On April 8, 2021, the Treasury Department and the Internal Revenue Service issued guidance regarding the temporary 100-percent deduction for food and beverage purchased from restaurants.

Beginning January 1, 2021, through December 31, 2022, businesses can deduct 100% of their food or beverage expenses paid to restaurants if the business owner (or an employee of the business) is present when food or beverages are provided, and as long as the expense is not lavish or extravagant under the circumstances.

The guidance defines eligible restaurants to include businesses that ...

COVID-19 is wreaking havoc worldwide. It has even infected the real estate industry, particularly the tax aspects of operating in the real estate industry such as Section 1031 like-kind exchanges.

The basics of like-kind exchanges remain unchanged, notwithstanding COVID-19: No gain is recognized if real property held for productive use in a trade or business or for investment is exchanged solely for real property of a like kind to be held for such purposes. But with deferred and reverse exchanges being the norm and simultaneous exchanges being the exception, it is now virtually ...

The Coronavirus Aid, Relief, and Economic Assistance Security Act (“CARES Act”), signed into law on March 27, 2020, provides significant relief provisions for small businesses by making changes to certain tax provisions enacted under the 2017 Tax Cuts and Jobs Act (“TCJA”). This client alert briefly summarizes these changes which may provide relief to businesses immediately, prospectively and retroactively. In addition, we will share some insights on the practical applications of these rules to help you identify which may be relevant to your business.

• Net Operating ...

Even though property acquired during marriage is presumed to be community property, for property tax change in ownership purposes the Los Angeles County Property Tax Assessor’s Office believes otherwise.  Fortunately, the Assessment Appeals Board strongly disagreed with the Assessor.

Spouses domiciled in California and owning California real property as community property, either directly or indirectly through an entity, have a reasonable expectation that the property tax consequences arising from their dealings with that property will be governed by their status as ...

In CCA 201517006 (dated 10/9/14 and released 4/24/15), the general partner of a publicly traded partnership (PTP) had, in addition to its capital interest, a profits interest in the PTP called “incentive distribution rights” (IDRs). We know the IDRs are a profits interest because they “did not carry any interest in partnership capital [on the date of the issuance of the IDRs] but entitled [the general partner] to share in future partnership profits and quarterly distributions”. What is not clear in the CCA is why the IDRs received the benefits of the Safe Harbor of Revenue ...

The Supreme Court has agreed to review the Sixth Circuit Court of Appeals decision in United States v. Quality Stores which held that severance payments to involuntarily terminated employees were supplemental unemployment compensation benefit payments, rather than wages, that were not subject to FICA tax. The Supreme Court is not expected to issue its decision on this matter until this summer.

Employers who paid FICA tax on severance pay on an employment tax return for 2010 or later should consider filing protective refund claims in order to ensure that they receive a refund of the ...