Estate Planning - Recent Threads

New York City extends pied-a-terre exemption deadline, removes some property owners from list

Nageshwaran Gopal — Mon, 31 Aug 2026 20:03:57 GMT

New York City has pushed back the deadline for residential property owners to request an exemption from the new pied-a-terre surcharge and is sending a new round of letters reflecting revised initial determinations.

Amid litigation over the rollout of the new pied-a-terre tax on residential properties that meet set value thresholds and don’t serve as a primary residence, New York City has extended a key deadline. Property owners now have until October 6 to apply for a surcharge exemption.

This is the second deadline extension — the city previously pushed the initial late August deadline to September 18.

To dig deeper, visit the original article on the Thomson Reuters blog.

Michigan enacts housing opportunity credit against individual or corporate income tax

Neil Vicente — Mon, 24 Aug 2026 10:58:58 GMT

Housing Opportunity Tax Credit

The bill creates a new “Housing Opportunity Tax Credit” available against both the individual income tax and the corporate income tax. The credit is for qualified housing projects, and the amount is determined by the Michigan State Housing Development Authority (MSHDA) via an allocation report. The credit is nonrefundable, but excess credit may be carried forward for up to 10 years. Recapture of the state credit is required if the corresponding federal low-income housing tax credit for the same project is recaptured.

Qualified taxpayer

A “qualified taxpayer” means any of the following: (1) a taxpayer that is the owner of a qualified project and has received an eligibility statement for that qualified project; (2) a taxpayer that is the owner of a qualified project that received an approval notice and has submitted a final cost certification and a request for an eligibility statement to the authority but the authority has not yet approved the final cost certification and issued the eligibility statement to the owner; or (3) a taxpayer that owns a direct or indirect, through one or more other flow-through entities, interest in an owner described under (1) or (2) and that has been allocated a housing opportunity tax credit at any time prior to filing an annual or amended return on which a housing opportunity tax credit is claimed.

To dig deeper, visit the original article on the Thomson Reuters blog.

Experts flag uneven real estate market trends, Opportunity Zone transition issues

Nageshwaran Gopal — Mon, 03 Aug 2026 18:43:43 GMT

Real estate market shows ‘flight to quality’

PwC Real Estate Advisory Director Aaron Pinet said commercial real estate is recovering, although not through the broad-based rebound many market participants expected. Pricing has become more stable, he said, but investors still need a credible, property-level growth case before accepting real estate risk.

Capital markets are functioning better than transaction-market headlines may suggest, Pinet said. Commercial mortgage-backed securities issuance is ahead of last year’s pace, and investment-grade real estate investment trusts continue to access unsecured debt markets. Still, debt costs and interest-rate protection costs remain elevated.

To dig deeper, visit the original article on the Thomson Reuters blog.

Michigan enacts Housing Opportunity Tax Credit program

Nageshwaran Gopal — Mon, 03 Aug 2026 18:33:27 GMT

Credit cap and amount

For the 2027 award cycle, the total base annual amount of credits available for reservation is $42 million. For each award cycle after 2027, this base amount is adjusted annually for inflation based on the U.S. Consumer Price Index for all urban consumers. The total “award cycle cap” for any given year is the sum of the base annual amount, any unused credit amounts from the preceding award cycle, and any credits that were recaptured or otherwise returned to the authority. The annual credit awarded for a specific project cannot exceed the lesser of the amount necessary for the project’s financial feasibility or the “adjusted annual federal credit amount,” which is defined as one-sixth of the aggregate federal low-income housing tax credit allocated to the project over its federal credit period.

To dig deeper, visit the original article on the Thomson Reuters blog.

6th Circuit rules property tax foreclosure can be avoided as preferential transfer under Bankruptcy Code

Neil Vicente — Mon, 27 Jul 2026 11:46:58 GMT

Background

The debtor owned a home in Michigan and failed to pay her property taxes, which prompted the county treasurer, who was responsible for tax collection, to initiate foreclosure proceedings against the property. The dates of the various background events are critical to understanding the 6th Circuit’s ultimate ruling.

On February 18, 2022, the treasurer obtained a foreclosure judgment ordering that title to the property would vest in the county treasurer if the debtor did not pay the delinquent taxes by March 31, 2022.

On March 31, 2022, title in the property vested in the county treasurer because the debtor failed to pay her taxes.

To dig deeper, visit the original article on the Thomson Reuters blog.

South Carolina enacts “Heirs’ Property Tax Relief Act”

Neil Vicente — Mon, 27 Jul 2026 11:41:47 GMT

Qualifying property

The new law excludes transfers of “heirs’ property” made to a “qualified family member” for the purpose of clearing the title. To qualify: (1) the property must be “heirs’ property,” which means real property owned by one or more individuals as tenants in common, which was inherited from a relative and for which no formal probate or recorded conveyance transferred clear title to the current owners; (2) the transfer must be to a “qualified family member,” which means a person related to the prior owner by blood, marriage, or adoption including, but not limited to a spouse, child, grandchild, sibling, niece, nephew, aunt, uncle, cousin, or those identified as heir owners by a court of competent jurisdiction; and (3) both the person transferring the interest (grantor) and the person receiving it (grantee) must have had an ownership interest in the property before the transfer.

To dig deeper, visit the original article on the Thomson Reuters blog.

Hawaii amends eligible business activities for Enterprise Zone Program

Nageshwaran Gopal — Mon, 20 Jul 2026 13:03:36 GMT

Enterprise zone designation

The Department of Business, Economic Development, and Tourism may declare up to two census tracts on state land, that contain an innovation enterprise to be designated as an enterprise zone, subject to the governor’s approval. The designation of census tracts must be made without regard to county application requirements, geographic limitations, or eligibility criteria otherwise applicable to enterprise zones.

Eligible business activity

The definition of “eligible business activity” is amended to include additional activities that may qualify for enterprise zone benefits, which include the sale of tangible personal property that is manufactured and sold within an enterprise zone for consumption or use by the purchaser, rather than for resale. Eligible activities are further expanded to include research, development, sale, or production of all types of medical biotechnology products, agricultural biotechnology products, all types of maritime biotechnology products, and medical and health care services. It also adds activities of the Hawaii food and product innovation network, professional services by health care professionals in health care-related sectors, aerospace technology research and development, and information technology design and production services.

To dig deeper, visit the original article on the Thomson Reuters blog.

Maryland Extends Income and Property Tax Incentives to Include U.S. Space Force Members

Nageshwaran Gopal — Mon, 22 Jun 2026 15:37:05 GMT

Job Creation Income Tax Credit

For the Maryland job creation income tax credit pursuant to Md. Code Ann. Tax-Gen. § 10-704.4 and Md. Code Ann. Econ. Dev. § 6-304, “Qualified veteran employee” means an individual who is a veteran and is a qualified veteran as defined under IRC § 51(d)(3)(A) for purposes of the federal Work Opportunity Tax Credit. Previously, the definition included only active military, naval, or air service referring to 38 U.S.C. Section 101 prior to the inclusion of the space service. The amendment is applicable to all taxable years beginning after December 31, 2025.

Disabled Veteran or Surviving Spouse Local Property Tax Credits

For the local property tax credit authorized by Md. Code Ann. Tax-Prop. § 9-265, “disabled veteran” means an individual who is a veteran and has been declared by the U.S. Department of Veterans Affairs to have a: (1) permanent service-connected disability of at least 50% that results from blindness or any other disabling cause that is reasonably certain to continue for the life of the veteran and was not caused or incurred by misconduct of the veteran; or (2) nonpermanent service-connected disability of 100% that results from blindness or any other disabling cause that was not caused or incurred by misconduct of the veteran.

To dig deeper, visit the original article on the Thomson Reuters blog.

IRS Proposes Increasing Estate Tax Closing Letter Fee

Nageshwaran Gopal — Mon, 08 Jun 2026 15:28:26 GMT

Estate Tax Closing Letters

An executor, administrator, or other person in possession of estate property can file an application for determination of the estate tax and discharge from personal liability. The application should be filed with the district or service center director where the estate tax return is required to be filed.

An estate tax closing letter, IRS Letter 627, confirms the estate tax return has been accepted by IRS as filed or has been accepted after an IRS adjustment with which the estate agrees.

To dig deeper, visit the original article on the Thomson Reuters blog.

New York Authorizes NYC Multiple Dwelling Rehabilitation Tax Abatement

Nageshwaran Gopal — Mon, 08 Jun 2026 14:35:02 GMT

NYC Property Tax Abatement

The legislation authorizes a city with a population of one million or more, effectively New York City, to adopt a local law providing a real property tax abatement for eligible buildings in which eligible rehabilitation construction has been completed. The aggregate abatement cannot exceed 100% of the total certified reasonable cost of the eligible construction, as determined under rules and regulations of the local housing agency. The abatement cannot be effective for more than 20 years, and the annual abatement cannot exceed 8.33% of the total certified reasonable cost of the eligible construction.

The annual abatement for an eligible building in any consecutive 12-month period cannot exceed the amount of real property taxes payable for the building during that period. However, the annual abatement cannot exceed 50% of the real property taxes payable during the period for:

an eligible rental building owned by a limited-profit housing company or redevelopment company;
an eligible homeownership building; or
an eligible regulated homeownership building.

To dig deeper, visit the original article on the Thomson Reuters blog.

Treasury Official Unpacks Conservation Easement Settlement Offer, Previews Future Plans

Nageshwaran Gopal — Mon, 25 May 2026 13:31:41 GMT

On May 13, the IRS announced yet another opportunity for taxpayers involved in conservation easement disputes to settle their case. A day later, Treasury Assistant Secretary for Tax Policy and Acting IRS Chief Counsel Ken Kies elaborated on the settlement offer and previewed forthcoming initiatives.

Latest Conservation Easement Settlement Offer

Kies, speaking on May 14 at a Tax Council Policy Institute event, described efforts to identify improper conservation easements as a bipartisan matter. He highlighted the Senate Finance Committee’s 2020 bipartisan report on abusive syndicated conservation-easement transactions.

To dig deeper, visit the original article on the Thomson Reuters blog.

Multistate Tax Trends: Former FTB Attorney Shail Shah on California Controversy and Planning Strategies

Nageshwaran Gopal — Mon, 11 May 2026 16:16:25 GMT

Multistate tax practice is always evolving. The Catalyst state team stays on top of trends, frequently consulting with SALT practitioners on the front lines and incorporating their insights, along with our in-depth analysis, into Checkpoint Catalyst topics that integrate into CoCounsel Tax. This Multistate Tax Trends Q&A series for Checkpoint News delivers quick, actionable insights from some of the practitioners our team follows most closely.

This installment features Shail Shah, a BDO Principal who focuses his practice on complex California tax planning and representation. His experience includes working as an attorney at the California Franchise Tax Board (FTB), and he draws on this experience in an attempt to turn audits into potential refund opportunities. Shail is an Executive Committee member of the Tax Section for the California Lawyers Association (CLA). He also assisted the Catalyst team in significant post-Wayfair topic development.

To dig deeper, visit the original article on the Thomson Reuters blog.

Earned Wage Access Raises Renewed Questions Under IRS Constructive Receipt Rules

Nageshwaran Gopal — Mon, 11 May 2026 16:13:51 GMT

Earned wage access (EWA) programs allow employees to draw a portion of wages already earned before a scheduled payday and have become a familiar element of employer financial‑wellness strategies. While the federal tax treatment of EWA has surfaced only intermittently in recent policy discussions, payroll professionals say the issue remains a persistent and unresolved question: how early access to wages fits within longstanding IRS income‑recognition rules.

At the center of that question is the IRS constructive receipt doctrine, a foundational tax concept that determines when wages become taxable regardless of when cash is actually paid. Consumer regulators have recently clarified how certain EWA models are treated under lending laws, but payroll and tax specialists say questions around tax timing and employment tax compliance remain open.

To dig deeper, visit the original article on the Thomson Reuters blog.

AI Spending Puts a New Question in Deal Talks: Expense or Investment?

Nageshwaran Gopal — Mon, 11 May 2026 16:09:16 GMT

Artificial intelligence is giving some baby boomer business owners one more reason to sell: They don’t want to deal with it.

But walking away is not so simple.

For owners heading to market, AI is becoming more than a tech headache. It is becoming a test of the company’s books—and potentially its price tag.

Buyers and private equity firms want to know whether privately held companies have invested in AI, automation and other tools that can boost profits. But they also want answers to tougher questions: How were those costs recorded? Do they support the company’s earnings story? And was management making a smart bet—or just throwing money at the hottest trend in business?

“There are many boomers who are kind of just throwing their hands up,” said Joshua Chananie, a partner, board member and consumer products leader at SAX Advisors, an independent accounting and advisory firm.

To dig deeper, visit the original article on the Thomson Reuters blog.

The CAPE tariff refund system is here. Is your global trade team ready?

Nageshwaran Gopal — Mon, 27 Apr 2026 12:13:44 GMT

$166 Billion in tariff refunds signal a new test for global trade teams

Highlights

CAPE system processes $166 billion in tariff refunds across 330,000 importers and 53 million shipments.
Phased rollout creates uncertainty in processing timelines, documentation requirements, and cash flow planning.
Modern trade technology platforms automate entry identification, documentation management, and financial impact analysis.

To dig deeper, visit the original article on the Thomson Reuters blog.

Debate Over Indexing Capital Gains to Inflation Reignites

Nageshwaran Gopal — Mon, 30 Mar 2026 14:54:34 GMT

A coalition of conservative groups and Republican lawmakers is pressing the Treasury Department to unilaterally index capital gains for inflation, a move proponents call a fair tax cut, but which opponents decry as an illegal executive action that would disproportionately benefit the wealthy and add hundreds of billions of dollars to the national debt.

Indexing Proponents argue that taxing gains resulting purely from inflation is unfair. Under current law, when an asset is sold, the capital gain is calculated based on the difference between the sale price and the original purchase price, or “cost basis.” Indexing would adjust this cost basis for inflation, meaning taxes would only be levied on the “real” gain in value.

To dig deeper, visit the original article on the Thomson Reuters blog.

California Enacts Property and Transfer Tax Exemptions for Tribal Land Preservation

Nageshwaran Gopal — Tue, 17 Mar 2026 11:52:44 GMT

Property Tax Exemption

Applicable to lien dates for fiscal years 2026–2027 through 2031–2032 and repealed as of January 1, 2033, the legislation includes within the welfare exemption provisions land that is used exclusively for the preservation of native plants or animals, biotic communities, geological or geographical formations of scientific or educational interest, tribal traditional knowledge, or open-space lands used solely for recreation and scenic enjoyment. To qualify, the property must be open to the general public (subject to reasonable restrictions for land needs) and owned and operated by a federally recognized Indian tribe or wholly owned subsidiary of a federally recognized Indian tribe. The exemption does not apply to property reserved for future development.

To dig deeper, visit the original article on the Thomson Reuters blog.

IRS Provides Details on Trump Account Elections, Pilot Contributions

Nageshwaran Gopal — Tue, 17 Mar 2026 11:27:11 GMT

Background

The One Big Beautiful Bill Act (OBBB) established the Trump account, a tax-advantaged account that can be opened on behalf of eligible individuals under age 18. A Trump account is a type of individual retirement account (IRA) with special rules regarding contributions, investments, distributions, and reporting that apply during the “growth period” – the period ending on December 31 of the calendar year in which the account beneficiary attains age 17.

The OBBB also provided for Treasury to make one-time pilot contributions of $1,000 to Trump accounts opened on behalf of U.S. citizen children born in 2025 – 2028. In addition to pilot contributions, Trump accounts can be funded via nonprofit and government qualified general contributions, employer contributions, qualified rollover contributions, and contributions from the accountholder’s parents or others.

To dig deeper, visit the original article on the Thomson Reuters blog.

As Boomers Retire, Pressure Mounts to Expose Employee Stock Buyback Obligations

Nageshwaran Gopal — Tue, 03 Mar 2026 15:50:12 GMT

A retirement plan that runs on company stock can turn into a company’s next liquidity crisis — and U.S. accounting rule-setters are weighing whether businesses should be forced to spell out the size and timing of those buyback bills.

The issue centers on employee stock ownership plans (ESOPs), a common way for private-company founders to sell their businesses to workers as they head for the exits. The pitch is easy to understand: employees build retirement wealth with company stock, and owners get a tax-advantaged path to succession. The catch can be harder to spot — and far more expensive.

To dig deeper, visit the original article on the Thomson Reuters blog.

HHS Issues Updated Model Notices of Privacy Practices and Announces Part 2 Enforcement Program

Nageshwaran Gopal — Tue, 03 Mar 2026 14:56:21 GMT

HHS has updated its model Notice of Privacy Practices (NPP) materials to help covered entities and business associates comply with the Part 2 related NPP requirements that became enforceable on February 16, 2026. The materials include a model HIPAA health plan NPP, model HIPAA provider NPP, and a Model Part 2 Patient Notice that federally assisted Part 2 programs can use to satisfy the Part 2 patient-notice obligation (and that Part 2 programs that are also HIPAA covered entities or business associates may combine with a HIPAA NPP). As background, Part 2 rules apply to federally assisted programs that provide substance use disorder (SUD) diagnosis, treatment, or referral (including programs providing education, prevention, training, treatment, rehabilitation, or research for SUD). Some of the rules also extend to anyone who receives Part 2 records, including HIPAA covered entities and business associates. HHS finalized major updates to the Part 2 rules in 2024, implementing statutory reforms enacted in the CARES Act to better align those rules with the HIPAA privacy rule (while retaining heightened protections for Part 2 records).

To dig deeper, visit the original article on the Thomson Reuters blog.

The benefits of integrating Foreign-Trade Zones (FTZs) into your supply chain

Nageshwaran Gopal — Mon, 16 Feb 2026 14:59:44 GMT

Highlights

FTZs enable duty deferral, reduced fees, and enhanced cash flow during tariff volatility.
Strategic FTZ use creates supply chain efficiencies and competitive advantages across industries.
Enhanced visibility and collaboration through FTZs support data-driven trade decision-making.

To dig deeper, visit the original article on the Thomson Reuters blog.

2026’s supply chain challenge: Confronting complexity and disruption in global trade

Nageshwaran Gopal — Mon, 16 Feb 2026 14:33:05 GMT

The 2026 Thomson Reuters Global Trade Report reveals that tariff volatility has fundamentally reshaped the trade landscape, with supply chain concerns doubling year-over-year as companies scramble to adapt to unprecedented regulatory complexity and cost pressures.

“Complexity” and “disruption” — those keywords now carry significantly more weight when describing global trade and supply chain management in 2026. But there’s a critical shift from previous years: the survey found that 72% of trade professionals identified U.S. tariff volatility as the most impactful regulatory change, a dramatic increase from just 41% the previous year.

To dig deeper, visit the original article on the Thomson Reuters blog.

Year-end planning: Retirement accounts, real estate, and proactive advisory

Nageshwaran Gopal — Mon, 02 Feb 2026 14:35:35 GMT

Transform your practice from reactive service provider to trusted advisor by mastering the art of proactive year-end planning.

Highlights

Year-end tax planning has evolved into a year-round advisory opportunity for practitioners.
Standardizing retirement account advice, especially HSA contributions, maximizes client tax benefits consistently.
Proactive advisory anticipates client needs rather than simply reacting to their questions.

To dig deeper, visit the original article on the Thomson Reuters blog.

Treasury Optimistic About Tax Season Despite Concerns Over Delays

Nageshwaran Gopal — Mon, 02 Feb 2026 14:34:38 GMT

2025 Report Card and Filing Season Concerns

In her preface to the National Taxpayer Advocate’s 2025 Annual Report to Congress, Erin Collins expressed significant concern about the IRS’ ability to serve taxpayers in 2026. While acknowledging the successes of the 2025 filing season, she cautioned that “entering 2026, the landscape is markedly different.”

The 2025 filing season was relatively smooth for most taxpayers, with the IRS processing over 165 million individual returns and 63% of filers receiving an average refund of $3,167. However, despite this, the report found that millions of taxpayers faced substantial delays.

To dig deeper, visit the original article on the Thomson Reuters blog.

Maryland Comptroller Alerts Taxpayers of Impact of OBBB on IRC Conformity

Nageshwaran Gopal — Mon, 19 Jan 2026 13:37:37 GMT

Maryland’s IRC Conformity Provision

Generally, Maryland income tax law conforms to federal income tax law except when the Maryland General Assembly has enacted decoupling legislation, or when automatically decoupled. Maryland law provides for automatic decoupling when: (1) an amendment to the IRC affects the determination of federal adjusted gross income (FAGI) or federal taxable income for the taxable year the amendment is enacted or any preceding taxable year; and (2) the amendment has a revenue impact of $5 million or more for the fiscal year that begins during the calendar year in which the amendment is enacted or any preceding fiscal year. The revenue impact is determined by the Maryland Bureau of Revenue Estimates (BRE) in a report issued 60 days after an amendment to the IRC.

To dig deeper, visit the original article on the Thomson Reuters blog.