Recent Publications - Tax

Increased Capital Gain Rate, Nonresident Aliens, and ESBTs
August 9, 2021 | Tax

Compare and Contrast

Have you spoken to anybody about the infrastructure bill on which the Senate is about to vote? I know I haven’t, except to explain that Speaker Pelosi has stated the House will not consider the bill unless and until the Senate also adopts a budget resolution for the President’s tax and

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Step Transaction or Substance Over Form? Loss Disallowance in Any Case
August 2, 2021 | Tax

The Dog Days[i]

I’ve never much cared for the month of August. In New York, at least for me, the eighth month of the year – named by the Roman Emperor, Augustus, to honor himself[ii] – evokes memories of very warm, very humid days, and anxious thoughts about the upcoming school year.[iii]

Although I no

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Capital vs Ordinary Loss When An Investment Goes South
July 26, 2021 | Tax

Capital Loss

If the amount realized by a taxpayer upon the sale of a partnership interest to a third party is insufficient to restore to the taxpayer their adjusted basis for the interest – i.e., their unrecovered investment in the partnership – a loss is sustained equal to the difference between such adjusted basis and

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Employee-Shareholders, Reasonable Compensation And Employment Taxes
July 19, 2021 | Tax

Movement Toward Tax Increases

You may have read last week that Democrats on the Senate Budget Committee announced they had reached a deal on a budget resolution that will enable them to bypass Senate Republicans on the way to enacting most of the “social infrastructure” programs called for under the President’s American Families Plan.[i] Significantly,

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Bona Fide Intercompany Loan – Are you Sure?
July 12, 2021 | Tax


The Code is chock-full of provisions that will challenge the intellectual capacity, not to mention the patience, of most tax professionals. The complexity of these rules does not arise out of some sadistic intent on the part of Congress, the Treasury, or the IRS to torment taxpayers and their advisers;[i] rather, it is often

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Like a Good Neighbor, New York is Still Free to Tax You – Sorry for the Inconvenience
July 6, 2021 | Trusts & Estates | Tax

NH vs MA

Last week, the U.S. Supreme Court denied New Hampshire’s request that the Court exercise its original jurisdiction under the Constitution[i] to hear and resolve a conflict involving the taxation by Massachusetts of income earned by certain residents of the Granite State.[ii]

The disagreement between the two jurisdictions originated when Massachusetts, in response

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Tax Increases in Sight? Time to Sell the Business? Focus on Economics
June 28, 2021 | Trusts & Estates | Tax

Not Good

As Mr. Biden settled into the White House, and as the Democrats began planning how to best utilize their slim Congressional majority to enact and pay for their sweeping legislative agenda, the principal concern among most owners of successful closely held businesses was Mr. Biden’s proposal to almost double the federal income tax

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Tax Changes in the Offing? “Close Scrutiny” of Business Owners’ Economic Benefits Remains a Constant
June 21, 2021 | Tax

I Read the News Today

Much of today’s news is dominated by the future of the Administration’s broadly defined infrastructure plan. Discussions among “those in the know” inevitably turn into debates over the wisdom of pursuing the bipartisan legislative approach favored by centrists from both sides of the political divide as contrasted with the “go-it-alone

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Partners, S Corp. Shareholders and Biden’s 2022 Revenue Proposal: No More Business as Usual
June 14, 2021 | Tax

What A Ride

No one anticipated that the Administration’s proposed tax increases would fly through Congress easily – at least no one residing in a state in which the recreational use of marijuana has not been legalized. Query, however, whether anyone foresaw the rollercoaster-like developments of the last several days.

The G-7

As the White

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Biden’s 2022 Revenue Proposal, Profits Interests, and The Alchemy of Compensation
June 7, 2021 | Tax


Last week, we considered several of the revenue proposals included in the Biden Administration’s 2022 Budget that are probably of interest – or should we say, “of concern”? – to the owners of closely held businesses.[i]

Rate Hikes

The proposed increases in the federal corporate income tax rate – for C corporations[ii] and for

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