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Yesterday, the Treasury Department released Final Regulations (TD 9644) that resolve significant ambiguity regarding the applicability of a new 3.8% tax to certain rental income known as recharacterized or self-rental income. Recipients of rental income, including those who own rental property indirectly through a “flow-through” entity (LLC, partnership or S Corporation) who are also involved with the operations of the tenant should be familiar with the new rules.

The month of December marks a critical time on the calendar of tax advisors looking to help clients with final year-end planning recommendations. Each year, new variables present themselves as hurdles to our clients’ ability to understand and implement these recommendations. Currently, clients are increasingly asking us what impact the new 3.8% net investment income tax will have on their tax liability, and for possible solutions.

In mid-September, the American Institute of Certified Public Accountants (AICPA) held its annual National Conference on Banks and Savings Institutions in National Harbor, Maryland. With more than 1,000 attendees, 45 sessions and 69 speakers, the conference delivered comprehensive discussions on current economic, accounting, regulatory, auditing and financial reporting issues.

As 2013 draws to a close, financial institutions should consider a number of tax issues in order to ensure compliance with tax laws and minimize 2013 tax liability where possible.  The following is a summary of key issues that may be relevant to your business.

An Employee Stock Ownership Plan (ESOP) is an entity that allows for the ownership of a corporation by its own employees. There are many reasons for the use of an ESOP, including tax savings by the underlying corporation and motivation of its employees through “skin in the game.”

In many countries, U.S. citizens are not allowed to directly own real property. For this reason, an individual often creates a foreign entity, such as a trust, corporation, or partnership to own the property on his or her behalf.

In our September article, Mandatory Canadian Tax Withholding: Are You in Compliance?, we discussed Regulation 105, the rule requiring withholding and remittance of tax on payments made to Canadian non-residents who provide services in Canada.  Rule 105 applies to payments to non-resident individual contractors, corporations, partnerships, joint ventures and LLCs.