Non-fungible tokens (NFTs) experienced a huge spike in investor interest in 2021 before collapsing in 2022 along with the broader financial markets. However, there continues to be excitement around NFTs. Along with this interest, there remains much ambiguity in the taxation of gain from the disposition of NFTs by investors. If NFTs are considered collectibles for tax purposes, investors may be surprised by the significant difference in capital gains tax. Until there is clarity around how NFTs are taxed at the point of investment or sale, individuals or funds invested in NFTs will remain in suspense.

After a more than 20-year debate regarding tax affecting, the U.S. Tax Court recently sided with the taxpayer in the case of Estate of Cecil v. Commissioner (Cecil) in its March 2023 ruling. Since 1999, the Tax Court, IRS, taxpayers, and appraisers have been challenged with the question of whether it is appropriate to apply an entity-level corporate income tax to an S corporation in determining value. As tax affecting is commonly accepted and performed in the appraisal practice in a variety of areas, this recent court ruling is welcome news for taxpayers and appraisers alike.

Capital gains taxes can severely erode investment performance over time. Effectively managing portfolio gains through strategic tax loss harvesting can create significant annual tax savings and increase real portfolio returns over the long term. Tax loss harvesting involves selling investments at a loss to offset taxable gains in an investor's portfolio, thus reducing annual tax liability. Capital losses that exceed capital gains each year (in excess of the $3,000 generally allowed against ordinary income) can be carried forward to offset gains realized in future years.

In the world of gift and estate tax, for the tax year 2023, a U.S. citizen and/or resident decedent currently receives a $12.92 million lifetime exemption from tax on their worldwide assets.

In recent years, the shift from brick-and-mortar retailers to the digital marketplace has spurred innovations but also some headaches for consumers and businesses alike. Now, more than ever, consumers are likely to shop online rather than go to a physical store.

Let's take a trip down memory lane. The year is 2017, President Trump is in office, and the Tax Cuts and Jobs Act (TCJA) is signed into law. Among a myriad of other tax law changes, the TCJA limits the deduction individuals may take for state and local taxes to $10,000 on their individual income tax returns (i.e., the SALT Cap). The limitation sunsets, like many of the provisions within TCJA, at the end of 2025.

The Washington State Supreme Court in Quinn v. Washington recently upheld the state's 7% excise tax on certain capital gains exceeding $250,000 in a calendar year. As a result, individual taxpayers in a state that does not impose a net income tax just became subject to capital gains excise tax and new filing requirements.

The qualified small business stock (QSBS) provision under Sec. 1202 of the Internal Revenue Code is one of the most powerful opportunities to reduce or eliminate taxable gain in a sale transaction.

On any sale of real estate, a like-kind exchange (LKE) should be considered as a way to eliminate immediate tax being imposed. An LKE is an exchange of rental real estate or real estate held for business or investment use (the relinquished property) for one or more real estate properties held for rental or for business or investment use (the replacement properties). A one-paragraph clause inserted in any sale agreement can reserve your right to do an LKE.