The following provisions of the recently passed New York State law which provide additional protections for victims of harassment/discrimination based on any protected class (sex, race, religion, etc.) go into effect today: 

1)  As of today, the high "severe and pervasive" standard for establishing claims of harassment no longer applies. Rather, any conduct, including isolated incidents, that merely rises above "petty slights" or "trivial inconveniences" may be considered harassment.

2) Whether or not an employee filed an internal complaint prior to filing a lawsuit is no longer determinative of an employer's liability.

3) Non-employees (contractors, vendors, etc.) can now bring claims of harassment against companies based on any protected class.

4) Non-disclosure provisions in agreements settling harassment claims are prohibited unless it is the employee's preference.

5) Mandatory arbitration of harassment claims based on any protected class is now prohibited.

Employers should ensure that these new provisions are included in their annual harassment prevention training.

The Supreme Court of the United States is hearing oral arguments on three high profile cases today which will have a significant impact on LGBTQ rights in the workplace.

In the first two cases, Bostock v. Clayton County, Georgia and Altitude Express, Inc.v. Zarda, the justices will determine whether Federal law prohibits employment discrimination based on sexual orientation. (Federal law generally prohibits discrimination based on "sex"). In the third case, R.G. & G.R. Harris Funeral Homes, Inc. v. Equal Employment Opportunity Commission, the justices will determine whether employment discrimination against transgender people violates Federal law.

The decisions on both of these issues - which will likely be released in early 2020 - will be of great interest to both employers and employees.

New rules for a 20% tax deduction on rental properties published by IRS as 199A Safe Harbor.

What you need to know: 
The Safe Harbor applies to taxpayers who have "an interest in real property held for the production of rents and may consist of an interest in a single property or interests in multiple properties."

KEY - Safe Harbor allows rental real estate enterprises to receive a 20% qualified business income deduction for tax purposes.

If an interest fails to satisfy the requirements of the Safe Harbor, it's still possible to qualify for the 199A deduction by otherwise meeting the definition of a trade or business as set forth in 199A.


Some Notes:

• Multiple Properties - If a taxpayer has an interest in multiple properties, commercial & residential properties can't be combined for the deduction.
• "Mixed Buildings" - In a single building with both residential & commercial purposes (e.g., a storefront with apartments above), property owners have 2 options; 1) treat the property as a single rental real estate enterprise; or 2) separate the interest into both residential & commercial interests. 
• Less Flexibility - Taxpayers also can't change the forms of their interests from year-to-year (i.e., filing multiple properties as a single interest one year, and then filing them as separate interests the next).

Safe Harbor Requirements:

1. Separate books & records are maintained to reflect income for expenses for each rental real estate enterprise;
2. Records should reflect 250+ hours of rental services for each year;
3. Records should also reflect time logs (or similar documents) that show: (i) the amount of hours for all services performed; (ii) descriptions of all services performed; (iii) dates when the services were performed; & (iv) names of persons/companies performing the services; and 
4. A statement attached to a filed original return that outlines the information about the real estate enterprise(s) & why the deduction is being sought by the taxpayer. 

LANDLORDS: Keep logs of rental services and receipts to see if you qualify for the Safe Harbor deduction.

ATTENTION RESIDENTIAL LANDLORDS

On October 3, 2019 Governor Cuomo signed bill A2118 into law, mandating that for all leases moving forward, landlords must accept lease termination notices for tenants living with a "disability" as defined by law, or for the spouse or dependent of a tenant with a disability, should the tenant need to relocate to one of the following:

• An adult care facility;
• A residential health care facility;
• Subsidized low income housing; or 
• A residence of a family member.