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Our business blog focuses on issues affecting Virginia, D.C. and Maryland business owners as well as those in other jurisdictions throughout the country. We provide timely insight and commentary on federal and state rules and how they affect you. If you are interested in having us cover a specific topic, please let us know.

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July 26, 2019
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Topics Vlog
Tags Equity

Raighne Delaney continues his series on Equity. In part two, he shares insights into the substance of equity - what equity can do.

July 18, 2019
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Topics Vlog
Tags Equity

Raighne Delaney shares his insights into "What is Equity" - it's history, procedure within the law, and who it applies to.

Timing IS Everything When Investing in Qualified Opportunity Funds

We have now received our second round of regulations interpreting Section 1400z-2, also known as the investment in Opportunity Zones section of the Internal Revenue Code. In our previous posts, we have provided background and tracked important developments with the program. Now and in future posts, we will highlight finer points that stakeholders should be aware of when considering the program.

June 6, 2019
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Joe Meadows, Kurtis Minder and Nikolay Danev
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Topics Litigation
Facial Recognition: Security Tool or Threat Vector?

Security systems have evolved quite a bit since the first locks and keys dating back to 4000 BC. These days it’s keycards, secret passwords, fingerprint logins, and two-factor authentication.

Enter facial recognition as the latest, cutting-edge technology in the security game. Like fingerprint logins, facial recognition can be used to access electronic security systems.

Win for Online Speech Sustained: U.S. Supreme Court Declines to Hear Hassell v. Yelp

Back in July, we provided our five takeaways from the California Supreme Court’s decision in Hassell v. Bird that Section 230 of the Communications Decency Act of 1996 (“Section 230”), which confers defamation immunity upon internet sites that “publish” content of another, protected Yelp from a take-down order directing it to remove defamatory content. After the decision, Hassell asked the nation’s highest Court to hear the case. Yesterday, the U.S. Supreme Court declined to do so, leaving lower courts free to determine the scope of Section 230 immunity in connection with take-down orders.

The First Round of Opportunity Zone Fund Regulations Are Out!

Some of the highlights of the first round of proposed regulations released on October 19, 2018 in conjunction with Revenue Ruling 2018-29 are as follows:

  • Capital Gains: The regulations take the position that only capital gains for federal income tax purposes are eligible to be invested in a Qualified Opportunity Fund (QOF). Thus, gains such as depreciation recapture are not eligible, while certain Section 1231 gains are likely to be eligible.
  • Retention of Rate: Capital gains invested in a QOF will retain the rate at which the gains were to be taxed if not for an investment in a QOF. This means that when the deferral of the initial tax on gains ends (earlier of sale out of a QOF or December 31, 2026), the rate of tax on the gains will be the same at deferral, i.e. short-term capital gains invested in a QOF will eventually be subject to the short term capital gain rate when deferral ends.

Negative online reviews, social media trolls, defamation claims, non-disparagement agreements - these topics and other legal and PR related concerns were discussed at our first Internet Defamation briefing.

Opportunity Funds are Knocking: Let them in and Learn How They Can Work for You: Q & A

This is the next post in a series of articles diving into the new “Opportunity Fund” program. In previous posts, we described the general framework for the new Opportunity Fund program, the tax benefits to taxpayers who invest in Opportunity Funds, and how the funds work. Now, we will answer some of the more common questions we have been receiving regarding the program.

Q: How does an Opportunity Fund become eligible to be an Opportunity Fund?

A: It is pretty simple. There are two general requirements.  First, an Opportunity Fund must be organized for the purpose of investing in Qualified Opportunity Zone Property.

Opportunity Funds are Knocking: Let them in and Learn How They Can Work for You: How the Funds Work

This is the third post in a series of articles diving into the new “Opportunity Fund” program. In our first post, we described the general framework for the new Opportunity Fund program which you can find here. In the second post, we discussed the tax benefits to taxpayers who invest in Opportunity Funds. Now, let’s look at the funds themselves.

What are Qualified Opportunity Funds?

Qualified Opportunity Funds are investment conduits that deploy equity capital to specific types of property which are located in Qualified Opportunity Zones. Sounds simple enough! Let’s unpack this and keep track of the definitions.

Opportunity Funds are Knocking: Let them in and Learn How They Can Work for You - What Are the Tax Incentives and What Investors Need to Know

This is the second post in a series of articles wherein we will dive into the new “Opportunity Fund” program. In our first post, we described the general framework for the new Opportunity Fund program which you can find here

There are three tax benefits that investors in an Opportunity Fund can take advantage of, (i) deferral of gain from the sale of property, (ii) partial forgiveness of this gain, and most importantly, (iii) tax-free appreciation in the investment in an Opportunity Fund.

Gain Deferral

The first thing a taxpayer must do to take advantage of the first tax benefit is to invest the gain from the sale of property into an Opportunity Fund within 180 days of the sale.