tax-exempt organizations, including public charities and private foundations (i.e., charitable organizations),[ii] to their covered employees.[iii]

This news followed by almost a year the amendment to the definition of “covered employee” made by OBBBA,[iv] which represents Congress’s latest effort at trying to limit the amount of executive compensation payable by a charitable organization.  

Continue Reading Congress’s Continuing Quest to Restrict Executive Compensation at Charitable Organizations, With a Twist
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Can It Get Worse?

I’m certain that most of us were disappointed with the Appellate Department’s decision last week in Prof. Zelensky’s continuing dispute with New York over its application of the notorious “convenience of the employer” test;[i] disappointed, but not entirely surprised.[ii]

One can still hope that the Courts will one day become less deferential toward the tax folks in Albany.

Continue Reading Applying New York’s Convenience Rule to a Former Resident, Truly Remote Non-Resident Employee
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Here It Comes

According to many, the long-awaited intergenerational transfer of assets from the Baby Boomer generation, and from what remains of the Silent Generation, to younger members of their families[i] – estimated by some to exceed $100 trillion in total, worldwide, over the next two decades – is well under way.

Most of this shift in wealth will occur within families whose members already count themselves among the wealthiest on the planet.[ii] Indeed, according to one source, “[t]he wealthiest 10 percent of households will be giving and receiving a majority of the riches.” Within that group, the top 1 percent holds about as much wealth as the bottom 90 percent, and it “will dictate the broadest share of the money flow.”[iii]

Continue Reading With Tax Increases Lurking Just Over the Horizon, and With Large Dispositions of Wealth Underway, Now’s the Time to Identify and Correct Earlier Missteps
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A client tells you that many, if not most, of their employees work remotely. How would you interpret that statement? It’s a matter of context, right?

In most cases it suggests that the employer-client has some sort of hybrid arrangement with their employees that requires them to be present at the employer’s place of business two-to-three days a week, and allows them to work from home the remaining days.

Continue Reading When is a Remote Employee Not Remote Enough to Escape New York Tax?
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Personal Use

“But it’s mine!”

That’s not some toddler speaking.

You’ve just advised an entrepreneurial client for the “Nth” time that they should not treat the corporation[i] they control, and out of which they operate their business, as their personal bank account.

Such behavior may jeopardize the limited liability protection that the corporate shield would otherwise afford a shareholder. It may also expose the shareholder to unexpected and unwelcome income tax consequences, as we’ll see shortly.

Continue Reading If I Own the Corp, and the Corp Owns the Assets of the Business, Aren’t  Those Assets Mine?
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Encourage But Verify

“It is more blessed to give than to receive.”[i]

Undoubtedly, you’re familiar with the foregoing proverb that seeks to encourage “charitable behavior” among the members of society, and to dissuade them from pursuing only their innately selfish proclivities.[ii]

The Code recognizes the conflict that an individual taxpayer may experience in the course of deciding whether to make a charitable contribution of a property, or to retain such property (or the proceeds from its sale) for the individual’s own use.

Continue Reading “For Want of a Nail” – A Poor Reason to Lose a Charitable Contribution Deduction
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State of the Economy?

According to statistics released by the Administrative Office of the U.S. Courts for the twelve-month period ending Dec. 31, 2025, bankruptcy filings by businesses rose 7.1 percent and non-business filings increased by 11.2 percent. Total filings have increased each quarter since June 2022, though they remain lower than historical highs.[i]

Do these statistics somehow reflect the state of the U.S. economy, generally?

Continue Reading No Matter How Bad it Gets . . . Pay Your Withholding Taxes?
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Acquiring a NYC Residence

According to a recent report, Manhattan boasted the most expensive residential real estate market in the country last year. “Manhattan residents spend nearly five times the national average for housing.”[i]

That shouldn’t surprise anyone, considering what has been, at least up to this point, Manhattan’s status as the nation’s financial capital, its unmatched cultural offerings, its urban amenities and lifestyle, the high salaries that enable buyers to bid up prices, and the limited supply of housing.

Continue Reading Purchasing Residential Property in NYC: Coordinating State Tax and Beneficial Ownership Rules