Shareholders Owe NY Income Tax on Sale of Ad Company to Wipro

A Wipro Ltd. subsidiary’s acquisition of a digital media services firm created New York personal income tax obligations for two of the firms’ shareholders, a state tax judge ruled in a decision released Thursday.

Selina Petosa owes $103,000 and Daniel Wheeler owes $44,000 to New York for 2020 as a result of the New York Division of Tax Appeals decision that goodwill from the sale is investment income. The decision lowered the tax obligation of the acquired firm but created obligations for its shareholders as net taxable gain that flowed through to them, Administrative Law Judge Winifred M. Maloney wrote ...