Show Original

Archive for the ‘Tax Planning’ Category

Built-In Gain Tax Not Triggered By S Corporation Conversion of LLC Interest

Published: October 18th, 2017

By: Stephen R. Looney

An S corporation that was previously a C corporation is subject to the built-in gains tax under Section 1374 if appreciated assets held by the corporation (measured from the beginning of the S corporation’s first taxable year) are disposed of during the “recognition period.”  The built-in gains tax is imposed at the corporate, rather than […]

Bluegrass and Sunshine: Sales and Use Taxation of the Equine Industry in Kentucky and Florida

Published: August 30th, 2017

By: Mark E. Holcomb

By Erica L. Horn and Mark E. Holcomb[1] The equine industry has a long and esteemed history in the United States, with the first Thoroughbred races dating back to the early days of our nation. Thousands of people still gather each year at the Kentucky Derby, the Preakness Stakes, the Belmont Stakes and the Breeders’ […]

Florida’s Water Crises: Can We Afford The Solutions? (Part III)

Published: July 10th, 2017

By: Michael D. Minton Brad Gould Dana M. Apfelbaum

As we’ve discussed in Part I and Part II, the renewed focus on water projects due to discharges from Lake Okeechobee and the occurrences of blue/green algae is accompanied by a renewed effort to involve private landowners in the development of water attenuation projects. We’ve now explored the exceptions to the general rule that government […]

Widow Allowed to Expense Previously Expensed Farming Inputs

Published: January 17th, 2017

By: Brad Gould

In the case of Estate of Backemeyer v. Commissioner, 147 TC 17 (2016), the Tax Court held that the widow of a Nebraska farmer was entitled to expense farming inputs she inherited from her husband, who had expensed the same inputs during his life. Mr. Backemeyer, a corn and soybean farmer, purchased farming inputs consisting of seed, […]

Florida’s Water Crises: Can We Afford The Solutions? (Part II)

Published: November 15th, 2016

By: Michael D. Minton Brad Gould Dana M. Apfelbaum

With the renewed focus on water projects due to discharges from Lake Okeechobee and a recent surge in blue/green algae, there is also a renewed effort to involve private interests in the development of these projects. This series of articles addresses exceptions to the general rule that government payments received by private landowners as a […]

Florida’s Water Crises: Can We Afford The Solutions? (Part I)

Published: August 24th, 2016

By: Michael D. Minton Brad Gould Dana M. Apfelbaum

If you want to get the attention of your elected officials in Florida, make sure there is an event that may adversely affect the tourism industry! The State of Florida receives (on average) between 50 – 60 inches of rain each year. Currently, our water management system is designed primarily as a drainage system with […]

Bipartisan Budget Act of 2015

Published: June 29th, 2016

By: Charles H. Egerton

Charlie Egerton, shareholder in Dean Mead’s Tax Department, discusses the revolutionary audit rules that are a part of the Bipartisan Budget Act of 2015 and how they affect entities treated as partnerships for tax purposes. Bipartisan Budget Act of 2015

Compensation to Law Firm Shareholder-Employees Disallowed by Tax Court

Published: March 17th, 2016

By: Stephen R. Looney

In Brinks,[1] the Tax Court once again applied the independent investor test to recharacterize compensation paid by a professional corporation, a law firm, to its shareholder-employees as nondeductible dividend distributions, and held the corporation liable for accuracy-related penalties for mischaracterizing the dividends as deductible compensation. This case should serve as a warning for many mid-size […]