Passive Activity Grouping Rules: Changes and Soon-to-be Required Disclosures (Part 1)

(Feb, 2011)

The Passive Activity Loss (PAL) rules of Internal Revenue Code (IRC) Section 469 were born out of the tax shelter days of the late 1980's and early 1990's. As taxpayers have discovered, the acronym "PAL" can be anything but friendly. In simplest terms, the PAL rules place limitations on taxpayer's ability to deduct losses or utilize tax credits from activities in which the taxpayer does not "actively" or "materially" participate. In March 2010, the IRS released Revenue Procedure (Rev.

Beyond the Numbers: Robert T. Cherry

(Feb, 2011)

Robert T. Cherry, CPA, CVA, Partner, has been with Dermody, Burke & Brown for over 27 years and leads the firm’s privately held business niche. Bob has completed the educational and experience requirements to earn the professional designation of CVA, Certified Valuation Analyst, from the National Association of Certified Valuation Analysts. He is a 1984 graduate of Le Moyne College. Bob is a member of the AICPA, NYSSCPA, Associated Builders and Contractors, Construction Financial Management Association, and the NACVA.

Calmer Seas Ahead for the Trust and Estate Profession

(Jan, 2011)


For most of 2010, trust and estate tax professionals had answered their clients' inquiries with "It depends." Frustration grew for everyone as the end of the year loomed ahead and Congress had still not addressed the sunset provisions of "The Bush Tax Cuts." 

Are work related expenses deductible?

(Jan, 2011)

Let's face it, in these tough economic times we are constantly looking for ways to end the day with a few extra bucks in our pocket. Consequently the question of whether work related expenses are deductible or not comes up quite often and the answer is a definitive "it depends".

Beyond the Numbers: John W. Taylor

(Jan, 2011)

John Taylor recently joined Dermody, Burke & Brown, CPAs, LLC with over 3 years of tax experience in public accounting. As a Tax Senior Associate at the firm, John specializes in Corporate, Individual, Subchapter S-Corporation and Partnership returns. John holds a Bachelors Degree in Accounting from St. John Fisher College.

John currently resides in Camillus, NY with his fiancé, Shadia. John enjoys playing golf.

You can reach John at 315-471-9171 or via email at

NYPMIFA for Endowment Funds Signed Into Laws in NYS

(Dec, 2010)

On September 17, 2010 New York State enacted the New York Prudent Management of Institutional Funds Act (NYPMIFA) into law, the 48th state to do so. NYPMIFA amended current state law (NY’s 1978 UMIFA) relating to institutional funds (e.g.-endowment funds) that had proven outdated or difficult to administer, and applies to charitable institutions and other entities incorporated under New York Not-for-Profit Corporation Law. These would include public charities, private foundations, religious corporations, social welfare organizations, and others.

Christmas Comes Early Tax Compromise Bill Signed By President

(Dec, 2010)

The much anticipated tax bill was signed into law late in the afternoon on December 17. The law extends the Bush era tax rates through 2012 which includes lower rates for individuals, maximum rates of 15% on qualified dividends and long-term capital gains, marriage penalty relief and removal of itemized deduction and personal exemption limits on taxpayers with adjusted gross income above $169,550.

Reading the Tea Leaves

(Nov, 2010)

The November elections are over with the Republicans winning historic gains and improving their position in the Senate. This will change the political dynamics in the next Congress starting in January. In the meantime, the Democrats are still in charge of both houses until the end of the year and will consider a variety of issues that will affect every taxpayer in the country, rich, poor and middle class.

IRS Taxpayer & Tax Preparer Initiatives: Going (for the) “Green”!

(Nov, 2010)

“Going Green” is all the rage these days as individuals and businesses strive to be more eco-friendly and reduce their “carbon footprints”. The Internal Revenue Service (IRS) is doing its part to become more environmentally friendly. For example, they won’t be mailing you a 1040 booklet this year. Yes, they are saving trees! But that is not the primary “green” initiative the IRS is currently undertaking. In addition to “going green”, they have and will continue to implement new initiatives with a focus towards “going for the green”, as in money!

Beyond the Numbers: Karen M. Matticio, CPA

(Nov, 2010)

Karen M. Matticio, CPA, Partner, is a certified public accountant at Dermody, Burke & Brown, CPAs, LLC with 20 years of consulting, accounting, tax and audit experience. She currently leads the Firm’s Medical Management Services Niche. Her concentrations include physician and dental practices and closely-held Family Businesses. Karen is a graduate of the University of Massachusetts at Amherst and is a member of the AICPA, NYSSCPA, and is also a member of the Medical Group Management Association.