Throughout this Guide, we address traditional tax planning concepts and set out alternatives should certain provisions not be reinstated, along with the impact of any new provisions.

What a year it has been for the Marcum Tax Department and the world in which we practice our profession! 2015 has been a year of significant legislation, tinkering with previously enacted legislation, landmark Supreme Court decisions, and State and Local developments affecting both our individual and entity tax clients. For Marcum, it has been a year of growth and development, as we expand our nationwide practice and our collective expertise. The changes impacting our tax clients have been profound and touch everyone differently. Some of the more important developments have been with respect to the Patient Protection and Affordable Care Act, State and Local nexus, market-based sourcing, samesex marriage, and potential easing of penalties which may be imposed against persons with undisclosed foreign financial accounts. All of these topics have been the subject of Marcum Tax Alerts and are covered, where appropriate, in this Year-End Tax Guide.

It is always my pleasure to welcome you to our annual tax retrospective. But this Guide is really more than a year-end review. The information and recommendations offered are truly a roadmap for tax planning year-round. The more familiar our clients and friends become with the opportunities for tax savings throughout the year, the greater the opportunity for effective tax planning. In 2016 especially, the rules and planning concepts addressed must be considered in light of the quadrennial presidential political season.

The end of the year is an important time for business owners to evaluate the current and future status of operations and the associated tax implications. Businesses must understand the tax law changes that impact their industries and ultimately, their profitability.
By the end of 2015, tax legislation that retroactively extends some of the tax provisions that expired in 2014 may be enacted. More than 50 federal tax provisions expired in 2014, and most of those are the same provisions that expired in 2013 before legislation was enacted in December of 2014 to retroactively extend them for one year.
On June 25, 2015 the Supreme Court ruled in a seminal case upholding the legality of health insurance subsidies under the Patient Protection and Affordable Care Act (ACA). King vs. Burwell challenged the subsidies issued by the IRS on behalf of states that used the federal health insurance exchange, and thus did not set up their own exchanges. The Supreme Court ruled the subsidies to be legal
Major changes in the tax law generally are not enacted when a President is in his last year in office, or when the President and the Congressional majority belong to opposing parties. However, one can never be certain what Congress will do this session.
A number of developments occurred in 2015, relating to the Patient Protection and Affordable Care Act (ACA)
As more companies use technology to improve products and increase efficiencies, the importance of reviewing costs for eligibility for the Research and Development tax credit becomes more critical.
An investment in a business or in real estate is often made via a pass-through entity. A business interest is often held through an S corporation, and real estate is often held in a limited liability company taxed as a partnership, or in a partnership.
Business taxpayers were required to adopt the new Repair and Capitalization Rules contained in final regulations for their 2014 tax year filings. The professional tax and business communities spent a good portion of 2015 grappling with how to satisfy the requirements of these new rules.
For taxable years beginning on or after January 1, 2014, California law conforms, as modified, to federal provisions for charitable remainder annuity trusts and charitable remainder unitrusts by providing that the trust’s income shall be tax-exempt, with the exception of any unrelated business taxable income.
With the US Supreme Court’s historic June ruling in Obergefell v Hodges, establishing same-sex marriage as a legal right in all 50 states, 2015 is a banner year for LGBT taxpayers.
Federal and State tax laws offer credits or deductions to assist taxpayers in meeting the increasing cost of a college education. A review of eligibility for such credits and deductions should be part of any family tax planning. Opportunities are often overlooked. Each individual’s particular facts and circumstances should be considered.
Identity theft has become an unfortunate new reality in the digital world. A few common sense steps can help prevent identity theft and minimize the damage in the event you become a victim.
As technology becomes ever-more savvy, so does the technology resources of thieves an scammers. Each day we hear about some sort of identity theft, data breaches or a new tax scam.
The American Taxpayer Relief Act of 2012 (“ATRA”) brought stability to the estate and gift tax arena by providing for a maximum Federal estate tax rate of 40% with an inflation-adjusted $5 million exclusion.
Many taxpayers search intensely at year-end for tax-savvy strategies to mitigate or reduce their tax burdens, but why should that only apply to individuals, trusts or for-profits?
The U.S. gift tax rules apply to gratuitous transfers by a U.S. person or foreign person domiciled in he United States, regardless of the location of the recipient on the money or property transferred.
Since the Employee Retirement Income and Security Act (ERISA) was enacted in 1974, the government has used tax incentives to encourage Americans to save for retirement. Unfortunately, many Americans don’t put much effort into planning for retirement, and don’t take advantage of the tax incentives offered to them.
Since the decline in the economy stemming from the Great Recession, there has been continuous Congressional opposition to raising taxes. As a result, the Internal Revenue Service is left in the position of trying to increase revenue for a government in need of funding without a corresponding increase in tax rates.
Defending transfer pricing policies for multinational entities (“MNE’s”) is a high priority in an environment where countries compete to collect their fair share of global income tax. Over 70 countries have adopted transfer pricing documentation and/or penalty rules as of 2014. Documentation in accordance with multiple local country tax regulations creates a complex task for MNE’s.
Just what you need, right? One more time consuming task to be taken care of between now and the end of the year. But taking a little time out from holiday chores to make some strategic saving and investing decisions before December 31 can affect not only your long-term ability to meet your financial goals, but also the amount of taxes you'll owe next April.