Related Party Transactions Converting Gain Into Ordinary Income – Be Careful Out There
December 01, 2022 | Louis Vlahos | Income Tax
Related Party Transactions – In General To avoid the manipulation of tax consequences to which transactions between certain related[i] taxpayers may be susceptible, the IRS and the Courts generally require that such transactions be closely scrutinized to ensure that the form of the transaction reflects its underlying economic reality,[ii] and…
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Thanksgiving and. . . Taxes?
November 22, 2022 | Louis Vlahos | Federal
I am guessing that, later this week, many if not most of us will celebrate our uniquely American holiday, Thanksgiving Day. Hopefully, we will be fortunate enough to spend the day and share a meal with family and friends. With a bit of luck, politics will not find its way…
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Thinking About Leaving New York? Don’t Forget to Check Your Federal Tax Return
November 17, 2022 | Louis Vlahos | Business | Federal | New York State | State Tax Issues
The Mid-Terms With 50 seats in the Senate, the Dems still control that Chamber. A win in the Georgia runoff, however, may lessen the burden for Majority Leader Schumer by, perhaps, neutralizing the significance of a certain member of his own party.[i] Meanwhile, the GOP has claimed “control” of the…
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Sale to IDGT, Death of Grantor, Basis Step-Up: Treasury’s Priority Guidance & the Dems’ Loss of the House
November 10, 2022 | Louis Vlahos | Federal
Priority Guidance Plan Some folks eagerly await the release of a new album. Others camp outside of big box retailers to get the jump on holiday gifts. There are those who line up at box offices to purchase tickets for a concert that is months away. Then there are some…
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Trusts, the Death of a Shareholder, and The S Corporation Election
November 02, 2022 | Louis Vlahos | Business
The Key Person The closely held corporation is often a fragile creature. Too often, its continued success and well-being are overly dependent upon the continued involvement of one individual – namely, the founder and principal owner of the corporation’s business. This strong-willed individual may be responsible for the day-to-day management…
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LLC as S Corporation: Square Peg Meets Round Hole?
October 25, 2022 | Louis Vlahos | Business
Say It Isn’t So At different times over the course of the last thirty days or so, I have seen reports describing various plans to increase income taxes and/or wealth taxes on the “rich” that have either been endorsed or proposed by the likes of China’s President Xi Jinping, California’s…
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Cannabis & the Mid-Terms: What Tax Policy?
October 18, 2022 | Louis Vlahos | State Tax Issues | Cannabis
Mid-Terms In Sight On October 6, 2022, the President announced three changes in the Federal government’s policy toward cannabis: He pardoned all prior Federal offenses of simple possession of marijuana;[i] He urged governors to do the same with regard to state offenses;[ii] and He asked the Secretary of Health and…
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Private Foundations, Closely Held Businesses, And Distribution Requirements
October 11, 2022 | Louis Vlahos | Tax Exempt Organizations
“Show Me the Money”[i] Much has been written in recent months about how well the investment portfolios of private foundations have performed over the last several years. For example, a study conducted by the Council on Foundations reported that the average return on such investments in 2021 was 16.3 percent…
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Business Expenses Paid by Shareholder, But Whose Deduction Is It?
September 27, 2022 | Louis Vlahos | Business
Constructive Transfers It is axiomatic that the tax treatment of interactions between a closely held business and its owners will generally be subject to heightened scrutiny by the IRS, and that the labels attached to such interactions by the parties will have limited significance unless they are supported by objective…
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Dividing the Multi-Family Corporation
September 21, 2022 | Louis Vlahos | Business
Sibling Rivalry You have probably encountered family-owned corporations in which the founder’s offspring are involved in the business to varying degrees. They may even own some equity, typically having received such equity as gifts from their parents.[i] These situations often evolve in a way that they present challenging succession planning issues…
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