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The 2017 Tax Act And U.S. Real Estate: The Foreign Investor And Unusually Low Tax Rates

The boom in U.S. real estate caused by foreign investors is about to get bigger as a result of greatly reduced U.S. income taxes for nonresident aliens and foreign corporations.

Because of the new 2017 Tax Act, foreign investors could receive a 40% reduction in the U.S. income tax of their gains and income from their real estate investments. For those foreign investors who already were invested in U.S. real estate, their after-tax returns could now be 40% more valuable without their raising a finger. Read more

County Auditors Seek Legislation To Increase Real Estate Conveyance Fee Tax Collections

County Auditors in Ohio are permitted to collect a fee for the administration related to the transfer of deeds.  There are two elements to the “real estate conveyance fee” (which is also commonly referred to as the “real estate transfer tax”).  R.C. 319.54 levies a fee that is measured as 10 cents of every 100 dollars of the value of the real property transferred.  Counties, under R.C. 322.02, are also given the authority to levy an additional real estate transfer tax of up to 30 cents per one hundred dollars of value (grand total of maximum fee/tax of 40 cents of every 100 dollars of value of real property transferred; or, denoted as a decimal 0.004).  Read more

NASCAR Holdings V. Testa: A Yellow Flag For Tax Practitioners And Taxpayers

In NASCAR Holdings, Inc. v. Testa, decided December 21, 2017, the Ohio Supreme Court held that the filing of a notice of appeal with the Ohio Board of Tax Appeals (“BTA”) by an attorney not licensed in Ohio did not deprive the BTA of jurisdiction over the appeal.  The Court followed the plurality opinion in Jemo Assoc., Inc. v. Lindley, 64 Ohio St.2d 365 (1980), which reversed the BTA’s dismissal of the appeal because it was filed by a corporate accountant.  Jemo stated that the proper inquiry in determining whether the notice of appeal invoked the BTA’s jurisdiction is whether the person who filed the notice of appeal was authorized by the taxpayer to file the appeal. Read more

Is Your Cryptocurrency IRS Approved?

Cryptocurrencies such as Bitcoin are becoming more popular as a form of payment and as investment. However, there has been little attention paid to how this virtual currency will be treated by the IRS until now. In fact, the IRS is taking a much closer look and has established some tax guidelines.

According to an article published in accountingtoday.com, “For federal tax purposes, virtual currency is treated as property and not currency.” They add, “The fair market value of the virtual currency on the date of receipt determines the taxpayer’s basis.”

Some Businesses Are Actually Paying Employee Wages In Virtual Currency Instead Of U.S. Dollars Read more