In a recently decided case 3 University Plaza SPE, LLC v. City of Hackensack 5002-2014, 1670-2015, 3553-2016, 1163-2017, 3768-2018, 12891-2019 – 3 University Plaza SPE LLC, et al. v. Hackensack City (njcourts.gov) concerning a large 225,000 square foot class A office building, the Tax Court addressed the valuation community’s on-going debate as to whether certain
Tax Court
Tax Court holds that foreign corporation’s sale of a partnership interest not taxable in US
By Steven M. Saraisky & Philip Hirschfeld on
The US Tax Court recently held that a foreign corporation is not subject to US income tax on the sale of a partnership interest where the partnership conducts a US business. In so holding, the Tax Court rejected a 26 year old Revenue Ruling (Rev Rul 91-32) that reached the opposite conclusion. For foreign investors…
Receiving a Deduction for Your Charitable Contribution on Giving Tuesday
By Daniel B. Axman on
Posted in Income Tax
Today is Giving Tuesday, so today’s blog post focuses on ensuring that you are doing everything necessary to receive your charitable deduction, especially in light of a recent court decision. In a case that was decided just two weeks ago, the Tax Court found that a taxpayer could not take a deduction for contributions of…
NJ Tax Court Finds Gift in Contemplation of Death Subject to Inheritance Tax
By Steven M. Saraisky on
Posted in Estate Tax
After meeting with a lawyer who advised him about divesting himself of assets so that he one day would be able to qualify for Medicaid, Peter Muscle, age 88, made a gift to his girlfriend of PSE&G stock having a value just over $1 million. He died six months later.
As most readers know, New…
Termination of Life Insurance Policy with Loans in Excess of Basis Triggers Gain
By Steven M. Saraisky on
Posted in Estate Tax, Income Tax
Sometimes a client owns life insurance and borrows against the policy in order to pay premiums. After many years of this, it is not unusual for the loans against the policy to exceed the owner’s basis in the policy. If the policy is then terminated (ie, the client surrenders the policy or just stops paying…