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It has been a couple of months since Tony Nitti did his last podcast but The Nitti Gritty is officially back! Listen to Tony Nitti, Withum Partner and writer for Forbes.com, discuss where we stand with tax reform. Tony will also cover the below court cases that took place over the last month:

  1. Mudrich vs. Commissioner TC Memo 2017-101 (alimony)
  2. Anderson vs. Commissioner TC Summary Opinion 2017-17 (deductible moving expenses)
  3. Austin vs. Commissioner TC Memo 2017-69 (business purpose and non-tax profit motive requirements of the economic substance doctrine)

Continue listening at Withum.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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It is no secret that Senate Republicans are at odds with respect to the repeal of the Affordable Care Act (“ACA”). The American Health Care Act (“AHCA”), was passed on May 4, 2017. The Senate Republican version of the AHCA, The Better Care Reconciliation Act (“BCRA”), was released in late June. The vote on the BCRA was originally set to take place the week of June 26th but was postponed to allow conservative and moderate Republicans time to resolve differences.

One major point of contention is the proposed three-year phase-out of Medicaid expansion. There are certain Republicans that would like to extend the transition beyond three years.

In addition, one Senate Republican aide confirmed that the 3.8% net investment income tax and the .9% additional Medicare surtax will not be repealed in the current version of the bill in which the Senate Republicans are working on.

There are a lot of moving parts to this as we have seen since the new Administration took over. Republican supporters of the ACA repeal bill are hoping to have a final version of the bill by tomorrow and hold a vote next week.

For additional details about the American Health Care Act progress and status, read American Health Care Act Pulled From the Floor, Amendment to the American Health Care Act, and MacArthur Amendment to the American Health Care Act Introduced.

To learn more, visit Withum.com

Authored by Tony Panico, Withum Partner

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What a rip-off. This was supposed to be my fifteen minutes. The summer of 2017 was when the discussion surrounding tax reform was going to dominate the airwaves, newswires and internet, with every TV station, publication and web site coming to me for my opinion on the pros and cons of potential changes. And I was going to shine.

But none of that materialized. Instead, tax reform has been largely forgotten, as the legislative progress has been stopped in its tracks by the never-ending, irreconcilable argument over Obamacare and, more recently, some potential light treason.

But yesterday, the veritable eggheads at the Tax Policy Center snapped me out of my summer doldrums and brought tax policy back to the forefront of the social consciousness by publishing its analysis of President Trump’s most recent tax plan. And it’s nothing if not revealing.

Continue reading on Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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On tonight’s episode of Family Fraud, we’ve got two cunning clans eager to prove who has the most flagrant disregard for the tax law! Let’s meet our contestants:

Say hello to the Paynes! Hailing from Florida, the Paynes thought nothing of claiming $90,000 in non-cash charitable contributions in 2011, despite sporting an adjusted gross income of $180,000! Among those contributions were nearly $40,000 in gifts of furniture, a fact made all the more remarkable by the fact that the Paynes lived in a 1,600 square foot home with a one-car garage!

Next let’s welcome the Ohdes! This West Virginia family claimed $142,000 in non-cash charitable contributions in 2011, alleging that they made over 20,000 separate gifts to one local Goodwill organization! In addition to 3,500 items of clothing, included among the donations were 36 lamps, 22 bookshelves, 20 desks, and 16 bed frames. And if you think it’s unrealistic that one family could accumulate that much junk, well, then you’ve never driven through West Virginia.

Who are we kidding, with both families equally willing to throw conventional wisdom and common sense to the wind in hopes of a big tax break, everyone’s a winner. Gary, tell them what they’ve won!

Both families will enjoy an all-expenses paid (by them) trip to Tax Court, where the IRS will teach them the finer points of the substantiation requirements for charitable contribution deductions under Section 170! And they won’t be leaving there empty handed…both the Paynes and Ohdes will exit the court with substantial underpayments, penalties and interest!

Continue reading on Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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Moments after the Atlanta Hawks made Alpha Kaba the final pick in the 2017 NBA Draft, the attention of the basketball world turned to what promises to be a frenzied free-agency period. Beginning July 1st, a bevy of big-name players hit the open market, including Chris Paul, Blake Griffin, Gordon Hayward, and the tattered remains of Derrick Rose.

For these free agents, there is much to consider in choosing their next team. Who offers the most established leadership? (Miami) The best weather? (Miami) The most accessible network of HGH dealers? (Miami)

Then, of course, there’s the little matter of money, and when it comes to extracting the most coin possible out of a contract, it typically behooves a free agent to do nothing at all, and simply re-up with their previous employer.

That’s because the NBA’s collective bargaining agreement affords advantages to a team in re-signing it’s own free agents, provided the team has so-called “Larry Bird rights” in the player. Generally, this requires the player to have been with the team for three consecutive seasons, though there are a host of other ways a team can obtain these rights.

Continue reading on Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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I am not what one would describe as a “talented” man, but I do possess one time-tested, undeniable skill: Within mere minutes of arriving at a wedding, I can tell you with absolute certainty whether the couple will be divorced within three years.

My record is impeccable, but to be honest, it’s not all that difficult. Here are a couple of helpful tips:

  • If I learn that the bride insisted that she and her fiancé have a joint bachelor/bachelorette party, they ain’t making it.
  • If the best man spent the thirty minutes prior to the start of the ceremony repeating to the groom, “just leave, and I’ll cover for you,” that’s probably not a great sign.
  • If the bride, despite having no discernable singing ability, insists on sitting her new husband in a chair and belting out her favorite song, she’s probably far more interested in getting married than being married, and when the glow of the wedding wears off….look out.

Even those who survive beyond three years aren’t out of the woods, of course; after all, being married is hard. If there’s any advice I can offer young couples contemplating tying the knot, it’s this: the saying goes that life is too short. Well, I’ve got news for you: if you marry the wrong person, life is looong. You’ll wake up every morning,  look to the other side of the bed, and find yourself wishing that the whole thing would just speed up and get over with already.

Continue reading on Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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Today is my son’s eighth birthday, and naturally, I spent the morning thinking back to the countless ways he’s enriched my life.

There was that first dependency exemption in 2009. And then that much-needed dependent care credit in 2011. And who can forget the child tax credit of 2014? Great times, all.

In total, that kid has saved me over $10,000 in taxes, and all it’s cost me in return is a few hundred doughnuts and the occasional Lego set. Not a bad deal.

If you’re a little jealous, don’t be; YOU can have a sweet little tax break of your own, and if you plan accordingly, unlike me you can have one that doesn’t require all that annoying parenting.

But be warned, claiming a dependent — and all the ancillary tax benefits that come with it, from the $4,050 deduction to the head-of-household filing status to the earned income, child care, and dependent care credits — is not as easy as it sounds, and certainly not as easy as it should be. Heck, if it were up to me, you’d get a dependency exemption for every kid under a certain age, every parent OVER a certain age, and anyone who lives in your house but doesn’t pull their weight when the bills come due.

Continue reading on Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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