Ideas & Insights

This Alert summarizes impacts of the recently-issued interest deduction limitation guidance on the real estate industry.

Taxpayers often struggle to quantify participation for the passive activity rules. A recent court decision may affect those calculations.

Proposed carried interest regulations are mostly as expected with a few new items and detailed computational rules.

In a request for comments, the service outlines potential calculation methods – but also suggests disallowing an extremely common method.

The ability to revoke elections and file amended returns means partnership may have more than one option to benefit from CARES Act.

Notice 2020-23 clarifies that most filing, payment and election obligations for S corporations and partnerships is postponed until July 15.

Motivated by the tax relief provisions of the CARES Act, the IRS is allowing all partnerships to file 2018 and 2019 amended returns.

State tax cash-flow maximization and risk minimization are available for private equity groups and their portfolio companies.

Employees working remotely due to the COVID-19 pandemic may result in income tax consequences to both the employee and the employer.

Law firms and professional services businesses are experiencing challenges with the COVID-19 pandemic, creating state and local tax issues.

CARES Act provides general increase to the limitation amount (i.e., the maximum allowable deduction) and special rule for partnerships

RSM's virtual summit on transformative tax issues facing the middle market is available as an on-demand webcast.

New partnership examination procedures which began in tax year 2018 under the BBA are more complex than previous procedures.

Rate reduction triggered after revenue metrics achieved; draft TCJA guidance published addressing the personal income tax.

Tax Court holds records and testimony by taxpayer were sufficient to support their claim that rental activities were non-passive.

The IRS issued final regulations on the designation and authority of the partnership representative under the new partnership audit regime.

Burden-shifting rule for individuals requiring the government to prove the validity of penalties in litigation does not reach partnerships.

When considering this technique to accomplish a tax-free asset distribution, favorable IRS rulings have become more difficult to obtain.

Increasing wages to maximize 20 percent pass-through deduction must be reconciled with reasonable compensation rules.

An S-corporation opting to change to a C-corporation, may need to change certain accounting methods, requiring a section 481(a) adjustment.