Tax Law and International Tax Law

An S corporation election offers early-stage tax advantages but introduces significant constraints on venture financing, equity compensation structures, and exit strategies. Understanding five key restrictions—from shareholder eligibility rules to QSBS disqualification—helps founders determine whether S corporation status aligns with their growth trajectory and capital-raising plans.

While those upward bracket shifts may provide meaningful tax savings on higher-value properties, Washington’s Real Estate Excise Tax (“REET”) structure remains one of the most closely watched elements of transactional planning for commercial and residential property owners and developers. Because Washington applies a tiered, progressive REET rate system for real estate sales, alongside strict rules governing the transfer of controlling interests in entities that own real property, even minor statutory adjustments can drastically alter the economics of a transaction if deal timing or contract mechanics are mishandled.

A New York court has temporarily halted the implementation of New York City's pied-à-terre tax, ruling that the city's notices to homeowners were arbitrary and violated due process rights. The judge ordered the city to restart the entire rollout process while separate lawsuits challenge the tax's legality itself. Despite the stay, property owners who received notices are advised to continue filing for exemptions pending further court guidance.