Income Tax

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? Time to shovel the driveway and clean off the car. Slippery sidewalks and roads. Ultimately, slush.

A few of you may have mused aloud about moving to Florida, perhaps oblivious to the cold that visited that state over the weekend.[i]

I’ll admit that I immediately wondered whether some enterprising individuals would show up, armed with the latest in snow removal technology, to offer their services.

Which brings me to another confession: I tried to recall whether snow removal services were subject to New York sales tax. A quick check and, “sugar” – turns out they are.[ii]
Continue Reading The Liquidation of a Partner’s Interest Under NYC’s Unincorporated Business Tax

1-12-22

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.[i]

It ended disturbingly, with the Arizona Democratic Party censuring Senator Sinema for having opposed the changes to the Senate’s filibuster rule proposed by Senate Majority Leader Schumer.[ii]

What occurred in the interim was anything but reassuring.
Continue Reading Revised Nonresident Audit Guidelines For New York Statutory Residence

Goodbye New York

Late last year, the U.S. Census Bureau released data showing population shifts across the country during 2021.[i] According to this information, New York lost 1.8 percent of its population.[ii]

It appears New York’s experience was not an isolated case. In a report issued earlier this month, the Tax Foundation – relying not only upon the Census Bureau’s data but also upon the data sets of some major moving companies – concluded that “[t]he picture painted by this population shift is a clear one of people leaving high-tax, high-cost states for lower-tax, lower-cost alternatives.”[iii]
Continue Reading Leaving New York – But What About One’s New York Business?

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 filing and payment obligations imposed upon taxpayers – both personal and business- or investment-related – including the extended filing due dates, one may reasonably assert there is no tax “season,” as such term is commonly understood, because tax obligations run throughout the year.
Continue Reading ‘Tis the Season . . . to Recall Taxes?

 Down to the Wire?

“I have wondered at times what the Ten Commandments would have looked like if Moses had run them through the U.S. Congress.” – Pres. Ronald Regan

That line probably describes the exasperation with which many Americans are observing the behavior of their representatives in Congress these last few weeks.

At this point, a number of folks are wondering whether the eviscerated version of the legislation proposed by the Administration in April of this year, and passed by the House last month[i], will be enacted into law before the end of this year, early next year, or not at all.
Continue Reading The Tax-Deferred Rollover – Some Considerations

Not Selling Your Business This Year?

Beginning shortly before the House Ways and Means Committee released its version of the President’s Build Back Better plan, several posts on this blog have explored the uptick in M&A activity as the owners of many closely held businesses have sought to sell them before the effective dates[i] of any new or increased federal income taxes.

In most cases, the individuals disposing of these businesses were already considering – if not yet committed to the timing of – their exit. Their concern over increased taxes,[ii] however, has accelerated the decision to sell for many; increased taxes translate into fewer net proceeds and a lower return on their years of investment.[iii]
Continue Reading Not Selling Despite Tax Increases? Review the Buy-Sell Agreement Among Owners

Tax the Rich?

The President’s plan for a tax regime that would ensure the rich pay their “fair share” of the cost of implementing his programs has come one step closer to being realized . . . maybe . . . well, sort of . . . at least in part. You know, half a loaf (unless it’s whole wheat) is better than none. Voting strictly along party lines,[i] the House of Representatives on Friday[ii] morning passed an approximately $1.75 trillion version of Mr. Biden’s $3.5 trillion Build Back Better plan by a vote of 220 to 213.[iii]
Continue Reading One Step Closer to “Building Back” – Where Do Federal Transfer Taxes Stand?

Having Fun?

Hope you had a decent weekend. Perhaps you did something interesting, maybe even fun, like some end-of-season apple picking? Or maybe you had a cider donut with some hot coffee at a farm stand you stumbled upon on your way back from attending a football game at a small college? That said, few experiences are better than a midafternoon walk in a quiet park under a blue sky, with the sun on your back like a blanket wrapped over your shoulders to fend off the autumn chill.
Continue Reading Selling to Private Equity? Maybe You Should “F Reorg” First

Tax the Rich?

A few days ago, an opinion piece that appeared in the Wall Street Journal[i] began as follows:

“President Biden’s effort to pass the largest tax increase in U.S. history is based on the verifiably false claim that Americans with high incomes don’t pay their ‘fair share.’ In no other country do the rich bear a greater share of the income-tax burden than they do in the U.S.”

The author briefly described data from the OECD, the Joint Committee on Taxation, and the Congressional Budget Office which, the author states, support the above claim.[ii]
Continue Reading Maybe Tax the Rich, but Not The Conversion of S corps into Partnerships – What Gives?

9-27-21

September 2021

What was your month like?

If you’re a transactional professional – a class in which I include those who advise clients on the purchase and sale of businesses and investment assets, as well as those who assist clients in developing and implementing estate plans – it may be that the Earth’s 24-hour day, not to mention your own physical limitations, are preventing you from satisfying all your obligations as thoroughly and as quickly as you would like.[i]
Continue Reading Tax Hikes, Senator Manchin, and Effective Dates – OH MY!