Shareholder Evans Elected Chair of NJSBA Taxation Section
K&D Shareholder James B. Evans, Jr. was recently elected Chair of the Taxation Law Section of the New Jersey State Bar Association (NJSBA). The Taxation Law Section studies and disseminates information on developments in federal and state tax law and provides a forum for discussion of these tax issues among attorneys who…
Henkel to Serve Another Term: PEPC Board of Trustees
On May 7 2015, K&D Shareholder, Glenn A. Henkel was sworn into another three year term as a member of the Board of Trustees of the Philadelphia Estate Planning Council (PEPC), expiring August 31, 2018. The Philadelphia Estate Planning Council is the largest estate planning council in the country. Mr Henkel will…
Kulzer & DiPadova 2015 Super Lawyers
Five attorneys at Kulzer & DiPadova were recognized by New Jersey SuperLawyers Magazine for 2015. Kulzer & DiPadova attorneys recognized as New Jersey Super Lawyers for 2015: Arthur A. DiPadova and Glenn A. Henkel were named in the area of Estate Planning & Probate James B. Evans, Jr. in the area of Taxation Robert H. Williams in…
Reasonable Compensation for Personal Service Corporations
In Midwest Eye Center, S.C. v. Commissioner, T.C. Memo. 2015-53, the Tax Court held that $1 million of a $2 million bonus paid to the physician sole shareholder of a personal service C corporation was a non-deductible dividend distribution. Factual Background. The taxpayer, Midwest Eye Center, Inc. (“Midwest”), was a C corporation…
In re Andolino: New Jersey Inherited IRAs Are Excluded from Bankruptcy Estate
An “inherited IRA” is an individual retirement account (“IRA”) that is left to a beneficiary upon the IRA owner’s death. If the IRA owner started receiving required minimum distributions (RMDs) at the time of his or her death, the beneficiary must continue to receive distributions from the inherited IRA in…
FBAR Filing: When is it Required?
One common refrain from taxpayers who hold foreign accounts and learn of the need to file an FBAR (FinCEN Report 114) years after the account was opened is that they never knew the FBAR existed. Their initial knowledge can come from many sources: a newspaper report, an online article, an offhand question…
Interesting Developments Concerning Income Taxation of Resident and Nonresident Trusts
The Pennsylvania Department of Revenue recently changed its instructions for filing of an income tax return for trusts and estates. While many people are aware that an individual must file Form 1040, a trust or estate will typically file IRS Form 1041. On the state level, corollary returns are prepared for…
Deadline Approaches for Local Real Property Tax Appeals
Local real property taxes in New Jersey are assessed according to value. A municipal assessor makes his or her determination of real property value as of each October 1. The tax assessor must notify each taxpayer of the current assessment and preceding year’s taxes by mail prior to February 1st…
Glenn A. Henkel Receives Distinguished Service Award
K&D shareholder, Glenn A. Henkel is this year’s award recipient of the Dorothy G. Black Distinguished Service Award, an award given by the New Jersey State Bar Association (NJSBA), Real Property Trust and Estate Law Section. This award recognizes distinguished service to the Trust and Estate part of the Real Property, Trust…
IRS Disagrees with Tax Court on Partner Excluding Debt Cancellation Income
The IRS has recently announced a non-acquiescence in four Tax Court cases involving the cancellation of partnership indebtedness. Generally, the discharge of indebtedness gives rise to gross income to the obligor. However, Code Section 108 provides a number of exceptions. Section 108(a)(1)(A) provides an exclusion if the cancellation of indebtedness…