• Post-TCJA Considerations for Exempt Organizations

    By:
    Catherine Petercsak, CPA, and Kerri N. Bogda, CPA
    |
    Jul 1, 2018

    On Dec. 22, 2017, President Donald Trump signed the Tax Cut and Jobs Act (the Act) into law. The Act is the most comprehensive change to the U.S. tax code since 1986. In some way, the new rules affect almost every individual, business, and tax-exempt entity. Most of the provisions of the Act are effective for tax years beginning after Dec. 31, 2017.

  • Accountants and Divorce Attorneys: A Marriage Made in Congress

    By:
    Joseph A. DeMarco, JD
    |
    Jul 1, 2018
    As divorce attorneys seek to navigate the impact of the Tax Cuts and Jobs Act (“TCJA”) on divorce cases, one thing appears clear: Effective advocacy for matrimonial clients will require greater reliance on accounting professionals. 
  • U.S. Taxation of U.S. LLCs: Major Considerations in the International Context

    By:
    Michael W. Galligan
    |
    Jul 1, 2018
    Many countries make a strict distinction between corporations and partnerships for tax purposes and do not have a “check-the-box” election or, if they do, it does not necessarily follow the U.S. scheme. 
  • Both Sides Now: The Increasing Importance of Focusing on Both Sides of Competence for Families and Family Owned Enterprises

    By:
    Patricia Annino, Esq., JD, LLM (taxation)
    |
    Jul 1, 2018

    We are in a global societal phase change and are living in a non-linear world. All of us know someone who is one year old, and most of us know individuals who are older than 100. Many generations now coexist—entwining families emotionally, intellectually, physically, and financially in unprecedented ways. Accountants have never been in the position of planning for and impacting so many generations at once.

  • Rising Interest Rates are an Opportunity to Deduct Capital Loss Carryovers

    By:
    Thomas J. Boczar and Jeff Markowski
    |
    Jun 1, 2018

    Some companies currently face two concurrent challenges—first, how to accelerate the utilization of otherwise non-deductible capital loss carryovers for tax purposes and second, how to guard against the impact of rising interest rates.

  • Does Lender Management Provide Family Offices with a Roadmap for Obtaining an IRC section 162 Trade or Business Expense Deduction in Connection with Providing Investment Management Services?

    By:
    Kevin Matz, Esq., CPA, LLM (taxation)
    |
    Jun 1, 2018

    Lender Management, LLC v. Commissioner of Internal Revenue provides family offices with a potential roadmap for obtaining trade or business expense deductions under IRC section 162 in connection with rendering investment management services.

  • Is That Loss Actually Deductible On Your Cannabis Investment or Loan?

    By:
    Peter Metz, CPA, and John Pellitteri, CPA
    |
    Jun 1, 2018

    At the federal level, cannabis businesses that “touch the leaf” are taxed on the sum of revenue less cost of goods sold, according to IRC section 280E. Businesses that do not touch the leaf—meaning those that indirectly benefit from cannabis activity, such as suppliers and landlords—can also claim other deductions. But if there is a loss on your investment or loan, will the loss be deductible? Although the investment might appear rosy right now, storm clouds could one day come to this industry. 

  • U.S. Taxation of U.S. Limited Liability Companies

    By:
    Michael W. Galligan
    |
    Jun 1, 2018

    This is the first of a three-part series on an introduction to the cross-border tax treatment of U.S. limited liability companies. Please look for the next two parts in the July and August issues.

  • Taking Full Advantage of the R&D Tax Credit: Tips for Identifying, Gathering, and Documenting a Sustainable Claim

    By:
    Peter J. Scalise
    |
    May 1, 2018
    In 1981, the U.S. economy was in a recession, and research-and-development jobs were declining throughout the country. In response, Congress passed the Economic Recovery Tax Act of 1981, which included the Research and Development Tax Credit Program (hereinafter “RTCP” or “RTC”), enacted into the IRC. 

  • Powerful Domestic Trust Strategies for International and Cross-Border Families

    By:
    Al W. King III, JD, LLM (tax law) and Jack R. Brister
    |
    May 1, 2018
    There has been a powerful evolution taking place over the last decade of international families utilizing the United States for their trusts. Previously, the main reasons for an international family to establish a U.S. situs trust were if they owned U.S. property or if they had a U.S. green card or U.S. citizen family members. 
  • New York State is Auditing Federal Tax Issues: Work-Related Education Expenses

    By:
    Brian Gordon, CPA
    |
    May 1, 2018
    The New York State Tax Department has increased their audits involving federal tax issues.  This may be due to a reduction in IRS audit personnel, but regardless of the reason, these issues affect both federal and New York State taxes and they therefore have the right to audit. 
  • Social Security Filing Strategies Under the New Rules

    By:
    Ash Ahluwalia, MBA, CFP
    |
    May 1, 2018

    For most Americans, social security retirement benefits typically represent 30 to 60% of their retirement income. Yet according to the National Social Security Association, LLC, over 90% of social security recipients receive less money than they are entitled to receive. For many filers, this can represent tens of thousands of dollars in lost retirement benefits.


  • The New Qualified Business Income Deduction Under IRC Section 199A

    By:
    Ellen Seiler Brody, Esq., and Vivek A. Chandrasekhar, Esq.
    |
    Apr 1, 2018
    Public Law 115-97 (the Act) provided a significant benefit to corporate taxpayers. While the highest marginal corporate tax rate was previously 35%, corporations now face only a flat 21% tax. In an attempt to provide parity for non-corporate taxpayers, the Act introduces a new IRC section 199A, which provides a 20% deduction for qualified business income earned by individuals, trusts, and estates. 
  • New York’s Corporate Nexus & Apportionment Rules—Review & Update (Part 2 of 2)

    By:
    Mark S. Klein and Daniel P. Kelly
    |
    Apr 1, 2018
    We’re back to continue our discussion regarding the implementation and development of New York’s 2015 corporate tax reform.  Even though the law is nearly four years old, both tax practitioners and tax administrators struggle to provide form to the framework created by the new law. 
  • PFICs: Current State of Affairs

    By:
    Paul H. Dailey, CPA, MBA
    |
    Apr 1, 2018
    Passive Foreign Investment Companies (PFICs) are still alive and kicking! The new law made only one structural change to the PFIC regime: limiting the PFIC insurance exception. 
  • Self-Employment Tax for Partnerships, LLC and LLP Members

    By:
    Dean L. Surkin, JD, LLM
    |
    Apr 1, 2018
    The advent of the Tax Cuts and Jobs Act of 2017 has started to affect the entity structures that taxpayers choose for their businesses. Some practitioners are recommending an expanded use of C corporations while others are recommending maximum utilization of the qualified business income (QBI) deduction. 
  • New York’s Corporate Nexus & Apportionment Rules: Overview & Update

    By:
    Mark S. Klein and Daniel P. Kelly
    |
    Mar 1, 2018
    New York’s corporate franchise tax reform, which passed in 2014 and became effective Jan. 1, 2015, was groundbreaking in numerous ways. (The Administrative Code of New York City was subsequently amended to adopt many, but not all, of the same revisions for city corporate tax purposes.) 

  • Relationship Capital: How to Evaluate Personal Goodwill Prior to Selling a Closely-Held Business

    By:
    Ladidas Lumpkins, CPA, JD, LLM (Taxation) and Roman Katz, JD
    |
    Mar 1, 2018
    How do you evaluate the financial power of relationships? An iconic scene from the movie The Devil Wears Prada offers great insight, particularly when powerful fashion editor Miranda Priestly recounts how she persuaded the magazine’s publisher to pass over a younger challenger for the job.
  • Understanding Unrelated Business Income Tax

    By:
    Israel Tannenbaum
    |
    Mar 1, 2018

    Facing increased competition for donor dollars and a growing charitable base, many tax-exempt organizations have set their sights on income diversification. As part of this quest for alternative revenue streams, non-profits are expanding into businesses traditionally dominated by taxable entities.  While this can be a boon to an organization’s resources, it can potentially subject tax-exempt entities to reporting and paying taxes, the most common of which is the tax on unrelated business income. 

  • Cybersecurity for Accountants

    By:
    Patrick Buono
    |
    Mar 1, 2018
    According to Forbes magazine, the global cost of cybercrime will reach $2 trillion by 2019. Warren Buffett considers cyber attacks “a bigger threat to humanity than nuclear weapons,” and Ginni Rometty, IBM President & CEO, describes cybercrime as “the greatest threat to every profession, every industry, every company in the world.” 

 
Views expressed in articles published in Tax Stringer are the authors' only and are not to be attributed to the publication, its editors, the NYSSCPA or FAE, or their directors, officers, or employees, unless expressly so stated. Articles contain information believed by the authors to be accurate, but the publisher, editors and authors are not engaged in redering legal, accounting or other professional services. If specific professional advice or assistance is required, the services of a competent professional should be sought.