Create an Accountable Plan to Reimburse Employees for Business Expenses
One of the changes in the Tax Cuts and Jobs Act (TCJA) was to eliminate itemized deductions for employees who incur unreimbursed expenses for company business for 2018 through 2025. To minimize the adverse effects of this TCJA, you can set up a so-called “accountable...
Employers: Consider Telemedicine and Make Sure Employees Use It
The ways medical professionals and patients interact continues to change thanks to telemedicine. Your Maine-based company may already have telemedicine available, and it’s a benefit to both you and your employees. Nearly three-quarters of employers with at least 500...
Tax Court’s Valuation of Trust’s Interest in LLC Weathers Appeal
Estate of Koons v. Commissioner (Koons II), The 11th Circuit Court of Appeals upheld a 2013 Tax Court ruling involving a revocable trust’s interest in a limited partnership. The valuation turned on the marketability discount. The 11th Circuit opinion shows the Tax...
What’s Next for State Tax Nexus?
The recent Wayfair decision by the U.S. Supreme Court has had a major impact on states that want to collect sales and use taxes. Before this case, economic “nexus” for tax purposes was established only if the seller of goods or services exhibited a “physical presence”...
New Jersey Ruling Cements Use of DLOM to Sanction Oppressing Shareholder
Parker v. Parker You may remember the Wisniewski v. Walsh case, in which the court used the marketability discount to punish bad behavior. A trial court decision in a forced buyout follows the same approach. The oppressor had created an “extraordinary circumstance...
New Law, New Limit on Deductions for Business Interest Expense
The Tax Cuts and Jobs Act (TCJA) sets a new limit on deductions for business interest expense. This is a permanent change for tax years beginning in 2018 with no end date. Will your Maine business be affected? Here’s what you need to know. How Have the Rules Changed?...
Tax-Exempt Organizations: IRS Provides Guidance on New UBTI Rule
More guidance has been issued by the IRS in regards to the Tax Cuts and Jobs Act (TCJA), signed into law in December 2017. This time the topic is the calculation of unrelated business taxable income (UBTI) for tax-exempt organizations and any separate trade or...
No ‘Circular Reasoning’ in Expert’s Lost Profits Calculation
Packgen v. Berry Plastics Corp. (Packgen II) In appealing a multimillion-dollar lost profits award, the defendants contended the expert failed to show causation, used an unjustifiably long loss period, and relied on scanty historical data to calculate damages....
Michigan Court Explains How to Handle Retained Earnings in Divorce Cases
Jensen v. Jensen, 2018 Mich. App. LEXIS 40 (Jan. 9, 2018) This Michigan divorce case involving an S corporation that was the owner’s separate property raised a number of valuation-related questions, including an issue of first impression: Are the earnings a closely...
Tax Reform: Which Changes Are Temporary vs. Permanent?
There are a number of important tax changes for individuals and businesses in the Tax Cuts and Jobs Act (TCJA). It can be hard to keep track of which changes are permanent and which are scheduled to expire at the end of 2025 without Congress extending them. Here is a...