Your Grant Might Be a Wolf in Sheep’s Clothing

By William H. Jennings  |  September 13, 2013  |  Download PDF

Due to a loophole in the Internal Revenue Code, grants to partnerships – unlike grants to corporations – are taxable income.  Worse, they are fully taxable in the year received, and unfortunately, there is no after-the-fact remedy.  Once the partnership receives the grant, the tax consequences are automatic.  Only by advance planning can it be structured properly to avoid this potential tax time bomb. An IRS loophole can lead to devastating tax consequences when partnerships receive New York State energy grants.

This article, “Your Grant Might Be a Wolf in Sheep’s Clothing:  An IRS Loophole Can Lead to Devastating Tax Consequences When Partnerships Receive New York State Energy Grants”, was originally published in the New York Real Estate Journal, August 27, 2013.


About William H. Jennings

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William H. Jennings, CPA, is a Partner in the Real Estate Group at Marks Paneth LLP. Mr. Jennings served on the Marks Paneth Executive Committee, which sets policy and strategy for the firm, from its inception until 2019. He is Past Partner-in-Charge of the Real Estate Group and Past Partner-in-Charge of the firm’s Boca Raton, Florida office. With more than 35 years of experience in public accounting and a keen focus on the real estate... READ MORE +


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