The Tax Exchange
Tax discussions for the business leader
Recently, the Ohio Board of Tax Appeals issued a decision addressing the situsing of sales under the state’s Commercial Activity Tax (CAT). In Greenscapes Home and Garden Products, Inc. v. Testa, the board found that an “ultimate destination” test is the key inquiry in determining whether sales of tangible personal property should be sitused to the state.
There are substantial tax differences between a redemption (a partner is redeemed out by the partnership) and a sale of a partnership interest.
On July 28, 2017, the Senate voted against a Republican health care bill known as the Health Care Freedom Act. The Health Care Freedom Act was the Republican’s latest draft of legislation to modify the Affordable Care Act (ACA).
The Tax Court recently ruled that the redemption of a foreign person’s interest in a U.S. partnership was neither U.S. source income, nor income effectively connected with a trade or business. As a result, the taxpayer was largely not liable for U.S. tax.
In what Mayor Ed Murray has called a “new formula for fairness” and a challenge to the state’s “antiquated and unsustainable tax structure,” Seattle recently became the first local jurisdiction in Washington state to pass an income tax when it was approved by city council and signed by the mayor in mid-July.
Fall is around the corner and Congress’ progress on tax reform leaves much to be desired. Earlier in the year we were hopeful for comprehensive tax reform in 2017, now we are cautiously optimistic for even a minor reform package to come by the end of 2018.