Klug Counsel PLLC, Author at Klug Counsel PLLC

The Importance of Not Overblocking for UBIT

Posted on February 6, 2023 (February 7, 2023)

Taxes play an important role in the structure of a fund. There are various categories of investors that have different tax implications which will impact the structure of a tax efficient fund. One such group of investors are tax-exempt investors and the planning around Unrelated Business Income Tax (“UBIT”). A common planning strategy for UBIT is placing a blocker corporation in the structure. If the blocker corporation blocks more than the UBIT, the tax-exempt investors will have their investment earnings reduced unnecessarily. […]

IRS Delays Implementation of $600 Threshold for Third-Party Payment platforms’ Forms 1099-K

Posted on January 4, 2023 (February 28, 2023)

For calendar years beginning after December 31, 2022, the third-party payment organizations are required to report payments in settlement of third-party network transactions with any participating payee that exceed a minimum threshold of $600 in aggregate payments, regardless of the number of such transactions. […]

Klug Counsel PLLC in 2022

Posted on December 27, 2022 (January 6, 2023)

We hope you and your family are healthy, safe, and enjoying the holiday season to end 2022. We would like to take this opportunity to update you on exciting developments at Klug Counsel PLLC. We are excited about new members and practice areas that have been added to the firm and the creation of a related entity that will allow us to better serve our clients with accounting and finance support. […]

Estate and Gift Tax Exemption Amount to Significantly Increase with Inflation

Posted on November 22, 2022 (December 27, 2022)

Prepared by Gina Lee, Senior Associate at Klug Counsel Every year, the estate and gift tax “basic exclusion amount” (commonly known as the “estate and gift tax exemption amount”) is adjusted for inflation. The Tax Cuts and Jobs Act passed in 2017 doubled the estate and gift tax exemption amount from $5 million to $10 […]

IRS will Prioritize Enforcement Under $80B Funding: Large Business and International Division

Posted on November 16, 2022 (November 21, 2022)

Prepared by Arturo Meza, Foreign Associate at Klug Counsel On August 16, 2022, President Biden signed the Inflation Reduction Act into law. As part of the significant changes made by this legislation, the IRS will receive a budget increase of nearly $80 billion over the next ten years to improve four areas: enforcement, operations support, […]

IRC §754 Election: Partner Signature No Longer Required for Partnership Basis Election

Posted on August 11, 2022 (November 21, 2022)

Prepared by Gina Lee, Senior Associate at Klug Counsel Treasury and the Internal Revenue Service (“IRS”) have finalized regulations that eliminate the requirement that an Internal Revenue Code (“IRC”) 754 election statement to adjust the basis of partnership property be signed by one of the partners of the partnership to be valid. To understand the […]

Crypto Brokers and Exchanges Informational Reporting Likely Delayed

Posted on July 27, 2022 (November 16, 2022)

The Treasury Department (“Treasury”) and the Internal Revenue Service (“IRS”) are likely to delay a January date for crypto brokers and exchanges to begin tracking and reporting data such as customers’ capital gains and losses. The move will delay when the IRS receives the same kind of data from crypto transactions as it receives for […]

Deducting Cryptocurrency Losses

Posted on July 13, 2022 (November 16, 2022)

Many investors in cryptocurrencies have seen their investments lose significant value in recent months. U.S. taxpayers who have losses from their digital asset investments or have had them stolen can deduct losses. For individual taxpayers, typically the loss from the sale of crypto assets will result in a capital loss. Capital losses can offset capital […]

Bitcoin Miners Experience Significant Losses Over Declining Market Prices

Posted on June 30, 2022 (November 16, 2022)

Prepared by Chris Klug, founder of Klug Counsel The recent decline in market prices for Bitcoin has taken a toll on miners, who have seen their profits slashed. According to data from BitInfoCharts, the average daily revenue for a Bitcoin miner has declined from around $13,000 at the beginning of 2018 to just $4,000 by […]

IRS on Digital Assets

Posted on June 13, 2022 (November 16, 2022)

Prepared by Gina Lee, Senior Associate at Klug Counsel The Treasury Department is looking to require information reporting on digital asset transactions similar to other financial instruments, such as stocks and bonds. In an April 7 speech at American University outlining the Treasury’s digital asset policy, Treasury Secretary Janet Yellen said: that “appropriate guardrails” are […]

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