The Income Tax
The federal government is the largest employer in the U.S., and provides the greatest number and variety of services and products in the country. To fund its operation – i.e., to pay its bills – the government needs a substantial and steady stream of revenue.[i]
Continue Reading When is the Receipt of “Value” Includible in Gross Income?Gown vs. State
It is no secret that the Administration[i] is not pleased with many tax-exempt organizations, especially those “elite” private colleges and universities that, according to the White House and other observers, are hostile toward individuals and organizations that express conservative opinions or openly support “Western values.” The same institutions are often accused of promoting what has been described by some as virulent “anti-Americanism.”
Continue Reading Proposed Regs, Discrimination by Private Schools, and The Loss of Tax-Exempt StatusWhen Paths Cross
For years I have told practically anyone who would listen that there are two kinds of “codes”: those with an upper case “C”, like the Ten Commandments and the Internal Revenue Code (the “Code”), and those with a lower case “c”, like the Bankruptcy code.[i]
There are times, however, when the veil separating the rarefied world of tax from the gritty environment of the bankruptcy bar is pierced, and practitioners from one world slip through the opening to engage with their colleagues in the other.[ii]
Continue Reading The S Corporation in Bankruptcy – To Whom Does its Passthrough Tax Status Belong?Taxes Galore
There are so many things that New York City has in abundance. Some are good while others are less desirable. It often depends upon whom you ask. One item that will certainly find its way into both categories is taxes – again, it’s a matter of perspective.
While many investors, business owners, workers, and retirees generally consider taxes an abomination, others see them as vital to a functioning society that, under the oversight of its elected representatives, provides a range of public services and a comprehensive social safety net.[i]
Continue Reading Taxing NYC’s “Wealthy” By Reducing The Credit For Unincorporated Business TaxBest of Times
You landed a hard-to-come-by position at a prestigious Manhattan-based company. The hours spent at the office, including most weekends and many holidays, were outrageous by any reasonable person’s measure. Your combined federal, New York State and City income tax burden[i] was hefty, and the cost of living in the City[ii] was daunting. The work was both challenging and demanding. It was also exhilarating, and there were opportunities for advancement, the annual compensation was good, and the year-end bonuses were generous.
Continue Reading Does the Pied-a-Terre Tax Apply to Real Property Owned by a Statutory Resident of NYC?An About-Face?
Earlier this year, the federal Court of Appeals for the Fifth Circuit[i] ruled that the U.S. Tax Court had misinterpreted the Code’s self-employment tax rules as they apply to individuals who hold limited partnership interests in a state law limited partnership, notwithstanding that such individuals also render services to the partnership of a nature that is integral to the limited partnership’s business.[ii]
Continue Reading Identifying “Limited Partners” for the Exclusion from Self-Employment Tax – The Fifth Circuit Changes its Mind…Sort ofBasic 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 CorporationI’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)!
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 TwistCan 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