Philadelphia Of Counsel David Shechtman was recently quoted in two BNA Daily Tax Report articles.
The first article, “Expensing Can’t Replace Like-Kind Exchange Benefit: Practitioner,” discusses the potential repeal of Section 1031 of the Internal Revenue Code in an upcoming tax reform bill. He explains why the current GOP tax reform proposal permitting businesses and investors to deduct all expenditures for depreciable assets does not provide the same tax benefits as a Section 1031 like-kind exchange under present law.
In the second article, “Keep Doctors, Lawyers Out of a Lower Tax Rate? Complicated,” David discusses another GOP tax reform proposal which would provide a lower tax rate for so-called “passthrough” entities (such as partnerships and S Corporations), but continue to apply current higher rates to partners in service partnerships (such as lawyers, accountants, doctors, financial advisers and consultants). David points to a section of the tax code that lawmakers could use to define the term “service partnership.” However, he also states that determining whether businesses qualify as service partnerships will be a complex undertaking and will likely create an “administrative nightmare.”