Latest Articles

  • Buy-Sell Agreements: The Accountant’s Holistic Primer, Part 1

    By:
    Joshua P. Friedlander, Matthew E. Rappaport, Esq., LLM, and Daniel J. Gershman, JD
    |
    May 1, 2021
    This is the first of a two-part article on buy-sell agreements. The second part will be featured in the June TaxStringer.

    Most accountants are familiar with the concept of Buy-Sell Agreements, and after practicing long enough, most accountants are involved in planning several Buy-Sell Agreements and administering at least a few of them. Buy-Sell Agreements create the mechanism for an entity and its owners to experience an orderly transition of equity ownership and governance upon a wide range of events that might include death, disability, retirement, voluntary withdrawal, or an impasse among the owners.
  • How to Determine the Section 199A Deduction for Your Client

    By:
    Cameron Williams, CPA
    |
    May 1, 2021

    The qualified business income (QBI) deduction under Internal Revenue Code (IRC) Section 199A introduces challenges and benefits for owners of pass-through businesses. Although the deduction can provide a significant tax opportunity, navigating the many rules and limitations associated with it can be complicated and time consuming. Here, learn key applications and requirements when determining the QBI deduction for taxpayers who receive QBI from multiple sources, such as Schedule K-1s and rental properties.

  • FDII Qualification and Substantiation Requirements in the Final 250 Regulations

    By:
    Fernando Lopez, JD, MBA
    |
    May 1, 2021

    Enacted by the Tax Cuts and Jobs Act of 2017, IRC Section 250 (Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI)) provides a favorable 50% U.S. tax deduction to shareholders of controlled foreign corporations (CFCs) on their GILTI deemed dividends.  In addition, Section 250 provides domestic C corporations a favorable 37.5% deduction on Foreign Derived Intangible Income that is derived from serving foreign markets via sales, services and licensing. This article primarily addresses issues related to the FDII deduction.

  • The IRS Has Announced Open Season Against Those Covered By FIRPTA!

    By:
    Alicea Castellanos, CPA
    |
    May 1, 2021
    If you were raised on American TV and are now approaching middle age, you may recall watching the Warner Brothers cartoons featuring characters like Bugs Bunny, Daffy Duck, and Elmer J. Fudd. An oft-featured plot line involved Fudd hunting down rabbits or ducks. He would speak to the audience while on the hunt stating that everyone should be quiet because he was hunting. Bugs and Daffy would argue over the appropriate hunting season in front of Fudd in order to save their respective lives. 
  • Impact of CARES Act on Partners, Shareholders, and Beneficiaries

    By:
    Dean L. Surkin, JD, LLM
    |
    Apr 1, 2021
    To maximize the economic stimulus afforded by the Coronavirus Aid, Relief and Economic Security (CARES) Act, many of its tax provisions are retroactive. The economic impact of the pandemic on many businesses meant that their income – and their tax bills – would decline sharply from 2019 to 2020. Having a tax cut take effect for a year in which the tax bill is lower has much less effect than when the cut comes in a year with a greater tax bill.
  • Tax Issues in Divorce: Before and After Tax Reform Part 3

    By:
    Justin T. Miller, J.D., LL.M., TEP, AEP®, CFP®
    |
    Apr 1, 2021
    A qualified retirement plan typically is set up by employers as an employee benefit. These plans are subject to federal tax and labor laws—that is, both the Code and the Employee Retirement Income Security Act of 1974 (ERISA)—and are overseen by the Service, the Pension Benefit Guaranty Corporation, and the Department of Labor.

  • Corporate Veils, the Sequel: Jeremiah and the Transformation of Walls

    By:
    Alicea Castellanos, CPA
    |
    Apr 1, 2021
    Whether you view the Bible as literature or religious scripture, one cannot deny that there are many lessons and morals to be derived from the stories contained therein. There is an episode in the Old Testament related to the Biblical prophet Jeremiah, who knew by prophetic countenance that the holy city of Jerusalem would be imminently destroyed.
  • Purchasing Services from Foreign Persons

    By:
    Yelena Y. Antipova, Esq.
    |
    Apr 1, 2021

    As technological advances have been evolving with a rapid rate, people have become more mobile. The pandemic of 2020 has only accelerated a further movement towards e-commerce. Companies can source services from anywhere in the world; people can provide services from anywhere in the world.

  • A New Environment for Estate Planning Takes Shape in 2021

    By:
    Kevin Matz, Esq., CPA, LLM (Taxation)
    |
    Mar 1, 2021
    A new environment is starting to take shape in 2021, and with it comes additional considerations to factor into one’s estate planning. As a result of the success of Georgia Senate candidates Raphael Warnock and Jon Ossoff in their respective Senate races on January 5, the makeup of the new Senate is 50 representatives per party, with Democratic Vice President Kamala Harris holding a tiebreaking vote. 
  • The Many Ways to Source Receipts from Asset Management Services in New York and None Are Clear

    By:
    Barry Halpern, CPA and Katherine Krafchuk, CPA
    |
    Mar 1, 2021
    With the continued shift to economic nexus and market-based sourcing, many asset management service providers find themselves doing business in more states. The continued shift to single sales factor weighting places a profound focus on the receipts factor and its sourcing for both taxpayers and auditors. This is especially true in New York State and New York City (collectively, “New York”), as New York sourcing rules are complex and can be cumbersome.

Tax Quote
  

Paying tax should be framed as a glorious civic duty worthy of gratitude - not a punishment for making money

 – Alain de Botton

*Outside the Box is a new addition to the TaxStringer featuring important articles on financial and investment management topics by top authors who have expertise both inside and outside the realm of taxation.

 

 

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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.