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2015’s Top Lessons, Developments, and Reminders (New York Law Journal)

New York Law Journal, January 19, 2016

2015’s Top Lessons, Developments, and Reminders

However, a compelling memorandum submitted by the New York City Bar Association, asserts that, in looking to federal income tax law to determine state estate tax liability, the Department reversed the proper order of analysis. Instead, state law should first determine the character of property rights, and tax law should then be applied based on the state law characterization. Under New York Limited Liability Company (LLC) Law §601, “A membership interest in the limited liability company is personal property. A member has no interest in specific property of the limited liability company.” The New York City Bar Association has requested that the Department publish a revised Advisory Opinion confirming that an interest in a single-member LLC recognized under applicable state law would constitute intangible personal property pursuant to New York LLC Law §601 and therefore would not be subject to New York estate tax.

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