The United States (U.S.), like many other countries, places burdensome tax implications on certain individuals effectively departing the country's worldwide income tax net. In the U.S., a tax expatriation occurs when an individual's U.S. citizenship or long-term permanent residence is terminated if certain requirements are met. Long-term permanent residence, in general, is met if an individual has held a green card in any part of at least eight of the fifteen tax years ending in the year of termination via filing Form I-407, Record of Abandonment of Lawful Permanent Resident Status. Expatriation can also occur for a green card holder who files Form 1040-NR, U.S. Nonresident Alien Income Tax Return, based on residence in a foreign country under the terms of a U.S. income tax treaty.

Property tax is one of the mainstays of municipal financing and is often considered an unavoidable cost of owning real estate.

The Tax Cuts and Jobs Act of 2017 (TCJA) included a change to the treatment of research and experimental (R&E) expenses under Sec. 174 of the Internal Revenue Code. Beginning January 1, 2022, the TCJA requires taxpayers to capitalize previously deductible R&E expenses. The change provides a ratable amortization period of five years for R&E conducted in the U.S. and 15 years for non-U.S. activity beginning at the midpoint of the tax year incurred. This dramatic shift in the tax treatment of R&E expenses has important consequences for the artificial intelligence (AI) industry.

Philanthropy is often a rewarding way for wealthy individuals and entrepreneurial families to make a difference in the world and leave a legacy. Many individuals have established private foundations under Sec. 501(c)(3) to conduct these activities. However, legislative changes in recent years have made Sec. 501(c)(4) social welfare organizations (501(c)(4) organizations) a potentially more attractive option to supplement some individuals‚ existing philanthropic efforts.

Throughout 2022, as the seemingly endless rush of headlines indicated, the Federal Reserve raised the Federal Funds Rate by approximately 4.25%, from a .25% rate in March 2022 to a 4.5% rate at the end of the year, the fastest pace of rate increases in U.S. history. In the low-interest rate environment of the last 15 or so years, low-rate interest driven transactions employed by high net worth individuals were extremely effective in planning, which includes charitable planning. While such planning should and will continue, given how significantly interest rates in the U.S. have recently risen and could continue to rise in 2023, charitably inclined clients should consider the effect these rate increases will have on such charitable planning techniques. This article explores the impact of rising interest rates on two common charitable trust structures, Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs).

With the widespread adoption and use of cryptocurrencies around the world, companies and individuals are increasingly encountering situations that require a valuation of their cryptocurrency assets. As a fundamental matter, IRS recently issued guidance requiring that cryptocurrencies be treated and appraised as property, rather than securities. In Chief Counsel Advice Memorandum ILM 202302012 (released January 10, 2023), IRS advised that a taxpayer who makes a charitable donation of more than $5,000 of cryptocurrency must submit a qualified appraisal of its fair market value (FMV) to qualify for a charitable deduction under Sec. 170(a) and cannot satisfy this requirement by relying on the cryptocurrency's value as listed on an exchange.

Decentralized Finance (DeFi) is a new, but rapidly growing blockchain-based investment and trading alternative to traditional banks and finance, specifically for cryptocurrency users.

The global pandemic accelerated the adoption of telehealth and created a surge in new businesses. While growth has slowed in recent quarters, tax complexity remains around telehealth and friendly professional corporations (Friendly PC). The volume of new guidance triggered by the Inflation Reduction Act of 2022 (the IRA) has sidelined much needed guidance on the tax consolidation of Friendly PC structures for the near term. Due to the unique business model and operations of telehealth companies with Friendly PC structures, there are significant tax planning opportunities around federal income tax consolidation, transfer pricing, and state taxes.

Over the past few years, state and local governments have received a financial boost from federal aid related to the COVID-19 pandemic and surprisingly robust tax revenues.