Transfers Within the Family Business: Gifts or “Ordinary Course” Transactions?
February 22, 2024 | Louis Vlahos | Business
Crossing the Streams[i] It is not uncommon, in the context of a business entity in which a family owns a controlling or substantial interest, for an adviser to encounter intersecting gift and income tax issues. This week’s post will consider one such instance in which the IRS was asked to…
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Shareholder-Transferee Liability for a Corporation’s Income Tax
February 14, 2024 | Louis Vlahos | Business | Income Tax
What Corporate Shield? Would you be surprised to learn that most shareholders of closely held corporations, and especially those with minority or merely passive interests, believe they cannot be held responsible for the tax obligations of their corporations? I, for one, would not. Over the years, I have both experienced…
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The Family-Owned Business, Stock Options, And Personal Goodwill – a Smorgasbord of Tax Issues
February 08, 2024 | Louis Vlahos | Business
Passing the Torch Many of us have encountered variations of the following scenario:  a parent owns and operates a business; one or more of their children are employed in the business; as the children mature and become more experienced and established in the business, some of them may want to…
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Intercompany Loan Treated As Constructive Distribution and Contribution
February 01, 2024 | Louis Vlahos | Business
Heads I Win, . . . When closely held corporations that are under common control engage in any intercompany transaction, it is prudent for the corporations and their shareholders to ensure that the transaction is being undertaken for a bona fide business reason. It is also important that the form…
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Nothing Lasts Forever –Expiring Tax Provisions
January 25, 2024 | Louis Vlahos | Uncategorized
The Long-Term View Among its core functions, federal tax policy seeks to encourage those behaviors among businesses that, in the long run, will have a lasting positive effect upon the nation’s economy as a whole.[i] Implicit in this approach toward tax legislation is the enactment of a set of relatively…
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Partnership Losses on Related Party Sales – The IRS Provides Some Clarification
January 16, 2024 | Louis Vlahos | Federal
Related Party Transactions Few individual owners of a closely held business would be surprised if you explained to them that the IRS and the Federal courts generally will subject many transactions between certain “related” persons to heightened scrutiny (a) to ensure that the related persons have not structured a transaction…
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NY’s LLC Transparency Act and NYC Real Estate – Albany Wants to Know the Secrets that You Keep[i]
January 04, 2024 | Louis Vlahos | Real Estate | State Tax Issues | CTA | FinCEN | LLC Transparency Act | Shell Companies
Hide and Seek A national study released in 2015 reported that “nearly half the residential purchases of over $5 million were made by shell companies rather than named people.”[ii] Because shell companies could often be formed without disclosing the individuals that ultimately owned or controlled them (i.e., their beneficial owners),…
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Taxes and the 2024 Election: ‘Tis the Season to Plan and Act
December 19, 2023 | Louis Vlahos | Federal
This is The End[i]   I have dreaded the year end for as long as I can remember. As a teenager and then as a young adult I associated the final quarter of the year, and especially the period beginning on Thanksgiving and ending on New Year’s Eve, with completing final…
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New York Can Be Stingy Giving Credit – Resident Tax Credit, That Is
December 07, 2023 | Louis Vlahos | New York State
Outmigration The Office of the New York State Comptroller just released a new report that examines taxpayer migration trends during the pandemic.[i] The report, which builds on an earlier analysis of pre-pandemic taxpayer migration trends, reveals there was much more movement out of the State than was thought initially. During…
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The Family Business – Compensating Family-Employees
November 28, 2023 | Louis Vlahos | Business | Income Tax
Mixing Holidays With Business Hope you had a good Thanksgiving Holiday. Some of us probably feel we ate or drank either too much or not enough, watched too much or not enough football, or spent too much time discussing politics and the state of the Dis-Union with family or friends.…
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