U.S. law firms in U.K. face a risk of new taxes; revolutionary change in U.K. law may increase compliance costs
Article Abstract:
Changes in UK tax law may temporarily raise compliance costs for US firms with offices there by requiring a UK tax return for each partner worldwide, and by complicating the computation of credit for UK taxes paid. The changes end joint-and-several liability for members in a partnership, reconcile the treatment of profits and losses by ending the 'preceding year' method of tax assessment, unite payment for all tax liabilities, and permit self-assessment of taxes due. For most firms these changes take effect in 1997.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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REITs that merge can avoid taxes: a well-planned consolidation of real estate investment trusts - an industry trend - may be accomplished on a tax-free basis
Article Abstract:
Real-estate investment trusts, or REITs, will probably expand significantly in the next few years through mergers and consolidation, which raises special tax issues. Umbrella partnership REITs, or UPREITs, pose particular problems and demand careful planning. The merger of two UPREITs can be tax-free under Sec 368(a)(1)(A) of the Internal Revenue Code if the merged REIT's operating partnership is the survivor and the acquiring REIT's operating partnership terminates. Related tax issues are further discussed.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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Deducting clients' costs will not fly with the IRS
Article Abstract:
A law firm can deduct travel and entertainment costs made on its own behalf but those made for a client fall under stricter rules. Law firms should capitalize disbursements on the clients' behalf unless the client receivable for that expense is worthless, the case closes without recovery, or the IRS can be persuaded that the receivable was forgiven to pursue a business objective. Deductions for travel only apply to temporary work away from home, meaning it is reasonably expected to last less than one year.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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