Latest Articles

  • Defending New York Residency Audits that Target Capital Gains

    By:
    Jack Trachtenberg, Esq.
    |
    Feb 1, 2014
    It is no secret that New York maintains one of the most aggressive residency audit programs in the country. By some accounts, the New York State Department of Taxation and Finance generates more than $300 million per year in personal income tax revenue to a large extent by challenging the residency status of taxpayers who claim to have made their homes in other states. The largely subjective nature of the inquiry, combined with a high burden of proof for the taxpayer and frequent lack of available records to meet that burden of proof, feeds the aggressiveness of the department’s efforts to collect revenue. CPAs should be aware of the department's history and policies in this area.
  • Foreign Investment in the U.S.: A FIRPTA Introduction

    By:
    Alicea Castellanos, CPA, TEP
    |
    Jan 2, 2014
    They love us overseas. Yes, foreign investors want to buy U.S. real estate because of the weakening dollar, but there's more to it than that: The United States offers economic and legal transparency, backed by appropriate legal protections and a predictable regulatory environment. It’s no wonder that according to a 2013 survey from the Association of Foreign Investors in Real Estate (AFIRE), four of the five top global cities for investment are in the United States. But to take advantage of such desirable opportunities, investors, and the CPAs who serve them, need to familiarize themselves with the complex tax rules.
  • Executive Compensation Limits under NYS Executive Order #38

    By:
    James E. Rocco Associates, Inc.
    |
    Jan 1, 2014
    In January 2012, New York Governor Andrew Cuomo issued Executive Order #38 (“EO38”), the latest in a series of regulatory actions to curb the use of public funds for excessive administrative expenses or executive compensation in exempt organizations. The rules are strict--and complex.
  • Planning for the ACA Net Investment Income Tax

    By:
    Chad L. Reyes and Cliff C. Keeling
    |
    Jan 1, 2014
    Somewhat overlooked in the Supreme Court’s decision upholding the Patient Protection & Affordable Care Act—“Obamacare”—is the fact that individuals, trusts and estates will be subject to a new 3.8 percent healthcare surtax on “passive investment income” effective as of Jan. 1, 2013.
  • Tanenblatt v. Commissioner: Valuation Methods in Real Estate

    By:
    Martin Greene, CPA/ABV, ASA
    |
    Jan 1, 2014
    Tanenblatt v. Commissioner involved the fair market value of a 16.67 percent minority membership interest in a New York LLC whose principal holding was a commercial building. The resulting decision has important implications for the valuation—and taxation—of real estate and the use of experts.
  • Tax Implications of Foreign Pension Plan Participation

    By:
    By James Cassidy, CPA
    |
    Mar 1, 2012
    As a result of IRS offshore compliance initiatives, recently enacted legislation, and new informational reporting requirements, tax preparers and U.S. participants in foreign pension plans must carefully evaluate how a foreign-based retirement plan is structured and valued. Because many U.S. citizens who have repatriated or are currently residing and working abroad, as well as foreign nationals currently residing in the United States, either have retirement assets abroad or are currently participating in a foreign plan, practitioners and taxpayers should evaluate the reporting requirements, follow guidance for preparing accurate tax and information returns and strive to minimize both taxes and onerous penalties.

Tax Quote

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- Mark Twain

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