Written by: James W. Standard, Jr., Esq.1)Mr. Standard is a partner at Hall Booth Smith and the leader of the firm’s Business Transactions practice group.  He holds an LL.M in taxation from New York University School of Law, a J.D. from Georgia State University College of Law, an M.B.A. and M. Fin. from the Robinson College of Business at Georgia State University, and a B.A. in political science from Washington University. I. Introduction. The 2017 Tax Cuts and Jobs Act (the “2017 Act“) significantly—albeit temporarily—revived the ability of businesses to take advantage of “bonus depreciation” on certain types of qualifying property. Instead of taking depreciation deductions on such assets over the course of the asset’s life (as such life is defined by the Internal Revenue Code (the “Code“), businesses instead may deduct 100% of the cost of the asset in the year in which the asset is placed in service. This…       Read More

This article discusses the new deduction available to non-corporate taxpayers for “qualified business income” earned from pass-through entities, such as S corporations and limited liability companies. As a general matter, “qualified business income” is income which is earned from a domestic business, which is not investment income, and which is not compensation for services provided by the taxpayer. Moreover, unless the taxpayer’s taxable income is below a certain amount, the income generally must be earned from a business whose primary offering is something other than the provision of services in order to qualify for the deduction. Once it is determined that the income meets the definition of “qualified business income”, the taxpayer generally may, subject to several important limitations, deduct 20% of this income from his adjusted gross income in determining his tax liability.

This article discusses the basic considerations which must be addressed in forming and operating a Section 501(c)(3) organization, primarily from a federal income tax perspective. It addresses the purposes for which 501(c)(3)s may be organized and operated, commercial activities of 501(c)(3)s and the unrelated business tax, the prohibition against private inurement, and the taxation of excess benefit transactions. The article discusses limitations on lobbying activities by charitable organizations and the prohibition on political campaign activities. Finally, the article addresses special considerations which apply to certain types of non-profits, including hospitals and educational organizations.

Hall Booth Smith, P.C. congratulates Partner James W. “Jim” Standard, Jr. on completing a Master of Laws (LLM) degree in Taxation from New York University School of Law, one of the most prestigious tax law programs in the nation. Standard’s studies focused on corporate and partnership taxation, the taxation of mergers and acquisitions, international transaction taxation, executive compensation taxation and tax-exempt organizations. Standard leads HBS’s transactional and business litigation practice groups, and his taxation expertise deepens the firm’s capabilities in these high-demand matters. HBS Partner Bradley R. Coppedge in our Columbus office also holds an LLM in tax. “Tax law is complex and constantly changing, and clients can rely on us to guide them through the nuance and intricacies with complete confidence that they are getting the best counsel,” said Standard, who has been with HBS for more than a decade. “It’s gratifying to bring an additional layer of knowledge…       Read More