Donald Trump’s Billion Dollar Loss: Good Tax Planning, or Dubious Trick?

Donald Trump’s tax returns have led to intense interest in and speculation concerning his tax positions. Recently, the New York Times[1] reported that he had nearly a billion dollars of net operating loss on his 1995 tax returns, available for carryover for many years. Tax commentators have speculated about the loss and the corresponding “cancellation…

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Nevada Enacts New “Commerce Tax” Into Law

Effective on July 1, 2015, Nevada S.B. 483 imposes an annual commerce tax on business entities engaged in business in Nevada, whose ‘Nevada gross revenue’ in a taxable year exceeds $4,000,000.[1] For this purpose, the tax year is a static twelve-month period running from July 1 through June 30 of the following year, regardless of…

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Business Structure of Marijuana Business

Harborside Health Center, one of the nation’s biggest cannabis dispensaries located in Oakland, CA, is challenging the IRS’s efforts to collect a $2.4 million tax bill resulting from an audit of its returns from 2008 and 2009. The IRS claims that Harborside was not allowed to take business deductions under Section 280E of the Internal…

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Quick Guide to Section 338(h)(10) and Section 336(e) Elections

From a nontax standpoint, the purchaser of a corporate business often prefers buying the target corporation’s stock rather than its assets. A stock purchase is usually easier to accomplish than an asset purchase and is often necessary to avoid interruption of contractual and other relationships of the target corporation. For federal income tax purposes, however,…

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