Partnership interests (and interests in LLCs taxed as partnerships) are capital assets. Gain from the sale of capital assets is capital gain, which for individuals is taxed at preferential rates. Therefore, gain from the sale of a partnership interest must be taxed to individuals at the preferential rates applicable to capital gain. Although seemingly straightforward, there are exceptions. A partnership interest is a capital asset, except when it is not.

The article "Tax Losses Related to the Russia-Ukraine War” is featured on LexisNexis Practical Guidance. Authored by Andersen Managing Directors Ellen MacNeil, Mary Duffy and Sid Luckenbach along with Senior Manager Deanne Morton, the article details how a business can determine if a casualty loss sustained as a result of the Russia-Ukraine War qualifies for a deduction on its U.S. federal tax return.

Taxpayers with audited financial statements (AFS) have new opportunities under the final Sec. 451 regulations to defer recognizing income under the Sec. 451(b) book acceleration rule (see this Tax Release for a summary of the final Sec. 451 regulations). Those taxpayers with unbilled revenue or contract assets on the GAAP balance sheet may be able to defer such revenue for tax purposes under the new guidance.

In some families, younger generations start private equity funds and raise capital from both family and outside investors.

In trust and estate tax planning, a well understood and often used tax saving transaction is the partial interest gift discount when a non-controlling partial (or fractional) ownership interest is gifted between family members. In this case, once the fair market value of 100% of the subject real estate portfolio is established, a discount study is performed for the partial interest of the ownership amount that is transferred via a gift.

As we enter the second quarter of 2022, businesses and their owners face a state of change, disruption and uncertainty on both the domestic and international fronts. Despite the pending developments that have the potential to impact tax planning opportunities and challenges in 2022, there are some areas where tax planning needs are clear and where taxpayers must give their immediate attention. To that end, below are several tax-related moves that business should consider in 2022 including amending returns to capture tax benefits from the pandemic, leveraging deductions that may soon expire, and planning around expired tax benefits and current legislative uncertainty.

The Texas Supreme Court ruled in favor of Sirius XM Radio, finding that the service it performs for Texas subscribers occurs primarily outside the state for purposes of calculating the company's liability for the Texas Franchise Tax.

Managing business personal property taxes can be a daunting task for companies of all sizes. It often requires tracking hundreds or thousands of assets, managing multiple deadlines and preparing tax returns. After all of that, a business must decide whether to pay a tax assessment or protest it.

Online retailers experienced a seismic shift regarding their responsibility to collect and remit sales and use taxes as a result of the U.S. Supreme Court's ruling in Wayfair v. South Dakota (Wayfair) in 2018. While the case directly addresses sales and use tax collection requirements, it has since created ambiguity in how it should be applied to other types of state levies, such as gross receipts tax.