Corporate attorneys usually think of trusts as estate planning tools: they are the vehicles through which the owner of a business may pass along to their family a beneficial interest in the business without actually giving them direct ownership in the business. The owner will transfer an equity (often non-voting) interest in the business by
Capital Gain or Ordinary Income? Establishing Intent
Last week’s post considered the risk assumed by a taxpayer that ignores the plain meaning of a Code provision (the definition of “capital asset”) in favor of a more “rational” – favorable? – interpretation of that provision.
This week’s post considers the “plain meaning” of the same section of the Code: the definition of the
“Interpreting” the Code’s Plain Text
What Does It Mean?
The Tax Cuts and Jobs Act[1] has now been in effect for fifty days. During this relatively brief period, many tax professionals have pored over the statutory language, as well as the Joint Explanatory Statement issued by Congress, and, in the process, have found provisions that are in need of
When is a Shareholder’s “Loan” to An S corporation Really a Loan?
Passing Through Losses
There is a problem that will sometimes plague the shareholders of an S corp that is going through challenging financial times. Whether because of a downturn in the general economy or in its industry, whether because of stiff competition or poor planning, the S corp is suffering operating losses. As if this
Permanent Place of Abode, Proximity to One’s Business, and N.Y. Residence
“Life” Goes On
Over the last month or so, most of the nation’s tax practitioners have been devoting an extraordinary amount of time to analyzing the recently enacted changes to the Code, to understanding the resulting consequences, and to determining how they may advise their clients.
Based upon the volume of material that these tax
U.S. Taxation of Foreign Income After Tax Reform
We’ve all heard about the profits that publicly-held U.S. corporations have generated overseas, and how those profits have, until now, escaped U.S. income taxation by virtue of not having been repatriated to the U.S.
It should be noted, however, that many closely-held U.S. corporations are also actively engaged in business overseas, and they, too, have
Will Tax “Reform” Affect Domestic M&A?
Perhaps the single most important day in the life of any closely held business is the day on which it is sold. The occasion will often mark the culmination of years of effort on the part of its owners.
The business may have succeeded to the point that its competitors seek to acquire it in
The Real Property Business and the Tax Cuts & Jobs Act
Introduction
The Tax Cuts and Jobs Act of 2017[1] went into effect only two weeks ago. Many of its provisions represent significant changes to the Code, and it will take most of us several months to fully digest them,[2] to appreciate their practical consequences, and to understand how they may best be utilized
The Federal Estate Tax Lives On, But “Where, O death, is your sting?” (*)
When the Tax Cuts and Jobs Act[1] was introduced on November 2, 2017, perhaps the single most important issue on the minds of many closely held business owners was the future of the estate tax: was it going to be repealed as had been promised? A closely related question – and perhaps of equal
Some of the TC & JA’s Corporate Tax Changes
Our last three posts focused on those provisions of the Tax Cuts and Jobs Act[1] that apply specifically to pass-through entities, including partnerships and S corporations.
The 2017 Tax Act: Other “Pass-Through” Tax Provisions – Part II
The 2017 Tax Act: Other “Pass-Through” Tax Provisions – Part I