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Weekend Insights: A Summer Tax Preview

June 6, 2021, 2:00 PM

Summer will be here before you know it. And this summer promises to be a lot different than the last.

For one, we’re planning to travel more. Airline travel is already increasing, and more families are hitting the roads for car trips—both trends that are expected to continue.

Boardwalks, amusement parks, movie theaters, and other establishments we associate with summer are opening their doors — many for the first time in over a year. And we’re ready to eat out again: Restaurant searches on Tripadvisor are up 53%.

Frolicking in the waterfall at Yards Park in Washington, DC.
Photographer: Jim Watson/AFP via Getty Images

This means that while we generally think of summer as a chance to slow down, it seems that this year the economy will be heating up. We expect tax proposals—and our tax coverage—to be just as robust.

What can you look forward to in the next few weeks? In between lounging on the beach and lazy days at the lake, be sure to catch our expert analysis on the Biden tax plan, including what it means for global taxes and transfer pricing. We don’t expect cryptocurrency to cool off this summer, either, and have upcoming articles focusing on donating NFTs and cryptocurrency.

We believe that digital nomads and remote work—in some capacity— are here to stay, and will keep you up to date on what to expect as tax authorities make adjustments.

And don’t forget about the Green Book—more on that in a moment.

So even if you’re planning an escape this summer—and I hope that you are—we’ve got you covered.

Quick Numbers Trivia

What percentage of Americans are planning to travel this summer (Jun. 1—Aug. 31)?
(Answer at the bottom.)

Our Roundup

With summer on the way, the tax world is as hot as ever. From transfer pricing to net operating losses, our tax professionals have what you need:

Is global business back? With countries reopening their borders to travelers, companies certainly hope so. In Surprisingly Good IRS APA Annual Report With Strong U.S.-Japan Results, Steven C. Wrappe, Harumi Yamada, and Shunichi Tsutsui of Grant Thornton summarize the important advance pricing agreement (APA) statistics that demonstrate the continued effectiveness of the APA process, highlighting the Japanese statistics that reflect the solid negotiating relationship between the U.S. and Japan.

It’s a hot housing market, but commercial real estate is still reeling. Since the pandemic has had a significant negative impact on income-producing real estate, there are real questions about what that means for valuation. In Passive Real Estate Appreciation in High-Asset Matrimonial Litigation, Mark Dunec of FTI Consulting and Daniel Serviss of Greenbaum, Rowe, Smith & Davis LLP discuss whether this is the optimal time for married couples with real estate assets considering divorce to file.

Fleecy clouds form the backdrop for an airplane in Frankfurt, Germany.
Photographer: Silas Stein/DPA/AFP via Getty Images

With vacation plans on the rise, it may be a good time to be in the travel business. Spirited bidding for Hertz will allow the car rental company to emerge from bankruptcy, perhaps healthier than it ever was. In Hertz’s Reorganization Plan Has Something for Everyone, Robert Willens analyzes the tax consequences for the shareholders of the pre-bankruptcy parent company and the possibility that the new Hertz will be able to use old Hertz’s net operating losses.

Pent-up demand for consumer goods and retail could drive the economy this summer. How businesses respond in a post-pandemic world could determine their long-term health. The move to digitalization, especially by companies that are not in the technology sector, raises universal transfer pricing questions, which companies must be prepared to answer. Baker McKenzie transfer pricing professionals have produced a special report, A Brave New World: Transfer Pricing for Digital Transformation, on the digital revolution to highlight digital technology trends that all non-digital businesses are incorporating and the key tax trends companies must actively navigate.

Write for Us

What’s on our Bloomberg Tax Insights wish list for June? We’re looking for pieces focused on travel and tourism. That could include remote work or digital nomads, dining or entertainment rules for businesses, and rules related to rentals, like Airbnb. It could also include tourist taxes, state or local tourism incentives and credits, or specific travel taxes, like airline taxes.

Bloomberg Tax Insights articles are written by tax professionals offering expert analysis on current issues in tax practice and policy, tax trends and topics, and tax and accounting firm practice and management. If you have an interesting, never-published article for publication, we’d love to hear about it. You can contact our Insights team by emailing TaxInsights@bloombergindustry.com.

Beyond Tax

Summer doesn’t always mean a break. Sometimes, it’s an opportunity to sharpen your skills and plan your next move. Bloomberg Law took a look at a number of new lawyers in their “Acing It as a Summer Associate” series, including Greenberg Traurig’s Sobeida Peralta, Best Best & Krieger’s Marco Ornelas, Foley & Lardner’s Whitney Swart, Blank Rome LLP’s Serena S. Gopal, and Mintz’s Keshav Ahuja.

Spotlight

This week’s spotlight is on cryptocurrency tax expert Shehan Chandrasekera, head of tax strategy at CoinTracker. A published author and sought-after speaker, he was named by Accounting Today as one of the accountants who will be helping to shape—and reshape—the accounting field.

Student Writing Competition

Think you have the “write” stuff for Bloomberg Tax Insights? We’re excited about our inaugural Bloomberg Tax Insights writing competition, intended to highlight the very best of student writing. Our submission deadline is June 15, 2021.

Run with Us

Ready to blow off some steam after a long, long tax season? Bloomberg Tax is challenging you to a virtual 5k. Run as fast as you want—or take a walk just to enjoy the fresh air—and earn a cool medal. And since #TaxTwitter loves its waffles, pancakes, and other breakfast foods, we’re paying it forward by donating the proceeds to World Central Kitchen to fight hunger. You can sign up here.

In Case You Missed It

In May, Gina Rubel of Furia Rubel Communications, Inc., led our first Lunch and Learn, “What you need to know about online reputation management.” As part of her presentation, she offered a quick list of resources for claiming your digital real estate:

If you’d like a copy of the presentation, email kerb@bloombergindustry.com and put “Handout” in the subject line.

Quick Numbers Answer

Tourists at the beach on Silhouette Island, third-largest island in the Seychelles.
Photographer: Yasuyoshi Chiba/AFP via Getty Images

According to a recent Tripadvisor survey, over two-thirds of Americans (67%) are planning to travel this summer, a 17% increase from those who traveled this spring.

Exclusive Content for Bloomberg Tax Subscribers

Also a hot topic this summer? President Joe Biden’s tax policy proposals will be. Last month, the Treasury Department issued “General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals.” It’s the first Green Book issued since 2016. You can find a summary of the Green Book in our BTAX OnPoint here.
*Note: Your Bloomberg Tax login will be required to read the Green Book OnPoint.

More Great Tax Content

This is a weekend roundup of Bloomberg Tax Insights, written by practitioners and featuring expert analysis on current issues in tax practice and policy. For a full archive of articles, browse by jurisdiction at Daily Tax Report, Daily Tax Report: State, Daily Tax Report: International, Transfer Pricing Report, and Financial Accounting.

You can also follow Bloomberg Tax on Twitter, Facebook, and LinkedIn.

What Did You Think?

We hope you found Weekend Insights valuable. We’d love to hear your suggestions for making it more enjoyable. Here’s our email: TaxInsights@bloombergindustry.com. Thank you for reading!

To contact the reporter on this story: Kelly Phillips Erb in Washington at kerb@bloombergindustry.com

To contact the editors responsible for this story: Rachael Daigle at rdaigle@bloombergindustry.com; Yuri Nagano at ynagano@bloombergtax.com

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