Insurance: What is it? How does it work?
Assume that Acme Co[i] is paying premiums for commercial insurance[ii] coverage to protect itself from economic losses that may arise out of various events. These premiums are deductible in determining Acme’s taxable income; they represent an ordinary and necessary expense of conducting Acme’s business.[iii]
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Corporate Tax Hike on the Horizon: Using Reasonable Compensation to Withdraw Value
Corporate Rate Increase?
We begin this week with the Senate having passed the President’s $1.9 trillion coronavirus relief and economic stimulus plan (the “American Rescue Plan”[i]) following a marathon session during which Senate Democrats tried to address the concerns of centrists within their own party,[ii] but without alienating more progressive members of…
Leaving New York? Plan for the Taxation of Deferred Compensation
Into the Fire
Let’s play a game of “Guess Who?”[i]
Here are the clues:
- the legislature has called for an investigation into his mishandling of the crisis brought on by the pandemic,[ii]
- he has stated that he doesn’t trust the advice of health experts,[iii]
- members of the opposition party, as well as
…
The Biden Presidency: How Will Cannabis Business Be Taxed?
Wither the Weed?
It has been one month since Mr. Biden’s inauguration as President of the United States. Among the many questions being asked of President Biden is whether he will seek the decriminalization[i] of cannabis. During the campaign, the Democratic Party’s official position (part of the party’s platform) regarding cannabis was as follows:…
Statutory Residence for the “Former” New Yorker
“Tax the Rich” in N.Y.
Over the last few months, we’ve considered on several occasions how Albany may respond to the fiscal crisis arising from the pandemic and the ensuing reduction in economic activity. These circumstances have placed an incredible strain upon the State’s various social safety nets,[i] as many individuals find themselves in…
Taxes In New York’s FY 2022 Budget
Budget Time in New York
Last week, we reviewed some of the tax measures discussed by Governor Cuomo in his report on the State of the State, and how they may affect New York businesses and their owners.[i] Today, we’ll take a look at just a few of the “revenue provisions” included in Mr.…
New York: Deficits, Taxes and 2021
Only 347 Days to Go
What a year it has already been, and we are just beginning the third full week of 2021. The Democrats swept Georgia, thereby giving that Party a majority in the U.S. Senate and ostensible control over Congress. The U.S. began vaccinating high risk health care workers against the COVID-19 virus.…
Can a Partnership’s Payment to a Partner for Services Not Be Treated as Such for Purposes of Sec. 199A?
Memory Lane
You may recall how clear it became, as the bill that would become the Tax Cuts and Jobs Act (“TCJA”)[i] moved through Congress in late 2017, that C corporations were about to realize a number of tax benefits, the most significant being the introduction of a flat federal corporate income tax rate…
The Federal Estate Tax in 2021: What Might We Expect? What Can We Do?
Happy New Year?
Ask anyone outside the United States what comes to mind when they think about an American New Year’s celebration, and the odds are pretty good they will mention the ball drop in New York City’s Times Square.
That’s all well and good, but let me ask you, does the Empire State have…
Relief for Late Partnership Filings
Oops?
Are you a member of a partnership or of a limited liability company that is treated as a partnership for tax purposes (a “partnership”)? Did your partnership file its 2016 tax return late this year? How about K-1s? Were these forms issued late to its partners? Then this post may be for you.
Late…