One of the more attractive provisions under the Internal Revenue Code (“IRC”) permits the gain from the sale or exchange of property to be excluded from income if, during the five-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as his or her […]
This article discusses the benefit of using the A-B family trust for property tax purposes when a couple owns rental property or properties that exceeds more than $1 million of assessed value for parent child exclusion. Each parent can transfer to their children either during their lifetime or on death up to $1 million of […]
Property tax increases are a major concern for families and business owners who want their commercial or rental properties to be transferred or passed on to their heirs. This is also true for the family residence. I will discuss some of the planning that can be done to avoid property tax increases either during a […]
I recently have been involved with a couple of different families that have substantial business interest including commercial real estate. The planning for a larger estate is somewhat different than an estate that is not subject to the transfer tax system discussed below. The similarities between a larger estate and an estate not subject to […]
Since December 2002, the IRS’ regulations allows an individual or couple to transfer their home into a disregarded entity (asset protection) while still be able sell their home and utilize the capital gain exclusion ($250,000 for an individual or $500,000 for a couple) and retain all other income tax benefits. A person’s home is often […]
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 […]
One of the most important things that you should focus on when you meet with your accountant or CPA this tax season is to review which assets now and in the future will be the most important to both you and your family. Recently, I attended the USC Tax Institute and a nationally known speaker […]
Everyone has heard the old slogan about the inevitability of death and taxes. For 99.3% of the population death taxes will not be an issue for their heirs since an individual can transfer up to $5,250,000 or a couple up to $10,500,000 under the new American Taxpayer Relief Act of 2012 (“ATRA”). For the first […]
People are often surprised to learn that tax planning can be an aid in solving closely held business problems. Over time, families and closely held business owners have differences. Sometimes the best way to handle the problem is to have the business be divided. The question is whether or not it can be done tax […]
I am currently working with the second generation of a family that utilized a family limited partnership as a means to control the family wealth by their parents. I represent the two general partners that succeeded their parents. We are now working on the changes to both the form of the limited partnership and drafting […]