Beginning January 1, 2024, a new opportunity is set to arise for beneficiaries of qualified tuition programs under Section 529 of the Internal Revenue Code (“529 accounts”), according to the latest provisions under the SECURE Act 2.0 (the “Act”). Under this forthcoming law, these beneficiaries will obtain the ability to rollover their funds from the…
In a significant legal move last month, Illinois upheld the charitable tax exemption for hospitals, marking a moment to remember for hospitals and legal professionals who work with non-profit organizations. The case, referred to as Carle Foundation v. Dept. of Revenue, played out in the Fourth District Court of Appeals, which sustained a previous court…
In a recent development, the New York State Department of Taxation & Finance, colloquially known as “the Tax Department”, published a private letter ruling concerning the conveyance of license agreements for parking spaces and storage spaces. In the context of a condominium unit’s conveyance, these transfers are considered a single conveyance of real property under…
Back in 2019, the New York State Legislature brought into action the Climate Leadership and Community Protection Act (CLCPA), a robust plan designed to measurably decrease greenhouse emissions throughout the state while also considerably increasing its renewable energy capacity. Outlined in the CLCPA is a mandate that, by 2030, up to 70% of the statewide…
In July 2023, the Canada Revenue Agency (CRA) released a critical document: GST/HST Notice 325. This Notice pertains to services provided by certain insurance intermediaries and puts into effect a key shift in how the CRA approaches the taxable status of commissions and other considerations made payable to insurance intermediaries. This change notably impacts Third…
The complex world of international taxation continues to evolve and hold the attention of multi-national corporations and international law firms. A particular facet of this domain, which is currently under scrutiny, is the issue of deferred compensation and services overseas, specifically regarding the complexities of withholding taxes. Approaching the year’s end often brings about a…
As we continue to immerse ourselves in the fascinating world of virtual currencies, digital wonders like Bitcoin, and Dogecoin, have captured the attention of adventurers and investors alike. For those venturing into this dynamic domain, it’s crucial to comprehend the taxing and complex maze of accounting that shadow these captivating assets. To provide some guidance…
When international corporations plan on expanding their reach across borders, they must navigate through a labyrinth of sophisticated legal and business matters. Doing so necessitates a comprehensive understanding of various corporate considerations pivotal for scaling effectively across different jurisdictions. Covered in detail during a recent episode of AGG Talks is an illuminating conversation on these…
The perplexing question of “to Roth or not to Roth” for catch-up eligible individuals recently became significantly less complicated following new IRS guidance issued last week. The guidance outlines a delay in the implementation of mandatory Roth catch-up contributions, a topic we explored in depth in a previous blog post. The recalibration concerns SECURE 2.0,…
On August 4, 2023, the Department of Finance released the draft of a significant piece of legislation containing several previously announced investment tax credits. The focus of these credits is primarily the renewable and clean energy sectors. The document, which has been coined as the ‘Proposed Legislation’, features comprehensive regulations and changes pertaining to green…
An intriguing legal development in the realm of drug regulation is unfolding as the U.S Department of Health and Human Services recommends the reclassification of marijuana under the Controlled Substances Act. Attorney Jon Purow commented on the significance of this move, stating, “This equates to the largest possible shot in the arm of profitability when…
In a recent edition of Texas Tax Roundup, the focus appeared to be predominantly on the subject of mixed beverages taxes. While the July period often sees many taking their hard-earned vacation time, escaping the Texas heat, it seems the legal and tax considerations surrounding this popular libation remained a hot topic. The issue of…
On 19 July 2023, the Luxembourg parliament ratified the new Luxembourg-UK double tax treaty (“DTT”). If all goes as planned, the measure should take effect in 2024, marking an important move for companies and investment funds operating in both countries. The UK ratified the treaty earlier, on 7 June 2022. This agreement introduces key changes,…
The Senate Finance Committee is calling for input from the public regarding its inquiries into digital asset taxation, thereby signaling another step towards integrating and understanding the technologies and marketplaces behind this new frontier of finance. As reported by JD Supra, the panel released an open letter to the Digital Asset Community on July 11,…
Recent developments have highlighted a delay in the implementation of an important provision of the SECURE 2.0 Act of 2022. The IRS has announced a postponement in the execution of the Roth Catch-Up Contribution Provision for two years. This decision is vital to participants in 401(k) plans, 403(b) plans, or governmental 457(b) plans aged 50…
In a recent development, the US Treasury Department and the IRS have proposed new regulations regarding the sale and exchange of digital assets, including cryptocurrencies and Non-Fungible Tokens (NFTs). These new rules seek to clarify the tax implications for US taxpayers who conduct transactions in these emerging digital asset classes. The proposed regulations are currently…
In a significant development, a Texas federal court recently ruled in favor of sanctions against Tornado Cash, a notable cryptocurrency mixer service. The service, which aims to obscure the source of crypto transactions, found itself at the receiving end of charges laid by the Department of Justice. It was recognized as an entity liable for…
In a major reveal regarding cryptocurrency taxation regulations, the IRS has issued an extensive guidance concerning the federal income tax treatment of staking income, encapsulated in Revenue Ruling 2023-14. Inevitably aligning with its previous guidelines on hard forks, the IRS’s ruling verifies that taxpayers acknowledge taxable income upon gaining dominion and comprehensive control over their…
In a recent report published on August 10, 2023, the Department of Taxation and Finance (DTA) disclosed a few intriguing cases added to their website on the late July 27. The report was initially overlooked due to the surge of cases that appeared on August 3. These recent enthralling legal filings and their implications are…
Four military veterans recently lodged a lawsuit at the New York State Supreme Court. The suit was filed against the New York Office of Cannabis Management (OCM), wherein the plaintiffs alleged that the rules of the agency, which favor applicants with previous marijuana-related convictions when issuing cannabis dispensary licenses, run contrary to the New York…
In important recent developments, Montgomery and Anne Arundel Counties in Maryland have increased their recordation and transfer taxes. At the same time, the increases in recordation and transfer taxes imposed in the District of Columbia in 2019 are anticipated to expire. For corporations and law firms dealing with properties in these regions, it’s critical to…
The term “indirect tax” has a broad application, describing taxes imposed on goods, land, or services, (or transactions involving said commodities). This is distinct from “direct taxes”, which are levied upon income or profits. In the context of the Build-to-Rent (BTR) sector, the most substantial indirect taxes are the goods and services tax (GST), transfer…
In the world of business law, confusion over terms and definitions can lead to grave errors in the application and understanding of the law. A recent example that serves as a stark reminder of the importance of terminological preciseness is the conflation of Limited Liability Companies (LLCs) and corporations. Law Professors Samantha Prince and Joshua…
In recent years, multinational corporate behemoths have turned to some innovative strategies in the quest to minimize their tax obligations. Tax inversion is one such tactic that is gaining prominence. To put it simply, tax inversion involves a company relocating its headquarters to a country with a lower tax rate. One company that has drawn…
Clearer prospects are emerging in the legal and taxation landscape surrounding cryptocurrency staking rewards. On July 31, 2023, the Internal Revenue Service (IRS) released Revenue Ruling 2023-14 that discusses the US federal income tax treatment of cryptocurrency tokens that taxpayers receive as a reward for validating blockchain network transactions. Operating under the proof-of-stake consensus mechanism,…