This article will focus on how to maximize an increase of a Unadjusted Basis Immediately After Acquisition (“UBIA”) where a member or partner of an LLC or LP interest is below the estate tax exclusion amount of $11,400,000 ($22,800,000 for a married couple) under the 2017 Tax Cuts and Jobs Act (“TCJA”). Please see the […]
Because of the complexities of the Tax Cuts and Jobs Act (“Act”) that is effective January 1, 2018 many taxpayers will not be able to take the 20% pass-through business deduction in 2018 due to improper positioning, or failure to restructure in ways that can make the deduction available. One of the main reasons deals with the […]
Beginning on January 1, 2018, if your business is taxed as a partnership you will need to file an election in order to try and avoid some of the new partnership audit rules. There will be two types of partnerships for audit purposes. The large partnership is one that has 100 partners and assets of […]
We all know that relationships are very important in our lives. This is true in our family as well as our business lives. In my practice, I have dealt with the various dynamics on the transfer of a family business after the family’s senior generation passes on the business to the next generation hoping that […]
At some point in time partners decide to go their separate ways for various reasons. They may want to add new partners that would make the current partnership economically stronger after the change of partners. Lastly, they might want to separate assets holdings by spinning them off and change partners at the same time. Most […]
The Patient Protection and Affordable Care Act (PPACA) and the American Taxpayer Relief Act of 2012 (ATRA) increased the Medicare tax on earned income and introduced a new tax on the net investment income (NII) of hi-income individuals. The 3.8% tax applies to the extent an individual’s compensation or self-employment income exceeds the specified threshold […]
Often business owners want to segregate the good assets from potential adverse liabilities. In the formation of a new business this can be easily plan for. The challenge is when there was no initial planning and the business is now successful. The problem is that separating the good from bad assets can have possible adverse […]
Buy sell provisions are very common in closely held businesses to control the transfer of shares of stock, partnership and or membership interests depending upon the business entity used by the owner(s). They typically are used to determine the value of the transferred interest based upon various types of formula clauses when a transfer occurs […]
The California Revised Uniform Limited Liability Company Act (RULLCA) is effective on January 1, 2014, RULLCA. It revises the rules for formation and operation of Limited Liability Companies (LLCs) in the state of California. Last month’s article gave a basic overview of some of the key changes. After attending various seminars on RULLCA and its […]
In 2014, the estate and gift tax is $5.34 million for an individual and $10.68 million for a couple. That does not mean for the closely held business, succession planning for the next generation and continuing the closely held business is still not very important. There are many non-tax reasons for such planning. The old […]