If you want a charitable deduction for a gift of property to a charity, you must avoid imposing restrictions upon the charitable donee
IRC §170(a) allows a deduction for any charitable contribution made during the taxable year. IRC §170(c) defines a charitable contribution to include a contribution or a gift to or for the use of qualified entities. A contribution is not deductible unless it constitutes a completed… Read More
The Soda Tax in Court
This guest post was authored by Brandon Matsnev, a summer associate with Montgomery McCracken. The Philadelphia Beverage Tax, commonly referred to as the “Soda Tax,” has unleashed vigorous political debate. The legislation, implemented January 1, 2017, taxes soda distributors 1.5 cents per ounce of soda sold… Read More
Checklist of Tax and Non-Tax Considerations for Someone on His/Her Deathbed
I am often asked by family members of a loved one who is on his/her death bed what steps should be taken from an estate planning, tax and non-tax perspective that will make the individual more comfortable, save taxes, preserve assets and make settling the… Read More
Branch Transactions – New Aggregation Election
Do you have a business that has a branch in a foreign country? If so, new regulations will dictate how you determine your taxable income. Many businesses have a branch in a foreign country. This may include conducting business in the foreign country through an… Read More
Final Section 987 Regulations for “Qualified Business Units”
In December of 2016, the Treasury issued final and temporary functional currency regulations that apply to certain types of so-called “qualified business units”. A qualified business unit or “QBU” includes a corporation. In addition, activities of a corporation or an individual qualify as a QBU… Read More
New Disguised Sale Rules
One way of cashing out business assets involves contributing the business assets to an entity classified for tax purposes as a partnership in exchange for a minority interest in the partnership, where the partnership would borrow money on a full recourse basis and distribute the… Read More
Treasury Department Plans to Close Valuation Loopholes for Closely-held Businesses
On August 2nd, the Treasury issued proposed regulations that seek to eliminate the use of several strategies to reduce estate, gift, and generation-skipping tax (“GST”). Specifically, if the new rules are finalized, taxpayers will generally no longer be able to take certain types of voting… Read More
Professional Corporation that does not elect subchapter S – be careful of using yearend bonuses to zero out taxable income
Some professional entities are C corporations. The case of Brinks Gilson & Lione, a professional corporation v. Commissioner, TC Memo 2016-20, points out the danger in operating a professional entity as a C corporation. In Brinks, the professional corporation had a substantial number of attorneys… Read More
It’s Tax Time – Wake Up and Think About Taxes!
Sometimes it is better tax wise to rehab space than build new. The Protecting Americans from Tax Hike Act of 2015 or “PATH Act” provided several gifts to the real estate industry that favors rehabbing older buildings. The PATH Act retroactively restored and made permanent… Read More