Insights

The United States House Energy and Commerce and Ways and Means Committees and the Senate Finance Committee have released bipartisan compromise legislation that would repeal the Sustainable Growth Rate (SGR) formula for physician payments and transition Medicare towards a value-based payment system. The legislation “not only fully repeals the broken…

2013 is the first year of the 3.8 percent Medicare Surtax, which was enacted as a part of the law popularly known as “Obamacare.” Taxpayers have a one-time opportunity to make an election on their 2013 federal income tax returns to permanently reduce exposure to the new surtax. Before filing…

When a lender discharges debt for less than full consideration, the borrower by default recognizes income for federal income tax purposes. “Qualifying Real Property Indebtedness” is an exception. Forgiveness of Qualifying Real Property Indebtedness may be excluded from income. New IRS guidance expands this exclusion. The Qualifying Real Property Indebtedness…

Florida Governor Rick Scott called for beginning a phase-out of sales tax on commercial rents in fiscal year 2014—2015. A general announcement, but no specifics of the phase-out, was provided in a FAQ statement issued by the Governor’s office on January 28, 2014 (http://www.flgov.com/wp-content/uploads/2014/01/FAQ.pdf). Florida generally imposes sales tax on…

On January 30, IRS proposed income tax regulations reducing flexibility to allocate partnership deductions. The regulations also limit tax-free contributions and distributions of leveraged property, including mortgaged real estate, to and from partnership entities. The taxation of partnerships and many LLCs could change. Old transactions are not permanently grandfathered. Pre-existing…