As I previously reported in an article published earlier this month, the IRS has repeatedly taken the position that businesses cannot deduct otherwise deductible expenses (such as payroll or rent) if the business used...more
Back in May, I reported on the IRS’s issuance of Notice 2020-32, in which the IRS answered with a resounding "no" the question of whether businesses that used Paycheck Protection Program (“PPP”) loan proceeds to pay...more
12/2/2020
/ CARES Act ,
Coronavirus/COVID-19 ,
Federal Loans ,
IRS ,
Paycheck Protection Program (PPP) ,
Payroll Taxes ,
SBA ,
SBA Lending Programs ,
Small Business ,
Tax Deductions ,
Tax Relief
Monday, the U.S. Department of the Treasury and Internal Revenue Service (IRS) issued a press release and related notice regarding proposed regulations which clarify that the $10,000 cap on state and local tax (SALT)...more
One of the key tax benefits for investors and owners of real estate such a senior living facilities is depreciation. The 2017 Tax Cuts and Jobs Act expanded on this benefit, allowing for 100% bonus depreciation for assets...more
The Paycheck Protection Program (“PPP”) included in the CARES Act allows businesses with 500 or fewer employees to receive loans to pay payroll costs, rent and certain other expenses....more
5/4/2020
/ CARES Act ,
Coronavirus/COVID-19 ,
Federal Loans ,
Financial Stimulus ,
IRS ,
Paycheck Protection Program (PPP) ,
Popular ,
Relief Measures ,
SBA ,
SBA Lending Programs ,
Small Business ,
Tax Deductions
The 2017 Tax Cuts and Jobs Act introduced a new Section 163(j) limitation on taxpayers deducting business interest expense (our prior discussion of this tax law change can be found). ...more
I recently wrote about the Tax Court decision in Northern California Small Business Assistants Inc. v. Commissioner, which addressed whether Section 280E’s denial of tax deductions to marijuana businesses violates the Eighth...more
11/4/2019
/ Constitutional Challenges ,
Controlled Substances ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRC Section 280E ,
IRS ,
Marijuana ,
Marijuana Related Businesses ,
Tax Court ,
Tax Deductions ,
Tax Liability ,
Tax Returns
As more and more states are allowing legal use of marijuana, medical marijuana businesses are faced with large tax bills because of marijuana’s continued classification as a Schedule I controlled substance under federal law. ...more
10/29/2019
/ Business Expenses ,
Business Taxes ,
Dispensaries ,
Dissenting Opinions ,
Eighth Amendment ,
Excessive Fines Clause ,
IRC Section 280E ,
IRS ,
Marijuana ,
Marijuana Related Businesses ,
Medical Marijuana ,
Sixteenth Amendment ,
Tax Court ,
Tax Deductions ,
Tax Liability ,
Tax Penalties ,
Tax Planning
Section 199A introduced a 20% deduction for qualified business income. To qualify for the deduction, income must be from a trade or business. Whether rental activity rises to the level of a trade or business can often be a...more
Section 199A introduced a new 20% deduction for qualified business income. To qualify for the deduction, income must be from a trade or business. Many senior living communities hold their real property in a separate entity,...more
Do you have a tech business that you operate as a pass-through entity? If so, Section 199A of the recent tax reform legislation may apply to you or your business. This provision introduces a 20% deduction for qualified...more
Section 199A introduced a new 20% deduction for qualified business income. To qualify for the deduction, income must be from a trade or business. ...more
The recent Tax Court decision, Alterman v. Commissioner, struck yet another tax blow against the growing medical marijuana industry.
...more
6/18/2018
/ Business Expenses ,
Business Taxes ,
Dispensaries ,
IRS ,
Marijuana ,
Marijuana Related Businesses ,
Medical Marijuana ,
Tax Court ,
Tax Deductions ,
Tax Liability ,
Tax Penalties ,
Tax Planning
As I recently discussed on this blog, the recent tax reform has brought new tax rates and deductions, which reopen the question whether your choice of entity is still right under these new rules. ...more
After many years of being the target of Congress and the IRS, the Tax Cut and Jobs Act finally succeeded in limiting the beneficial tax treatment of carried interests, at least for some taxpayers. This change will be of...more
3/2/2018
/ Business Taxes ,
Carried Interest Tax Rates ,
Corporate Taxes ,
Future Tax Treatment ,
Income Taxes ,
Investment Funds ,
New Legislation ,
Real Estate Development ,
Real Estate Market ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
Tax Rates ,
Tax Reform ,
Trump Administration
The Tax Cut and Jobs Act made several important changes to the net operating loss (“NOL”) rules. The following is a brief discussion of these changes. Businesses that generate significant NOLs, such as real estate companies...more
The Tax Cut and Jobs Act introduced a new rule limiting a businesses ability to deduct interest expense, which can have a significant impact in the senior living area as facilities often are acquired or built using debt....more
Last year’s Tax Cut and Jobs Act (the “Act”) introduced many tax changes on the individual return front. One rule that has seen important changes is the home interest deduction. ...more
Last month, President Trump signed into law the much publicized Tax Cut and Jobs Act. In part of our ongoing series discussing the changes made by the Act, the following answers five common questions regarding the new...more
2/2/2018
/ Corporate Taxes ,
Income Taxes ,
Net Operating Losses ,
New Legislation ,
Pass-Through Entities ,
Passive Activity ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
Last month, President Trump signed into law the much publicized Tax Cut and Jobs Act. In part of our ongoing series discussing the changes made by the Act, the following answers six common questions regarding the new Section...more
Last month, President Trump signed into law the much publicized Tax Cut and Jobs Act. In part of our ongoing series discussing the changes made by the Act, the following discusses key changes made to the expensing and...more
1/19/2018
/ Bonus Depreciation ,
Business Taxes ,
Compensation & Benefits ,
Corporate Taxes ,
Income Taxes ,
MACRS ,
New Legislation ,
Section 179 Property ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
Tax Rates ,
Tax Reform ,
Trump Administration
Last month, President Trump signed into law the much publicized tax reform legislation, Public Law 115-97. One of the new provisions is Section 199A, which introduces a deduction for qualified business income. Here are the...more
President Trump signed the tax reform bill into law today....more
12/22/2017
/ Alternative Minimum Tax ,
Compensation & Benefits ,
Corporate Taxes ,
Estate Tax ,
Income Taxes ,
International Tax Issues ,
Pass-Through Entities ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Tax-Exempt Bonds ,
Trump Administration
Congress has passed the Tax Cuts and Jobs Act, and President Trump is expected to sign it almost immediately. ...more
12/21/2017
/ Alternative Minimum Tax ,
Business Taxes ,
Corporate Taxes ,
Estate Tax ,
Income Taxes ,
International Tax Issues ,
Legislative Agendas ,
Pass-Through Entities ,
Proposed Legislation ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Tax-Exempt Bonds ,
Trump Administration
This morning, Congress passed the Republican’s tax reform bill, the Tax Cuts and Jobs Act (the “Act”). President Trump is expected to sign the Act into law almost immediately. The Act will drastically change the Internal...more
12/20/2017
/ Alternative Minimum Tax ,
Business Taxes ,
Corporate Taxes ,
Estate Tax ,
Income Taxes ,
International Tax Issues ,
Legislative Agendas ,
Pass-Through Entities ,
Proposed Legislation ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration