In their latest New York Law Journal column, Roberts & Holland partners Ezra Dyckman and Aaron Gaynor examine IRS Notice 2026-40, which provides safe harbors designed to preserve existing qualifying investments and permit new qualifying investments in existing QOZs even after those zones' designations expire.
In their latest article for the New York Law Journal, Elliot Pisem and David E. Kahen discuss a recent decision of the Court of Appeals for the 7th Circuit that addresses the potential for the “claim of right” doctrine to exclude amounts from a corporation's income.
The 2026 New York State Budget Legislation, which was recently passed and signed into law by Governor Kathy Hochul, enacts a new annual surcharge (the “Surcharge”) on residences valued at $5,000,000 or more that are not occupied as primary residences.
Due to numerous factors, including the speed at which the bill was drafted, there are many surprising features in the law and many unanswered questions. Although beyond the scope of this mailing, it is expected that some taxpayers will attempt to have the statute declared invalid as unconstitutional or on other possible theories.
The Surcharge goes into effect for the upcoming fiscal period beginning July 1, 2026. The Surcharge applies to one, two and three family homes (“class one properties”) and individual co-op and condominium units (“class two properties”). It does not apply to the ownership of entire apartment buildings but does appear to apply to entities that own multiple condominium or co-op apartments for investment or rental.
The full analysis is available here.