Valuing Closely Held Businesses: The Reality of Economic Control?
A Time for Planning? It’s late August – again. As usual, many business owners are looking forward to having all of their employees back at work and ready to make the final push for a successful...
View ArticleGifting Business Interests: Will the Parent’s Tax Treatment Be Visited Upon...
The Tax Gene? King of Swamp Castle: One day, lad, all this will be yours. Prince Herbert: What, the curtains? King: No, not the curtains, lad. I’m talking about all of my business and investment...
View ArticleSelling S Corporation Stock – Are You Sure?
Still a Valid S Corporation? Much has been written regarding the limitations of the S corporation, especially the requirement that it have only one class of stock, and the prohibition against its...
View ArticleStatutory Residence in NY: The “Permanent Place of Abode” Test Is in Need of...
Moving To Florida? A few days ago, one of the daily tax services reported that the billionaire investor and businessman, Carl Icahn, was planning to move his home from New York City to Florida,...
View ArticlePE Fund, Foreign Investor, No Blocker, & Partnership Rollover – Hiccup?
Most transactions have their share of hiccups. Some cases are more serious than others. Generally speaking, they originate with the seller. For example, due diligence turns up some disturbing...
View ArticleTaxable M&A and the Unwanted Asset
Under One Roof I sometimes wonder at the number of corporations that own real property. It is often the case that the property is the corporation’s principal asset, which it leases to one or more...
View ArticleValuation, Hindsight, and Taxes
The Benefit of Knowing Monday morning quarterbacking – the connotations are anything but positive. Life is full of instances in which someone, in possession of all the factors that informed – or that...
View ArticleStatutory Resident? Selling Your New York Business? Welcome to Double Taxation?
General Principles Many business owners who reside in New York, and whose business is headquartered in the state, pay income taxes not only to New York, but to other jurisdictions as well. For example,...
View ArticleTax-Free Spin-Off? That May Depend . . . On Post-Spin-Off Events
The Break-Up After a tense period of disagreement and stalemate, the threat of litigation,[i] the ensuing economic and emotional stress, Client and their former fellow-shareholder (“Departing”) – and...
View ArticleSpin-Offs, Mergers, and . . . Gifts? Oh My
Mostly Divisions Over the last several months, many of the projects on which I have been working have involved the division of a corporation or of a partnership. Yes, there have been purchases and...
View ArticleI Own the Business, The Business Owns the Assets, I Own the Assets, Right?
Personal Use of Business Assets “But it’s my business. I own it.” How many times have you heard this response from the owners of a business entity after you’ve advised them that they should not treat...
View ArticleLou Vlahos Quoted on President Trump’s Plan to Declare Residency in Florida
Four media outlets have quoted Tax Law for the Closely Held Business blog author Lou Vlahos on the topic of whether New York resident President Donald Trump will be successful in changing his residency...
View ArticleWhen a New York Exempt Resident Trust Meets the Sale of a Business
Imagine, if you will, the owner of a closely held business. Although the business has done well, the owner believes they can take it to the proverbial “next level” by dedicating another five years of...
View ArticleS Corp Revocation Redux
Right about now, many of you are probably saying “Not again,” or “not another,” in reaction to the title of this post. I suspect that, for many of you, this is the umpteenth article you’ve encountered...
View ArticleBusiness Donates Partnership Interest to Charity, Partnership Sells Real...
“Charitable Behavior” Our society is fortunate that so many business owners are charitably inclined. In many cases, their charitable activities are motivated purely by a desire to help others, whether...
View ArticleBusiness Donates Partnership Interest to Charity, Partnership Sells Real...
“Charitable Behavior” Our society is fortunate that so many business owners are charitably inclined. In many cases, their charitable activities are motivated purely by a desire to help others, whether...
View ArticleA Tale of Two Estate Taxes: Federal & New York
As we approach the end of 2019, I am reminded that this was supposed to have been the year in which New York’s estate tax exclusion amount was to have become the same as the federal estate tax...
View ArticleThe Death of a Partner: Out With the Old Taxable Year, In With the New?
I once heard it said that death keeps no calendar.[i] That may be, but it can sure unsettle a partnership’s advisers when the decedent is one of the partners and their estate chooses to use a fiscal...
View ArticleLou Vlahos Quoted in an LIBN Article on Shareholder Spin-offs
Tax Law for the Closely Held Business blog author Lou Vlahos was extensively quoted in a Long Island Business News article entitled “Spin Doctors.” The article was published in the December 6-12, 2019,...
View ArticleSale of a Contract: Ordinary v. Capital – Round Two
A couple of years ago, this blog carried an article that briefly considered whether the gain realized by a taxpayer on the sale of a contract should be treated as ordinary income or capital gain for...
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