Subscription documents for certain private funds and investment management agreements for certain separately managed accounts will need to be updated by August 16, 2021, to reflect new “qualified client” assets-under-management and net worth thresholds. These changes directly affect private funds relying on the 3(c)(1) exemption, but many 3(c)(7) documents contain qualified client representations and may… Read More »

It is an uncertain time to prepare for any possible changes to the tax code. Tax planning for any proposed changes is challenging due to the uncertainty around which tax provisions will pass. However, the more knowledgeable taxpayers are about the possibilities, the more high-income taxpayers can achieve their tax planning goals and adjust their… Read More »

The US Treasury released a 114-page “Green Book” general explanation of tax proposals included in President Joe Biden’s fiscal year (FY) 2022 budget submission to Congress on May 28, 2021. The President’s budget proposes to increase IRS funding by $1.3 billion to $13.2 billion as part of efforts to collect $778 billion over 10 years… Read More »

Monday, May 17 is the deadline for more than just individual returns. Here is a list of some other May 17 tax deadlines: Individual return extension requests– Extend beyond May 17 by filing Form 4868 or by making an electronic tax payment. Contributions to IRAs and health savings accounts– 2020 contributions to individual retirement arrangements… Read More »

The IRS has provided guidance on tax relief for deductions for food or beverages from restaurants. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 added a temporary exception to the 50% limit on the amount that businesses may deduct for food or beverages. The temporary exception allows a 100% deduction from January 1,… Read More »

The Internal Revenue Service (IRS) announced yesterday that the deadline for filing 2020 individual income tax return has been extended to May 17, 2021 (from April 15, 2021). Taxpayers have more time to apply the tax relief and changes contained in recent stimulus legislation (American Rescue Plan). We have mentioned below key points for your… Read More »

President Biden signed the American Rescue Plan Act (“ARPA”) of 2021 on March 11, 2021, a massive $1.9 trillion stimulus package intended to address the extraordinary impact of the coronavirus pandemic.  Important highlights are mentioned below: HIGHLIGHTS: Stimulus payments and additional supplemental unemployment benefits to individual taxpayers Aid to states and municipalities, hospitals, and schools… Read More »

The Small Business Administration (SBA) has released an application on January 8, 2021 and clarify how borrowers can qualify and apply for the second round of Paycheck Protection Program (PPP) loans. First-time and second-draw PPP borrowers are eligible for second round of PPP loans if they meet the eligibility requirements. The second round of loans… Read More »

A QPRT is an irrevocable grantor trust, which allows an individual to take advantage of the gift tax exemption by putting a personal residence, either primary or secondary, into a trust. The grantor determines how long he will retain possession and use of the residence. Once the term is up, ownership is passed onto the beneficiaries. Ultimately,… Read More »

Congress used the 2021 governmental funding legislation as the vehicle to pass much needed COVID-19 relief, and more.  Spanning 5593 pages, the mammoth $2.3 trillion legislation contains some $900 billion COVID relief including most popular PPP loans for small businesses. The COVID-related Tax Relief Act of 2020 (COVIDTRA) and the Taxpayer Certainty and Disaster Tax… Read More »