IRS Issues Guidance On Calculating Unrelated Business Income Tax

The Tax Cuts and Jobs Act changed the way tax-exempt organizations calculate their unrelated business taxable income (UBTI). No longer can organizations follow the rules used by taxable entities and aggregate income and deductions from all of their unrelated trades or businesses. Rather, new code section 512(a)(6) requires organizations to separately compute their UBTI for each “trade or business” and prohibits using losses from one trade or business to offset gains in another. Section […]

By | August 2nd, 2018 ||

State Tax Law Updates

A number of states have recently proposed or passed new laws related to state-level taxation, some of which are taxpayer-friendly and some of which are expected to impose additional tax burdens on taxpayers. They vary in subject from efforts by states to mitigate the new federal limitation on the deductibility of state and local taxes to proposed changes to state income taxation of “carried interest.” This update reflects some of those recent proposals and […]

By | July 27th, 2018 ||

An Overview Of The State Tax Implications Facing The Cannabis Industry

Currently eight states regulate recreational adult-use cannabis1 and twenty-eight states and Washington D.C. allow the use of medically prescribed cannabis.2 The legalization of both recreational and medically prescribed cannabis led to nearly $9 billion in sales in 2017 along with a corresponding tax windfall in many of these states. As the legal cannabis industry grows at an exponential pace, cannabis businesses should be aware of the various tax implications facing the industry.
State Income Tax and Internal […]

By | July 8th, 2018 ||