Tax Partner, Not True Partner: The Limits of K-1s in Business Divorce Litigation
The Schedule K-1 is a tax form that pass-through entities use to report each owner’s share of the entity’s income, deductions, credits, and other tax items. It is also one of the great rock stars of business divorce litigation. K-1s (or their conspicuous absence) play a prominent role in virtually every litigated dispute over ownership status.
Beyond the Pitch Deck: A Legal Guide to Investor-Side Due Diligence
Having counseled investors through dozens of venture transactions in New York and beyond, I can say with confidence that due diligence isn’t a checkbox exercise. It’s the process of stress-testing every material assertion made during the fundraising process and, just as importantly, surfacing the risks that never made it into the deck.
Press Your Luck, Pay the Bill: When Refusing to Drop a Doomed Claim Becomes Sanctionable
When does a litigant’s persistence (and perhaps, stubbornness) cross the line into sanctionable conduct? That is the question at the heart of Cortlandt St. Recovery Corp. v. TPG Capital Management, L.P., et al. (Index 651176/2017), a Commercial Division decision by Justice Robert Reed that should give pause to any litigant tempted to keep fighting after the writing is on the wall. In the decision, Justice Reed admonished a plaintiff that continued to litigate claims that had already been rejected in a closely related action arising from the same underlying deal and theory of liability. The decision offers a cautionary lesson on the continuing duty to evaluate the viability of one’s claims as litigation unfolds.
Adduced! Ensuring the Record in CPLR Article 78 Proceedings
A special proceeding pursuant to New York Civil Practice Law and Rules (“CPLR”) Article 78, specifically Section 7803(3), is the vehicle for challenging determinations of a body or officer. Section 7803(3) sets forth the all-too-familiar question raised: whether the determination was arbitrary and capricious, an abuse of discretion, or contrary to law. In the land use context, these challenges are commonly brought against municipal zoning board and planning board determinations. The record created during proceedings before the board, and produced to the Court, is critical for how the determination will be reviewed.
IRS Hands “Trump Account” Donors a Gift Tax Break: A Look at Rev. Proc. 2026-25
If you have been wondering whether contributing to a child's new "Trump account" could saddle you with a gift tax return, the IRS just delivered welcome news. In Rev. Proc. 2026-25, the Treasury Department and the IRS established a transfer tax safe harbor for individual donors who fund these accounts, treating qualifying contributions as completed gifts that are not gifts of future interests and to which the annual per-donee gift tax exclusion applies. The practical payoff: donors within the safe harbor will not have to file a gift tax return to report those contributions.
Explore how our team navigates complex landscapes, providing thoughtful solutions and demonstrating our commitment to excellence in every case.
Latest Blogs
Stay informed and ahead in the legal landscape with insights where fresh perspectives meet real-world relevance.
