SeeSALT BlogIn Matter of Petosa, the New York Tax Tribunal forced a state tax S corporation election on a corporation doing business in New York because its gain from the sale of corporate goodwill caused gain and income from investment property to exceed 50% of the total income earned by the corporation in the year of the sale. Not only did this holding result in additional New York tax to be payable, the shareholder level tax was not deductible for federal income tax purposes (whereas the corporate level tax would have been deductible). In “SALT in the Wound: New York Imposes Shareholder-Level Tax on Corporate Asset Sale,” colleagues Mark Leeds and Jack Camillo analyze the case and explain why it provides a cautionary tale for corporate asset sales of companies doing business in New York.
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New York Imposes Shareholder-Level Tax on Corporate Asset Sale
