IRS Targeting Partnership Basis-Shifting Transaction Schemes
The Internal Revenue Service (“IRS,” or the “Service”) issued guidance on June 17, proposing new regulations and releasing a revenue ruling to challenge the use of basis-shifting transactions by complex partnerships. In making its announcement, IRS officials stated that closing this loophole could result in over $50 billion in new tax revenue for the U.S.…
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The Cost of Ambiguity: Post-Chevron Compliance Could Be Expensive
In a landmark decision issued on June 28, 2024, the Supreme Court in Loper Bright v. Raimondo and Relentless v. Department of Commerce (“Loper Bright”) overturned the Court’s 1984 opinion in Chevron, U.S.A., Inc. v. National Resources Defense Council, Inc. (“Chevron”). In a 6-3 decision, the Supreme Court held that the Chevron doctrine “cannot be…
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Proactive Protections Against CIPA Mass Arbitrations? Updated Terms of Use
Businesses operating public facing websites that employ data analytics software to track users’ website interactions must be aware of a novel use of the California Information Privacy Act (“CIPA”) that has taken the plaintiffs’ bar by storm. Specifically, class action complaints and demands have been filed in abundance under California Penal Code Section 631, California’s…
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When Florida’s Transfer Tax Applies to Real Estate Deals: Handy Scenarios
Buyers and sellers of real property anticipate some tax consequences from a real estate transaction, but typically these concerns are limited to federal income tax implications. The reality is that most states impose various taxes that could affect the cost of the entire transaction, and they are either not considered or understood. One of these…
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Summarizing Proposed Changes to Florida Rules of Civil Procedure
The Florida Supreme Court has taken steps to improve the efficiency and effectiveness of civil litigation, and it has issued two[1] separate[2] per curiam opinions introducing proposed substantial amendments to the Florida Rules of Civil Procedure (the “Rules”) in order to expedite what has proven to be a backlog of cases (recently, a judge in Miami-Dade County stated…
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Buy, Sell, Pay Taxes: SCOTUS Decision Places Its Own Premium on Buy-Sell Insurance
All U.S. closely held businesses just received a warning from the highest court in the land that they should review their succession plans (or else risk a higher tax bill for the estates of their owners). On June 6, 2024, the Supreme Court of the United States (“SCOTUS”) issued its unanimous decision on Connelly v.…
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Decisions, Decisions: Choice of Entity vs. Choice of Tax Classification
Before forming any entity, founders need to make two fundamental decisions: which entity type is best for their business operations and which tax classification is best for the owners. Although the entity type and tax classification can be changed after formation, some forethought before forming a business can reduce expenses, taxes, and headaches. Choice of…
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What Florida Sales Tax Cut Means for Florida Commercial Tenants
Broadly speaking, according to the Florida Department of Revenue, each Florida sale, amusement park admission, storage unit and rental is taxable (unless it falls under an exemption, such as nonprofits). More specifically, sales tax is imposed on the rental of real property. As stated explicitly in the Florida Statutes, any business or person that rents,…
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Title Insurance or Not, Don’t Dismiss the Value of Title Search
For those of you who question whether an owner’s policy of title insurance is a waste of money, please remember that examining title is still an essential component of due diligence investigations. Real estate investments are usually significant transactions, whether for individuals or businesses. If you are focused on protecting your financial interests, a careful…
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New Domestic Content Adder Guidance: ‘Buy American’ is Back
On May 16, 2024, the Department of the Treasury and the IRS announced the release of Notice 2024-41,[1] which clarifies the safe harbor for classification of project components created in Notice 2023-38 and provides a new safe harbor for the domestic content bonus credit percentages for clean energy tax credits offered under the Inflation Reduction…
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