Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Joseph Lipari

It is common for business entities (corporations, limited liability companies, or otherwise) to be organized solely for the purpose of owning a single piece of real property. Unsurprisingly, it is also common for such entities to cease active operations after the sale of such property. What may not occur to many taxpayers is that the cessation of business operations may result in an unforeseen acceleration of taxes. In 1018 Morris Park Avenue Realty, TAT(E)14-4(GC) (N.Y.C. Tax App. Trib., Aug. 7, 2017), the New York City Tax Appeals Tribunal ruled that a corporation must recognize all gain derived from an installment sale in the year in which the corporation ceased doing business in the City. Although this result may be harsh since the corporation may not have the resources necessary to pay the accelerated tax liability, the problem likely results from overly aggressive tax planning.

This premium content is locked for
New York Law Journal subscribers only.

  • Subscribe now to enjoy unlimited access to New York Law Journal content,
  • 5 free articles* across the ALM Network every 30 days,
  • Exclusive access to other free ALM publications
  • And exclusive discounts on ALM events and publications.

*May exclude premium content
Already have an account?
Interested in customizing your subscription with Law.com All Access?
Contact our Sales Professionals at 1-855-808-4530 or send an email to groupsales@alm.com to learn more.

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2018 ALM Media Properties, LLC. All Rights Reserved.