Blogs
Proposal to Tax Carried (Profits) Interests as Ordinary Income
Reforms to the tax treatment of carried (profits) interest has been a topic for many years. The Administration aims to ensure equal treatment of labor and capital income since the character of the income for carried (profits) interests has been under scrutiny. What...
Unlocking Opportunities: IRS Proposes Regulations for Clean Energy Tax Credit Transfers under the Inflation Reduction Act of 2022
The Internal Revenue Service (IRS) recently unveiled proposed regulations aimed at establishing clear procedures and rules for eligible taxpayers to transfer or sell clean energy tax credits under the Inflation Reduction Act of 2022. The proposed regulations introduce...
Connecticut Governor Signs Budget Bill Making PTET Elective and Enacts Other Tax Changes
Connecticut Governor Ned Lamont signed budget bill H.B. 6941 on June 12, 2023 making major changes to the state's pass-through entity tax (PTET). Beginning in 2024, the PTET will be optional rather than mandatory. Eligible entities that wish to elect to pay the tax...
Inflation Reduction Act – New Corporate Alternative Minimum Tax
Effective for tax years beginning after December 31, 2022, the Inflation Reduction Act of 2022 (IRA) imposes a 15 percent Corporate Alternative Minimum Tax (CAMT) on applicable corporations. The new tax will have significant tax implications on large applicable...
A Solo 401(k) Offers Attractive Tax Incentives for Small Business Owners
The main question we hear from small business owners is how they can find more ways to reduce their taxable income. A solo 401(k) offers itself as an attractive option when compared to other retirement accounts available. What makes these plans so appealing is their...
Maximizing Tax Benefits: Navigating Section 174 Rules and Leveraging the FDII Deduction for R&E Costs
The latest regulations, known as Section 174 rules, now require taxpayers to capitalize and gradually deduct research and experimental (R&E) costs incurred in taxable years starting on or after January 1, 2022. The deduction is calculated based on a straight-line...
Hobby or Business: Here’s What to Know About That Side Hustle
The line between having a hobby and running a business can often be confusing, but knowing the difference is critical because hobbies and businesses are treated differently when it’s time to file your taxes. The biggest difference between the two is that hobbies are...
1099 vs W-2: Understanding the Key Differences for Workers and Employers
The classification of workers in the United States as either 1099 (independent contractors) or W-2 (employees) has significant implications for both parties involved. Understanding these differences is vital for contractors and employers to ensure tax and labor law...
Taxation of Non Fungible Tokens
Nonfungible Tokens (NFTs) have gained immense popularity in recent years as unique digital assets that can be used to certify ownership and authenticity of associated rights or assets. However, the tax treatment of NFTs remains uncertain, which has raised concerns for...