• Inside the Black Box: Executors’ Elections

    By:
    Theresa McGinley, JD, Kevin Duncan, JD, and Brian Conboy, JD
    |
    Jan 1, 2020

    During the administration of a decedent’s estate, an executor performs four basic functions: identifies and collects the decedent’s assets; determines cash needs for payment of expenses and debts, and raises cash to pay the expenses; files any required tax returns, including the decedent’s final personal income tax returns, gift tax returns, estate tax returns, and fiduciary income tax returns, and pays associated taxes; and distributes assets in accordance with the terms of the decedent’s Last Will and Testament.

  • A Look into the Final Treasury Regulations on the Temporarily Expanded Federal Gift and Estate Tax Exemptions

    By:
    Kevin Matz, JD, Esq., CPA, LLM
    |
    Jan 1, 2020
    On Nov. 26, 2019, the U.S. Department of Treasury and the IRS published final regulations addressing the effect of recent legislative changes to the basic exclusion amount allowable in computing federal gift and estate taxes.
  • A Spotlight on New York State Residency Requirements

    By:
    Mark A. Nickerson, CPA, CMA, MBA
    |
    Jan 1, 2020
    In October 2019, President Donald Trump became the most recent high-profile individual to announce his departure from New York, choosing to make Florida his place of permanent residence. The move is heavily, if not entirely, motivated by the fact that Florida does not have any personal income or estate tax, whereas New York’s top income tax rate is 8.82% (and even higher for individuals living in New York City) and the top estate tax rate is 16%.
  • Excess Benefit Transactions

    By:
    Magdalena M. Czerniawski, CPA, MBA, and Robert Lyons, CPA, MST
    |
    Jan 1, 2020
    Excess benefit transactions (EBT) are an outgrowth of IRC section 4958, which was first introduced in 1996 and modified in 2003. Its purpose was to punish the wrongdoer but not necessarily revoke the exemption of what may be a perfectly good charitable organization with bad management.
  • A Review of Two Key Provisions of the Taxpayer First Act

    By:
    Frank G. Colella, Esq, LLM, CPA
    |
    Dec 1, 2019
    The Taxpayer First Act (TFA), signed into law on July 1, 2019, established the new IRS Independent Office of Appeals. While most of the new provisions simply formalized current Appeals practice and procedure, the TFA specifically codified [in the new IRC section 7803(e)] the right to an IRS appeal when a taxpayer has received a statutory notice of deficiency, commonly referred to as the 90-day letter.
  • Qualified Opportunity Zones: A Family Office Perspective

    By:
    Shashi Singal, CPA, MSA, CA
    |
    Dec 1, 2019
    Family offices, in their role as wealth-management advisors, are tasked with educating families and presenting them with the most tax-efficient options for transferring wealth, while also taking into consideration the lifestyle needs of the family. One area of interest and concern to family offices are Qualified Opportunity Zones (QOZ), as well as businesses located in such areas and Qualified Opportunity Funds (QOF).
  • A Case of New York State Statutory Residency

    By:
    Brian Gordon, CPA
    |
    Dec 1, 2019

    A case concerning New York State statutory residency for the years 2012 and 2013 was recently decided by an Administrative Law Judge (ALJ) in the matter of Nelson Obus. This case reveals specifics of the law surrounding statutory residency, and how that law can potentially trip up taxpayers.

  • Carrying the Day with Carried Interest Wealth Transfer Planning for Fund Principals

    By:
    N. Todd Angkatavanich, JD, LLM, Joel Friedlander, JD, Joshua Zimmerman, JD, LLM, and Naomita Yadav, JD
    |
    Dec 1, 2019

    As the financial markets flourish, there continues to be a strong focus on gift and estate planning opportunities available to hedge fund and private equity fund managers. The inherent compensation structure, including the “carried interest,” presents a unique opportunity for advisors to formulate wealth-transfer strategies for the fund manager’s future generations.

  • The Latest Proposals on Qualified Opportunity Zone Businesses

    By:
    Michelle M. Jewett, JD, Kevin Matz, JD, Esq., CPA, LLM, Jeffrey D. Uffner, JD, LLM (taxation), Richard Madris, JD, and David C. Olstein, JD
    |
    Nov 1, 2019
    The new tax incentive added by the 2017 Tax Cuts and Jobs Act—designed to promote long-term growth in economically distressed areas known as qualified opportunity zones (QOZ)—is gaining interest among businesses and business owners interested in starting or expanding businesses in QOZs or moving existing businesses to QOZs.
  • Guidance for Transferees of Partnership Interests

    By:
    Christine Piar, Managing Director of Deloitte Tax, LLP, Copyright © 2019 Deloitte Development LLC
    |
    Nov 1, 2019
    On May 7, 2019, the IRS and the U.S. Treasury department released Proposed Regulations under IRC section 1446(f) that potentially have broad application to the transfer of any partnership interest. It’s important that transferees understand in what manner and to what extent the withholding provisions could apply to them, as well as the potential consequences of noncompliance. This article focuses specifically on the effect of these regulations on the transferee of nonpublicly traded partnership interests, even when withholding does not apply.
  • Skilled Versus Custodial Care for Senior Citizens

    By:
    Daniel G. Fish
    |
    Nov 1, 2019

    Like a wheel of fortune, some senior citizens will suffer an illness and no financial risk, whereas others will suffer both an illness and a financial exposure. And many senior citizens are completely unaware of the hidden financial risk they face.

  • Taxation of Carried Interests for Senior-Level Fund Managers

    By:
    Arthur H. Kohn, Andrew L. Oringer, and Steven W. Rabitz
    |
    Oct 1, 2019
    Carried interest arrangements have been common for years in many types of private investment funds (“Funds”), including private equity, real estate, and hedge funds. Going back a few decades, the tax analysis applicable to carried interests was highly uncertain. 
  • IRS and Cryptocurrency: Where are We Now and What Next?

    By:
    Melissa Gillespie, JD, CPA, MST
    |
    Oct 1, 2019
    Over the past few years, the IRS has been slowly issuing guidance and warnings regarding the reporting and taxation of the usage and exchanging of virtual currency. Recently, on July 26, 2019, the IRS advised those who have engaged in virtual currency usage that they have begun sending educational letters to taxpayers with virtual currency transactions who either may have failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly.
  • The Case for the Continuing Relevance of the Gift Tax

    By:
    Philip A. Di Giorgio, Esq.
    |
    Oct 1, 2019

    With the passage of the Tax Cuts and Jobs Act of 2017 (the 2017 Tax Act) the lifetime exemptions from estate, gift and generation skipping transfer tax (GST) more than doubled from an already steep $5,490,000 to a cliff-hanging $11,180,000 as of January 1, 2018. As in the past, these exemption amounts continue to be adjusted for inflation leaving us with a gift tax exemption of $11,400,000 as of January 1, 2019. New York State repealed its gift tax back at the turn of the millennia, so the gift tax is strictly a federal phenomenon for New Yorkers.

  • Corporate International Tax Issues v2.0

    By:
    Cecil Nazareth, CPA, CA, MBA
    |
    Oct 1, 2019

    If you’re a CPA or a manager in a corporate finance department, it’s more important than ever to understand how the new tax law affects cross-border transactions and international tax. Since the Tax Cuts & Jobs Act (TCJA) was passed in late 2017, millions of individuals and entities have had to rethink their tax planning and tax structures completely. Going from a credit system to a territorial system is a monumental shift—you might as well be going from Earth to Mars. Everything you did in the past is no longer valid. You need to start fresh.

  • The New Moneyball

    By:
    Alan Pogroszewski, MBA, Kari Smoker, JD, and Keith Donnelly, JD, CPA
    |
    Sep 1, 2019

    In 2003, Michael Lewis’ book, Moneyball: The Art of Winning an Unfair Game, outlined the economic disadvantages the small-market Oakland A’s faced competing against the New York Yankees and other large-market teams. Lewis’ book also examined the A’s strategy of exploiting market inefficiencies in the valuation of Major League Baseball players to not only compete, but actually succeed, within the parameters of large-market and small-market teams. Such is the business of sports.

  • SoulCycle and the NYC Sales Tax on Fitness Clubs

    By:
    Brian Gordon, CPA
    |
    Sep 1, 2019

    A hearing was held before Administrative Law Judge (ALJ) Barbara J. Russo in the matter or SoulCycle, Inc. vs. the NYS Division of Taxation. The determination was issued on May 23, 2019.

  • Customized Retirement Plans Revisited—An Overlooked Benefit for Business Owners: Higher Contributions, Flexibility and Opportunities for Additional Deductions

    By:
    Kenneth A. Horowitz CLU, ChFC, RICP
    |
    Sep 1, 2019

    The current pension legislation was just given a boost to assist business owners of closely held privately entities with income tax planning strategies to help manage current income taxes as well as attract, retain, and reward talent to their businesses.

  • What’s New in New York Taxes for Closely Held and Flow-Through Entities

    By:
    Timothy P. Noonan, JD
    |
    Aug 1, 2019
    Last month I spoke at the State Society’s annual conference on tax issues for closely-held entities.  My topic, as you might guess, was all-things involving New York State taxes in this area of the law.  This article outlines what I talked about, and it covers recent updates and developments in the New York State and City tax areas and how some of these changes effect closely-held and flow-through entities.
  • Key Estate Planning Concepts That Every CPA Should Know for Their High Net Worth Clients

    By:
    Randy P. Siller, CPA*, CIMA®, and Daniel L. Daniels, JD
    |
    Aug 1, 2019

    A Credit Shelter Trust [(CST), also known as a bypass trust, estate tax shelter trust, or family trust], is a type of irrevocable trust used by married couples with large estates to take full advantage of the federal estate tax exemptions. The federal exemption for 2019 is $11,400,000 per taxpayer, so proper use of this vehicle can allow a married couple to shield up to $22,800,000 of assets from federal estate tax.

 
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.