Taxation

  • Time to Brush Up on College Tax Credits and Deductions

    By:
    RICHARD J. KORETO
    |
    Feb 11, 2014
    Ask any accountant what time it is, and you'll hear "tax season."  But ask a the parent of a college-bound high school senior, and the answer will be "financial aid season." Fortunately, the two answers blend, as colleges demand information from the tax returns—and even the returns themselves—in order to calculate financial aid. Now is the time for CPAs and clients to work together on college funding, and New York is giving timely help with a recently updated page on college tuition credits.
  • NYS Tax Dept. Finds Itself at Sea with Sales Tax

    By:
    RICHARD J. KORETO
    |
    Feb 11, 2014
    When you buy certain items or services, sales and use taxes are due—that's pretty straightforward. But what if you buy something that moves, not just when you purchase it, but continually throughout its existence. That was the question before the Office of Counsel in Advisory Opinion TSB-A-14(5)S. The petitioner is a New York company purchasing a commercial ship, and it wanted to know if the ship's time spent in New York waters determined whether its purchase was subject to sales tax. 
  • Sales Tax Guidance for 'Mad Men'

    By:
    RICHARD KORETO
    |
    Feb 4, 2014
    The New York State Department of Taxation and Finance recently stepped into the world of Don Draper, the troubled creative genius in the TV show "Mad Men," with guidance on sales, purchases and other financial issues affecting advertising agencies. In Tax Bulletin TB-ST-10, issued earlier this month, the department clarified what advertising products and services are taxable—the difference between taxable and nontaxable transactions can be subtle.
  • Cuomo budget: changes could affect CPAs and their clients

    By:
    RICHARD KORETO
    |
    Feb 4, 2014
    In his budget speech on Feb. 21, Gov. Andrew M. Cuomo pointed out that under his administration, the state has passed three budgets in a row on-time—something that hadn’t happened in more than 30 years. Now, he said, he’s going for four in a row, which New York hasn’t achieved since Nelson Rockefeller was governor and many current legislators were still learning how to walk. His speech was upbeat—in fact, he had already mapped much of his tax strategy, so there wasn’t much in the way of surprise in that area—but that doesn’t mean there won’t be any push-back as the state’s fiscal year draws to a close on March 31.
  • Residency Issues: It's Not Just about Homes

    By:
    RICHARD J. KORETO
    |
    Feb 4, 2014
    Two venerable NYSSCPA traditions are back again for another year, and the Society is looking for volunteers to help keep them going. These ventures not only burnish the NYSSCPA's image, but help others outside the accounting community as well.
  • It's Not Just about Homes

    By:
    RICHARD J. KORETO
    |
    Feb 4, 2014
    Most residency taxation issues appear to be about where a dual-household taxpayer really lives, but that's not the only possible problem. In Advisory Opinion TSB-A-13(9)I, the state addressed the question of where the income comes from, specifically when it's an insurance payout. The answer proved to be particularly complex, and especially illustrative of the state tax department's insights.
  • Hotel or Club—State Rules on What Is Being Taxed

    By:
    RICHARD J. KORETO
    |
    Jan 28, 2014
    As the old saying goes, in real estate, the three most important things are location, location and location. It can be the same thing in sales tax rulings: exactly where is the sale occurring? Novel business models can make answering that question difficult. The tax department's Office of Counsel had to address that in Advisory Opinion TSB-A-13(28)S: not only was the "where" in question, but also the "what."                     
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