The Tax Cuts and Jobs Act of 2017 created an important economic development tool, qualified opportunity zones (QOZs), to incentivize private investment in businesses, projects and commercial property in economically distressed communities. Governors from all states, including Minnesota, have now designated areas as QOZs which are eligible for tax-advantages. IRC Sections 1400Z-1 and 1400Z-2 and the related regulations and guidance provide that real estate and other investors can defer current capital gains, increase basis in…

More than 20 attorneys from the Tax Practice and Private Wealth Services Practice of global law firm Greenberg Traurig, LLP were included in the 2021 edition of Best Lawyers in America. In addition, seven attorneys from the firm’s Tax and Private Wealth Services practices are recognized in the inaugural edition of Best Lawyers: Ones to Watch. This year, more than 400 Greenberg Traurig attorneys from across the firm’s U.S. offices are listed in the publication,…

On July 31, 2020, the Department of Treasury and IRS issued proposed regulations that provide guidance to the “carried interest” rules under Section 1061 of the Internal Revenue Code. Long-term capital gains derived by individuals are subject to a preferential 20% US federal income tax rate (plus 3.8% “net investment income” tax after certain income thresholds are met).  On the other hand, individuals are subject to US federal income tax on short-term capital gains at…

In November 2020, California voters will decide whether to fundamentally change how real property is taxed in the state. Proposition 15, if approved, would establish a “split roll” property tax regime, whereby commercial and industrial properties would be taxed differently than residential properties. It would amend the California Constitution to require commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their current market value, rather than purchase price subject only…

On June 26, 2020, an administrative law judge in the New York City Tax Appeals Tribunal In the Matter of Mars Holdings, Inc. [TAT(H) 16-14 (GC)] held that the city could impose its corporate tax on the gain on the sale of a partnership interest in a partnership that did business in New York City, even though the taxpayer’s commercial domicile was outside New York. Read the full GT Alert, “NYC Imposes Tax on …

On August 10, 2020, the San Francisco Superior Court granted the State of California a preliminary injunction requiring Uber and Lyft to reclassify their drivers as employees.  People of the State of California v. Uber Technologies, Inc. concerns the application of Assembly Bill No. 5 (A.B. 5), which targeted the gig work economy.  Uber and Lyft have disputed the application of the legislation to their businesses, so the California Attorney General Xavier Becerra and the…

In July 2019 the IRS identified post offshore voluntary disclosure program (OVDP) compliance as a campaign. The purpose of the campaign is to pursue those OVDP participants who fail to remain compliant with their foreign income and asset reporting requirements. The campaign said that the IRS would address this tax noncompliance through soft letters and examinations. OVDP participants have recently received such soft letters. Continue reading the full GT Alert, “Your Offshore Voluntary Disclosure …