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
Tax Law for the Closely Held Business
Legal Updates & Commentary for Tax & Estate Planning
The blog "Tax Law for the Closely Held Business," published by Farrell Fritz, P.C., focuses on tax issues specifically affecting closely held businesses. It covers topics such as corporate tax strategies, tax implications of business structures, deferred compensation, estate and trust taxation, and the tax treatment of related-party transactions. The blog also addresses regulatory developments, IRS rulings, and legislative changes impacting business taxation. Additionally, it discusses planning techniques to optimize tax outcomes for business owners and shareholders, including considerations for insurance arrangements, compensation, and business succession.
Blog Authors
Latest from Tax Law for the Closely Held Business
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…
Leaving New York? Plan for the Taxation of Deferred Compensation
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,…
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…
Budget Resolutions, Reconciliation and Tax Increases: Is it Time for the Weight-Challenged Individual to Sing?
Procedural Mumbo Jumbo? [i]
Remember your civics class in elementary school? * * * . What’s that? Not really. * * *. Doodling, you say? * * * . The principal’s office? OK, what about high school social studies? *…
Turning a Hobby into a Business And into Tax Trouble
“Find a Hobby”
Over the years, many colleagues, friends and family who have observed my work habits have suggested, with the best of intentions, that I find a “hobby,” by which they mean something other than a work-related activity (broadly…
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,…
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…
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…