Welcome to the latest issue of New York Tax Insights. In this issue we cover:
- A Third Department decision denying deductibility of insurance premiums paid to a captive insurance company, upholding the decision of the New York State Tax Appeals Tribunal that the premiums were not deductible because they did not qualify as valid insurance premiums under federal income tax law (on page 1).
- A First Department decision confirming a New York City Tax Appeals Tribunal decision upholding the Tribunal's narrow interpretation of a provision in the New York City real property transfer tax law that affords preferential tax treatment to qualifying transfers to newly-formed real estate investment trusts (“REITs”). Unless the decision is reversed by the Court of Appeals, or remedial legislation is enacted, some REITs may be subject to significant (and unexpected) transfer tax exposure (on page 3).
- A New York State ALJ determination that a yacht club’s charges for dock rentals to its members were taxable “dues” paid to a social or athletic club for sales tax purposes rather than nontaxable charges for the leasing or rental of real property. However, the docks at issue were permanent and immovable structures affixed to real property owned by the yacht club, and charges for their use were arguably charges for the rental or lease of real property, which is not subject to sales tax (on page 4).
And more (on page 6).
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