Tax Night: Planning for Higher Income, Estate, and Medicare Taxes

Size: px
Start display at page:

Download "Tax Night: Planning for Higher Income, Estate, and Medicare Taxes"

Transcription

1 Tax Night: Planning for Higher Income, Estate, and Medicare Taxes after the 2012 Elections, Attorney Tax Section of the Los Angeles County Bar Association 1, Business and Tax Attorney Law Office of All rights reserved 2 Bill Staley

2 This presentation should be viewed only as a summary of the law and not as a substitute for tax or legal consultation in a particular case. Your comments and questions are always welcome. 3 The Big Issues 4 Bill Staley

3 The Big U.S. Domestic Issues Jobs 8.3% unemployment rate in March, 2012 (43% of those unemployed for over 26 weeks) Should be under 6% Growth 1.7% annual rate of GDP growth for 2011 Should be over 3.3% 5 The Big U.S. Domestic Issues Deficit reduction U.S. national debt per taxpayer - $137,000 Unfunded liability per taxpayer - $1,042,000 Medicare 70% Prescription Drug program 17% Social Security 13% 6 Bill Staley

4 The Big Tax Issues for Closely-Held Businesses Marginal income tax rates Certainty Ability to comply and cost of compliance 7 Key Marginal Tax Rates 8 Bill Staley

5 Key Marginal Tax Rates Ordinary income tax rate (Federal maximum) % 45% on net investment income over $250,000 and taxable income over $288,000 Includes 39.6% top ordinary income rate, effective 1.2% rate increase for itemized deduction cutback and 3.8% Medicare tax on net investment income There will also be an 0.9% Medicare tax on wages and self-employment income over $250,000, not deductible 9 Key Marginal Tax Rates Governor s proposed California constitutional amendment by ballot initiative: For 2012 taxable income over $250,000, 9.3% income tax rate increases to 10.3% Over $300,000, new rate is 10.8% Over $500,000, new rate is 11.3% For 2013, the breaks move to $340,000, $408,000 and $680,000, 000 then index until 2017, when they sunset The extra 1% tax on taxable income over $1M appears to apply, so the highest rate would be 12.3% (effectively 12.9% with itemized deduction cutback) Sales and use tax rate increase of 0.5% through Bill Staley

6 Key Marginal Tax Rates Ordinary income tax rate (highest effective combined Federal and California) 2012 now 42% on CA taxable income over $1M [2012 w new [ 2013 w CA law] 2013 new CA law] [43%] 50.7% on net investment income over $250,000 and CA taxable income over $1M, no S corp [52%] 43% through an S corp [44%] 49% through S corp as active trade or business income [50%] 51.5% through S corp as net investment income [53%] 11 Key Marginal Tax Rates Tax rate on qualified dividends (highest Federal rate, non-corporate taxpayer) 2012 now % 41% on net investment income under $250,000 45% on net investment income over $250,000 a huge jump in rates! 12 Bill Staley

7 Key Marginal Tax Rates Tax rate on qualified dividends (highest effective combined Federal and California rate, non-corporate taxpayer) 2012 now 22% on CA taxable income over $1M [2012 w new CA law] 2013 [23%] 47% on CA taxable income over $1M and net investment income under $250,000 [2013 w new CA law] [48%] 51% same, with net investment income over $250,000 1% more through an S corp in all cases [52%] 13 Key Marginal Tax Rates Tax rate on net long-term capital gain (highest Federal rate, non-corporate taxpayer) % 21% on net investment income under $250,000, held more than 5 years 25% on net investment income over $250, Bill Staley

8 Key Marginal Tax Rates Tax rate on net long-term capital gain (highest effective combined Federal and California rate, non-corporate taxpayer, no AMT) 2012 now 22% CA taxable income over $1M [2012 w new CA law] 2013 [23%] 29% same as on left, on net investment income over $250,000, held over 5 years 31% Same, held under 5 years [2013 w new CA law] [30%] [32%] 23% through an S corp [24%] 32% Same, through an S corp [33%] 15 Key Marginal Tax Rates Tax rate on net long-term capital gain (max effective combined Federal and California rate, non-corporate taxpayer, with AMT) 2012 now 26% on CA taxable income over $1M [2012 w new CA law] 2013 [28%] 35% same as on left, on net investment income over $250,000, held over 5 years [2013 w new CA law] [37%] 27% same as above, through an S corp [29%] 36% same as above, through an S corp 1992 AMT exemption amounts [39%] 16 Bill Staley

9 Key Marginal Tax Rates C corp income or gain distributed as long-term capital gain to non-corporate shareholders (max effective combined Federal and California income tax rate) 2012 now [2012 w new CA law] 53% at 34% Fed corp rate) [54%] 57% on net investment income over $250,000, held over 5 years 2013 [2013 w new CA law] [58%] 54% at 35% Fed corp rate [55%] 58% [59%] 17 Key Marginal Tax Rates C corp income or gain distributed as a dividend to non-corporate shareholders (max effective combined Federal and CA income tax rate) 2012 now [2012 w new CA law] 53% at 34% Fed corp rate) [54%] 70.6% on net investment income over $250, [2012 w new CA law] [71.5%] 54% at 35% Fed corp rate [55%] 71.2% Yes, 71% All assume California taxable income exceeds $1M [72%] and 72% 18 Bill Staley

10 Other Federal Business Tax Legislation Changes 19 Federal Business Tax Legislation 100% bonus depreciation Assets placed in service after and before GONE Extended 50% bonus depreciation Assets placed in service in 2012 GONE AFTER 2012 Or, accelerated AMT and R&D credits with no bonus depreciation Through 2012 GONE AFTER Bill Staley

11 Federal Business Tax Legislation 15-year depreciation (vs. 39 years) for leasehold, restaurant and retail improvements Placed in service before GONE Extended special amortization of film and TV costs up to $15M Incurred before GONE Election to deduct environmental remediation costs incurred before GONE 21 Federal Business Tax Legislation Section 179 expensing amount per year that can be expensed $250,000 $500,000 $125,000 $25,000 Section 179 expensing Phase-out starts at buys of : $800, $2M $500, $200, Extended inclusion of computer software through 2012 GONE AFTER 2012 Cannot generate NOL carrybacks -- but bonus depreciation can 22 Bill Staley

12 Federal Business Tax Legislation Recognition period for S corp built-in gains years 5 years 10 years California did not conform. 23 Federal Business Tax Legislation Forms : Reporting by passive owners of rental properties for services provided by noncorporate providers REPEALED in : Reporting for payments for property and services REPEALED in 2011 Reporting for payments to corporations Increased penalties for failing to file info returns due after 2010 NOT REPEALED 24 Bill Staley

13 Federal Business Tax Legislation Extension of AMT exemption amount (1992 amounts) Married, joint $72,000 $74,000 $45,000 Single $47,000 $48,000 $24,000 AMT exemption phase-out Married, joint $150,000- $440,000 $150,000 to $448,000 Single $112,000- $112,000 to $302,000 $306,000 $150,000 to $330,000 $112,000 to $249, Federal Business Tax Legislation Economic substance doctrine Unifies application of doctrine by courts Concern about meaningless steps in intentional step transactions LMSB Director of Field Operations must approve application of penalty 20% accuracy penalty Special 40% penalty for not disclosing the transaction 26 Bill Staley

14 Federal Business Tax Legislation Other 2010 extenders thru 2011 only Empowerment zones R&D credit New Markets credit Charitable contribution deduction limits: Inventory of food or books Computer technology and equipment S corp stock basis adjusted down by basis (not value) of S corp s property contribution 27 Effects of Rate Uncertainty on Choice of Entity Decisions 28 Bill Staley

15 Effects of Rate Uncertainty on Choice of Entity Decisions Built to Sell Use flow-through entity 29% [30%] tax on capital gain on sale of goodwill or sale of stock 71% [72%] rate for asset sale proceeds distributed by C corp as dividends 57% or 58% [58% or 59%] for asset sale proceeds distributed by C corp as long-term capital gain on assets held for more than 5 years An LLC will never become a C corporation by mistake 29 Effects of Rate Uncertainty on Choice of Entity Decisions Cash Cow Imperative to avoid the 71% tax rate on a C corp s distribution of profits as dividends LLC (which does not default to a C corporation) is best for a new entity (if an LLC outstanding allowed to operate the business in California Bus. & Prof. Code issue) S corporation election is best for an existing corp, since conversion to LLC (not taxed as a corp) will be a taxable liquidation (monitor built-in gains after election) Rates of 49% or 51% [49.5% to 52%] on flow-through income -- an incentive to hire? 30 Bill Staley

16 Effects of Rate Uncertainty on Choice of Entity Decisions Collapsible Corporations Sell stock at capital gains rates? 29% or 31% [30% or 32%] Or have C corp sell assets and distribute proceeds? 58% [59%] if dissolve, 71% [72%] if business continues The collapsible corporation rules are scheduled to revive in Effects of Rate Uncertainty on Choice of Entity Decisions IF - No Goodwill to Sell, Taxable Income Never Exceeds $75,000, No Dividends Take advantage of the low federal corporate tax rates (15% and 25%) on the first $75,000 of income. Advantage of C corporation status disappears if the corporation s profits are distributed as dividends or the business is sold in an asset sale 32 Bill Staley

17 Sale of a Business in Sale of a Business in 2013 Sell Stock, Not Assets (especially not C corporation assets) A 20-percentage-point spread will continue between selling stock and selling C corp assets The sale of assets by a pass-through entity will continue to generate some ordinary income from depreciation recapture, etc., but the parties might be able to find an acceptable solution. Assets sales by S corps with lots of built-in gain will continue to be difficult 34 Bill Staley

18 Sale of a Business in 2013 Buy Assets, Not Stock Buyers that are pass-through entities owned by individuals, estates and trusts will be more motivated to buy assets because As tax rates on ordinary income increase, their depreciation and amortization deductions will save them more money C corp buyers will be as motivated as ever to buy assets. No change for them because C corp tax rates are not scheduled to change. 35 Sale of a Business in 2013 Payments to Sellers for Non-Competes, Employment and Consulting Agreements, Leases and Licenses For Sellers, these will be slightly less attractive The spread will narrow between their after-tax net on ordinary income from these allocations and their after-tax net after allocating the amounts to C corp assets and distributing the assets. Buyers will continue to prefer allocations: to employment and consulting agreements that are deductible when paid to non-competes and goodwill over payments for stock (but will still prefer allocations to hard assets that can be depreciated quickly) 36 Bill Staley

19 Sale of a Business in 2013 Uncertainty About Tax Regimes in an Era of Huge Federal and California Budget Deficits and Unfunded Liabilities Buyers and other investors will face uncertainty about their after-tax rates of return on purchases -- and hiring decisions Sellers will face uncertainty about the portion of the sale proceeds that t they can keep after taxes and about the portion of the after-tax amount that their families can keep after estate taxes 37 Proposed but not Enacted 38 Bill Staley

20 Proposed but not Enacted Carried interest Proposed IRC 710 Recharacterizes as ordinary income 75% of certain capital gain of an investment fund manager in an investment fund Turns off all nonrecognition provisions for such interests Attempts to leave in place capital gain treatment for invested capital 39 Proposed but not Enacted Carried interest Proposed IRC 710 Passed as HR 4213 by House in June 2010 Failed Senate cloture vote A big issue was the unfunded extension of unemployment benefits -- which passed in December 2010 as part of the 2010 Tax Relief Act 40 Bill Staley

21 Proposed but not Enacted Synthetic interests Proposed IRC 710(e) Passed House as part of carried interest bill, failed in Senate cloture vote Recharacterizes as ordinary income all of the gain on a synthetic interest held by one who performed investment services for the entity Targets interests that change in value or payout based on changes in the value of the managed assets, even if no gain is realized 41 Proposed but not Enacted Carried and Synthetic interest rules Proposed IRC % penalty for underpayments Expected to raise $19B over 10 years 42 Bill Staley

22 Proposed but not Enacted Self-employment taxes for professional firms ($11B over 10 years, in 2010 HR 4213) All flow-though income would be selfemployment income for SET purposes Targets S corp engaged in a professional service business AND three or fewer principal shareholders Targets S corp that is a partner in a professional service business Would remove SET exclusion for active limited partners in professional service firms 43 Proposed but not Enacted Section 83 and partnership interests (in 2010 HR 4213) Method of valuing a partnership interest that is transferred in connection with the performance of services As if there was a deemed sale, all creditors paid and the balance distributed A deemed Section 83(b) election is made at the time of the transfer Service provider can unmake election 44 Bill Staley

23 Proposed but not Enacted GRATs would be required to last for at least 10 years (in 2010 HR 4213) 45 Broad Tax Reform 46 Bill Staley

24 Broad Tax Reform Milton Friedman (1999): The real cost of government -- the total t tax burden -- equals what government spends plus the cost to the public of complying with government mandates and regulations and of calculating, paying, and taking measures to avoid taxes. Anything that reduces that real cost -- lower government spending, elimination of costly regulations on individuals or businesses, simplification of explicit taxes -- is a tax reform. 47 Broad Tax Reform President s Economic Recovery Advisory Board chaired by Paul Volker REPORT ON TAX REFORM OPTIONS: SIMPLIFICATION, ENFORCEMENT AND CORPORATE TAXATION, Bill Staley

25 Broad Tax Reform Volker Report ( ): The tax code has become more complex and more unstable over the last two decades, in part because legislators have increasingly used targeted tax provisions to achieve social policy objectives normally achieved by spending programs. There have been more than 15,000 changes to the tax code since 1986, and a current JCT pamphlet lists 42 pages of expiring provisions. 49 Broad Tax Reform Volker Report: Beyond these direct costs that can be measured in time, money, and revenue lost to noncompliance, the complexity of the tax system is a tremendous source of frustration to American taxpayers, reduces the system s transparency, and undermines trust in its fairness. 50 Bill Staley

26 Broad Tax Reform Bipartisan National Commission on Fiscal Responsibility s and Reform co-chaired c by Alan Simpson and Erskine Bowles THE MOMENT OF TRUTH, Broad Tax Reform Simpson-Bowles Report ( ): America s tax code is broken and must be reformed. In the quarter century since the last comprehensive tax reform, Washington has riddled the system with countless tax expenditures, which are simply spending by another name. These tax [expenditures] amounting to $1.1 trillion a year of spending in the tax code not only increase the deficit, but cause tax rates to be too high. Instead of promoting economic growth and competitiveness, our current code drives up health care costs and provides special treatment to special interests. 52 Bill Staley

27 Broad Tax Reform Simpson-Bowles Report ( ): The code presents individuals id and businesses with perverse economic incentives instead of a level playing field. The current individual income tax system is hopelessly confusing and complicated. The corporate income tax, meanwhile, hurts America s ability to compete. 53 Broad Tax Reform Simpson-Bowles Report ( ): Tax reform should lower tax rates, reduce the deficit, simplify the tax code, reduce the tax gap, and make America the best place to start a business and create jobs. Rather than tinker around the edges of the existing tax code, the Commission proposes fundamental and comprehensive tax reform that achieves these basic goals. 54 Bill Staley

28 Thank you Bill Staley Attorney Woodland Hills, California Bill Staley

CLOSELY-HELD BUSINESSES

CLOSELY-HELD BUSINESSES HOW RECENT TAX LEGISLATION AFFECTS CLOSELY-HELD BUSINESSES, Attorney USC Gould School of Law 2011 TAX INSTITUTE J 24 2011 January 24, 2011 Los Angeles , Business and Tax Attorney Law Office of 818 936-3490

More information

HOW THE TAX RELIEF ACT AFFECTS

HOW THE TAX RELIEF ACT AFFECTS HOW THE TAX RELIEF ACT AFFECTS CLOSELY-HELD BUSINESSES, Attorney Tax Section of the Pasadena Bar Association February 18, 2011 1, Business and Tax Attorney Law Office of 818-936-3490 www.staleylaw.com

More information

2010 FOCUS ON BUSINESS

2010 FOCUS ON BUSINESS 2010 FOCUS ON BUSINESS December 1, 2010 FEDERAL TAX UPDATE 2010 SMALL BUSINESS JOBS ACT & MISCELLANEOUS TAX PROVISIONS PRESENTED BY: DAVID P. VENISKEY, CPA TAX PARTNER EFP ROTENBERG, LLP TAX RATES Income

More information

SELLING THE BUSINESS: PRACTICAL, TAX AND LEGAL ISSUES. William C. Staley. Attorney www.staleylaw.com 818 936-3490

SELLING THE BUSINESS: PRACTICAL, TAX AND LEGAL ISSUES. William C. Staley. Attorney www.staleylaw.com 818 936-3490 SELLING THE BUSINESS: PRACTICAL, TAX AND LEGAL ISSUES William C. Staley, Attorney www.staleylaw.com 818 936-3490 WEST SAN GABRIEL VALLEY DISCUSSION GROUP LOS ANGELES CHAPTER CALIFORNIA SOCIETY OF CPAS

More information

Small Business Tax Saving Strategies for the 2012 Filing Season

Small Business Tax Saving Strategies for the 2012 Filing Season Small Business Tax Saving Strategies for the 2012 Filing Season Few business sectors embody today s entrepreneurial spirit, drive for innovation and unwavering perseverance more than the small business

More information

Willamette Management Associates

Willamette Management Associates Valuation Analyst Considerations in the C Corporation Conversion to Pass-Through Entity Tax Status Robert F. Reilly, CPA For a variety of economic and taxation reasons, this year may be a particularly

More information

June 2, 2003. Re: Jobs and Growth Tax Relief Reconciliation Act of 2003

June 2, 2003. Re: Jobs and Growth Tax Relief Reconciliation Act of 2003 June 2, 2003 Re: Jobs and Growth Tax Relief Reconciliation Act of 2003 On Wednesday, May 28, 2003, President Bush signed into law the third largest tax cut in U.S. history. The Jobs and Growth Tax Relief

More information

Session 19 -Taxable acquisitions

Session 19 -Taxable acquisitions -Taxable acquisitions Acquire stock or assets? Assume that Buyer Corporation wants to acquire the business of Target Corporation Target's assets have appreciated and are worth more than their tax basis

More information

2014-2015 Tax Update: Another Year For Tax Breaks By Kurt J. Kilwein, CPA, CFP, Partner and Olga Zarney, CPA, MBT, Manager

2014-2015 Tax Update: Another Year For Tax Breaks By Kurt J. Kilwein, CPA, CFP, Partner and Olga Zarney, CPA, MBT, Manager WINTER 2014-2015 2014-2015 Tax Update: Another Year For Tax Breaks By Kurt J. Kilwein, CPA, CFP, Partner and Olga Zarney, CPA, MBT, Manager Individual Taxation Many of the tax breaks which expired at the

More information

Choice of Entity. Paul E. Costantino, CPA, MST Costantino Richards Rizzo, LLP, Wakefield

Choice of Entity. Paul E. Costantino, CPA, MST Costantino Richards Rizzo, LLP, Wakefield Choice of Entity Paul E. Costantino, CPA, MST Costantino Richards Rizzo, LLP, Wakefield I. Overview of Entities The entity selection process is one of the first steps in the formation of any business,

More information

YEAR-END INCOME TAX PLANNING FOR CORPORATE AND NON-CORPORATE BUSINESSES

YEAR-END INCOME TAX PLANNING FOR CORPORATE AND NON-CORPORATE BUSINESSES 2014 YEAR-END INCOME TAX PLANNING FOR CORPORATE AND NON-CORPORATE BUSINESSES UPDATED November 11, 2014 www.cordascocpa.com INTRODUCTION 2014 YEAR-END INCOME TAX PLANNING FOR BUSINESSES It s that time of

More information

tax planning strategies

tax planning strategies tax planning strategies In addition to saving income taxes for the current and future years, tax planning can reduce eventual estate taxes, maximize the amount of funds you will have available for retirement,

More information

Current Trends in LLC and Partnership Tax Planning

Current Trends in LLC and Partnership Tax Planning INSIDE THE MINDS Current Trends in LLC and Partnership Tax Planning Leading LaU:Jers on Understanding the Imp,lications of Recent Legislation and Developing Effective Client Strategies ASPATORE ATRA and

More information

PATRICK J. RUBEY & COMPANY, LTD. CERTIFIED PUBLIC ACCOUNTANTS

PATRICK J. RUBEY & COMPANY, LTD. CERTIFIED PUBLIC ACCOUNTANTS PATRICK J. RUBEY & COMPANY, LTD. CERTIFIED PUBLIC ACCOUNTANTS American Taxpayer Relief Act January 1, 2013 Here are the act s main tax features: Individual tax rates All the individual marginal tax rates

More information

TECHNICAL EXPLANATION OF THE TAX PROVISIONS IN SENATE AMENDMENT 4594 TO H.R

TECHNICAL EXPLANATION OF THE TAX PROVISIONS IN SENATE AMENDMENT 4594 TO H.R TECHNICAL EXPLANATION OF THE TAX PROVISIONS IN SENATE AMENDMENT 4594 TO H.R. 5297, THE SMALL BUSINESS JOBS ACT OF 2010, SCHEDULED FOR CONSIDERATION BY THE SENATE ON SEPTEMBER 16, 2010 Prepared by the Staff

More information

Obama Tax Compromise APPROVED by Congress

Obama Tax Compromise APPROVED by Congress December 17, 2010 Obama Tax Compromise APPROVED by Congress on Thursday, December 16, 2010 The $858 billion tax deal negotiated by President Obama and Republican leadership was overwhelmingly approved

More information

ANALYSIS OF AMERICAN TAXPAYER RELIEF ACT OF 2012 (INCLUDING CALIFORNIA CONFORMITY)

ANALYSIS OF AMERICAN TAXPAYER RELIEF ACT OF 2012 (INCLUDING CALIFORNIA CONFORMITY) ANALYSIS OF AMERICAN TAXPAYER RELIEF ACT OF 2012 (INCLUDING CALIFORNIA CONFORMITY) AMERICAN TAXPAYER RELIEF ACT OF 2012 In the wee hours of New Year s morning, the Senate passed the American Taxpayer Relief

More information

Considerations in the Health Care Company Tax Status Conversion from C Corporation to Pass-Through Entity

Considerations in the Health Care Company Tax Status Conversion from C Corporation to Pass-Through Entity Health Care Forensic Analysis Insights Considerations in the Health Care Company Tax Status Conversion from C Corporation to Pass-Through Entity Robert F. Reilly, CPA For a variety of economic and taxation

More information

2010 Actual 2011 Proposed Budget* Married [1] Single Rate Married [1] Single Rate

2010 Actual 2011 Proposed Budget* Married [1] Single Rate Married [1] Single Rate This article contains general information and is not intended to be a specific analysis of the tax issues that could affect an individual s specific circumstances. In 2011, changes in capital gains and

More information

HIRE Act Pending Tax Matters OtherActsof Congress 2010 Small Business Jobs Act of 2010 Uncertain Tax Positions

HIRE Act Pending Tax Matters OtherActsof Congress 2010 Small Business Jobs Act of 2010 Uncertain Tax Positions HIRE Act 2010 Legislative Update Pending Tax Matters OtherActsof Congress 2010 Small Business Jobs Act of 2010 Uncertain Tax Positions HIRE ACT Signed into law by President Obama on March 18, 2010 Two

More information

2013 Federal Income Tax Update with The American Taxpayer Relief Act of 2012

2013 Federal Income Tax Update with The American Taxpayer Relief Act of 2012 THE UNIVERSITY OF TENNESSEE 2013 SINGLETON B. WOLFE MEMORIAL TAX CONFERENCE OCTOBER 31, 2013 2013 Federal Income Tax Update with The American Taxpayer Relief Act of 2012 JOHN D. HOUSTON, CPA Certified

More information

H.R. 3221 Housing Assistance Tax Act of 2008

H.R. 3221 Housing Assistance Tax Act of 2008 H.R. 3221 Housing Assistance Tax Act of 2008 July 23, 2008 I. ASSISTANCE FOR HOME BUYERS AND HOME OWNERS Refundable first-time home buyer credit. The bill would provide a refundable tax credit that is

More information

tax planning strategies

tax planning strategies tax planning strategies In addition to saving income taxes for the current and future years, effective tax planning can reduce eventual estate taxes, maximize the amount of funds you will have available

More information

Strengthening the Economy and Increasing Wages by Making the Tax Code Simpler and Fairer for America s Small Businesses. Overview

Strengthening the Economy and Increasing Wages by Making the Tax Code Simpler and Fairer for America s Small Businesses. Overview Strengthening the Economy and Increasing Wages by Making the Tax Code Simpler and Fairer for America s Small Businesses Page 1: Page 2-3: Page 4-6: Page 7: Overview Small Business Draft: Core Components

More information

By: Philip J. Clements and Cassie Glynn. October 2011

By: Philip J. Clements and Cassie Glynn. October 2011 C TO S TAX CONVERSION By: Philip J. Clements and Cassie Glynn Fundamental Tax Planning Principles: October 2011 General Principles: When everything is done, you should find that income or gains are taxed

More information

A DOZEN SECRET TECHNIQUES OF A BUSINESS AND TAX ATTORNEY 1. William C. Staley, Attorney www.staleylaw.com 818 936-3490

A DOZEN SECRET TECHNIQUES OF A BUSINESS AND TAX ATTORNEY 1. William C. Staley, Attorney www.staleylaw.com 818 936-3490 A DOZEN SECRET TECHNIQUES OF A BUSINESS AND TAX ATTORNEY 1 William C. Staley, Attorney www.staleylaw.com 818 936-3490 Warner Center Estate and Tax Planning Council Woodland Hills October 1, 2008 1 This

More information

SMALL BUSINESS LENDING BILL PROVISIONS September 20, 2010

SMALL BUSINESS LENDING BILL PROVISIONS September 20, 2010 SMALL BUSINESS LENDING BILL PROVISIONS September 20, 2010 Below is a summary of provisions of the Small Business Lending bill that was debated and passed in the Senate during the week of September 13,

More information

Mergers & Acquisitions The Basics

Mergers & Acquisitions The Basics Mergers & Acquisitions The Basics Following is a Chart Comparing and Contrasting Asset and Equity Sales taken from my book: Buying and Selling a Business A Practical Guide to the Acquisition and Sale Process

More information

Taxation of Nonresidents and Individuals Who Change Residency

Taxation of Nonresidents and Individuals Who Change Residency State of California Franchise Tax Board Taxation of Nonresidents and Individuals Who Change Residency FTB Publication 1100 (REV 04-2014) For forms and information, go to ftb.ca.gov and search for forms

More information

FORMALIZING YOUR FIRM: LLC VERSUS S CORPORATION VERSUS C CORPORATION

FORMALIZING YOUR FIRM: LLC VERSUS S CORPORATION VERSUS C CORPORATION FORMALIZING YOUR FIRM: LLC VERSUS S CORPORATION VERSUS C CORPORATION by Stephanie L. Chandler 1 and Lisa S. Miller 2, Jackson Walker L.L.P. As we work with entrepreneurs in setting up the structures for

More information

The Impact of Proposed Federal Tax Reform on Farm Businesses

The Impact of Proposed Federal Tax Reform on Farm Businesses The Impact of Proposed Federal Tax Reform on Farm Businesses James M. Williamson and Ron Durst United States Department of Agriculture Economic Research Service Washington, DC Poster prepared for presentation

More information

A Guide to Incorporating Your Business

A Guide to Incorporating Your Business A Guide to Incorporating Your Business Forming a C or S Corporation Advantages of Incorporating Operating and Maintaining a Corporation Comparing C Corps., S Corps. and LLCs Table of Contents INTRODUCTION....................................................

More information

Business Entity Conversions: Income Tax Consequences You May Not Anticipate

Business Entity Conversions: Income Tax Consequences You May Not Anticipate Presenting a live 110-minute teleconference with interactive Q&A Business Entity Conversions: Income Tax Consequences You May Not Anticipate Understanding and Navigating Complex Federal Income Tax Implications

More information

Business Entity Selection

Business Entity Selection Business Entity Selection Chris Stevenson, Esq. Drummond Woodsum cstevenson@dwmlaw.com (t) 800-727-1941 General Issues A corporation can generate double taxation as profits are taxed at the corporate level

More information

2014 YEAR-END TAX PLANNING LETTER. Tax Strategies for Individuals

2014 YEAR-END TAX PLANNING LETTER. Tax Strategies for Individuals Dear Clients and Friends, The country s taxpayers are facing more uncertainty than usual as they approach the 2014 tax season. They may feel trapped in limbo while Congress is preoccupied with the November

More information

Bunting, Tripp IngleyLLP

Bunting, Tripp IngleyLLP Dear Clients and Friends, As the end of 2011 approaches, now is a good time to start year-end tax planning to minimize your individual and business tax burden. Generally, year-end tax planning involves

More information

business owner issues and depreciation deductions

business owner issues and depreciation deductions business owner issues and depreciation deductions Individuals who are owners of a business, whether as sole proprietors or through a partnership, limited liability company or S corporation, have specific

More information

2013 Year-End Tax Planning Letter

2013 Year-End Tax Planning Letter PLAN AHEAD 2013 Year-End Tax Planning Letter You are receiving this letter because your income tax rates have increased based on 2012 data. Please be sure to talk with your advisor to discuss anticipated

More information

2013 Year-End Tax Planning Advice

2013 Year-End Tax Planning Advice 2013 Year-End Tax Planning Advice To Our Clients and Friends, As we approach year-end, it s again time to focus on last-minute moves you can make to save taxes both on your 2013 return and in future years.

More information

REAL ESTATE OPERATIONS IN THE CORPORATE FORM -- WHEN DOES IT MAKE SENSE?

REAL ESTATE OPERATIONS IN THE CORPORATE FORM -- WHEN DOES IT MAKE SENSE? REAL ESTATE OPERATIONS IN THE CORPORATE FORM -- WHEN DOES IT MAKE SENSE? I. INTRODUCTION A. Historically real estate owned by partnership or limited partnership. B. Many circumstances favor the use of

More information

TAX CONSIDERATIONS BUSINESSES. Marty Verdick

TAX CONSIDERATIONS BUSINESSES. Marty Verdick TAX CONSIDERATIONS FOR SMALL BUSINESSES Marty Verdick RSM McGladrey, Inc. Overview of Topics General federal tax issues Federal tax incentives Entity selection tax issues State tax issues Sales & use tax

More information

TAX PROVISIONS IN THE AMERICAN TAXPAYER RELIEF ACT OF 2012 (ATRA) James Nunns and Jeffrey Rohaly Urban-Brookings Tax Policy Center January 9, 2013

TAX PROVISIONS IN THE AMERICAN TAXPAYER RELIEF ACT OF 2012 (ATRA) James Nunns and Jeffrey Rohaly Urban-Brookings Tax Policy Center January 9, 2013 TAX PROVISIONS IN THE AMERICAN TAXPAYER RELIEF ACT OF 2012 (ATRA) James Nunns and Jeffrey Rohaly Urban-Brookings Tax Policy Center January 9, 2013 ABSTRACT The fiscal cliff debate culminated in the passage

More information

Highlights of the 2010 Tax Relief Act

Highlights of the 2010 Tax Relief Act On December 7, 200, President Barack Obama signed into law H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 200 (the 200 Tax Relief Act). This massive bill affects

More information

Choice of Entity: Corporation or Limited Liability Company?

Choice of Entity: Corporation or Limited Liability Company? March 2014 Choice of Entity: Corporation or Limited Liability Company? By Gianfranco A. Pietrafesa* Attorney at Law There are many different types of business entities, including corporations, general

More information

Buyers and Sellers of an S Corporation Should Consider the Section 338 Election

Buyers and Sellers of an S Corporation Should Consider the Section 338 Election Income Tax Valuation Insights Buyers and Sellers of an S Corporation Should Consider the Section 338 Election Robert P. Schweihs There are a variety of factors that buyers and sellers consider when deciding

More information

NAR Frequently Asked Questions Health Insurance Reform

NAR Frequently Asked Questions Health Insurance Reform NEW MEDICARE TAX ON UNEARNED NET INVESTMENT INCOME Q-1: Who will be subject to the new taxes imposed in the health legislation? A: A new 3.8% tax will apply to the unearned income of High Income taxpayers.

More information

Illinois Institute for Continuing Legal Education. Limited Liability Companies vs. S Corporations. Essential Tax Issues

Illinois Institute for Continuing Legal Education. Limited Liability Companies vs. S Corporations. Essential Tax Issues Illinois Institute for Continuing Legal Education Limited Liability Companies vs. S Corporations Essential Tax Issues By James A. Nepple Nepple Law, PLC 1515 Fourth Avenue, Suite 300 Rock Island, Illinois

More information

Taxation of Carried Interest: What the Future Holds

Taxation of Carried Interest: What the Future Holds Taxation of Carried Interest: What the Future Holds Recent tax law changes have increased taxes in general on compensation received by managers of hedge funds and private equity funds through the implementation

More information

The New Tax Relief Act: How Will You Be Impacted?

The New Tax Relief Act: How Will You Be Impacted? STRATEGIC THINKING The New Tax Relief Act: How Will You Be Impacted? The President signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 ( the Act ) on December 17th,

More information

Tax Planning Circa 2011. The Rules We Live By

Tax Planning Circa 2011. The Rules We Live By Tax Planning Circa 2011 FPA Houston December 6, 2011 The Rules We Live By 2010 Tax Relief Act (December 17, 2010) Patient Protection and Affordable Care Act (PPACA) Hiring Incentives to Restore Employment

More information

Tax-Saving Opportunities for "Active" Business Owners

Tax-Saving Opportunities for Active Business Owners S CORPORATIONS Tax-Saving Opportunities for "Active" Business Owners S corporations now provide business owners with a unique opportunity to minimize earnings subject to both the recently imposed additional

More information

Business Tax Provisions of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010

Business Tax Provisions of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 Business Tax Provisions of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 On December 17, 2010, the president signed into law the Tax Relief, Unemployment Insurance

More information

The Act introduces a number of incentives, which address various aspects of the business enterprise.

The Act introduces a number of incentives, which address various aspects of the business enterprise. A DV I S O RY October 2010 Tax Provisions of the Small Business Jobs Act of 2010: Stimulating Investment and Entrepreneurship with US$12 Billion in Tax Incentives Paid for by Corresponding Revenue Raisers

More information

ADDITIONAL MEDICARE TAX ON EARNED INCOME

ADDITIONAL MEDICARE TAX ON EARNED INCOME Assisting Family Lawyers With Navigating the 2013 Tax Changes Under the Patient Protection Care Act (PPACA) and the Health Care and Education Reconciliation ACT (HCERA) On June 28, 2012, the United States

More information

H.R. 3970 Tax Reduction and Reform Act of 2007

H.R. 3970 Tax Reduction and Reform Act of 2007 H.R. 3970 Tax Reduction and Reform Act of 2007 I. INDIVIDUAL TAX RELIEF October 29, 2007 The combination of the general tax reductions below and full repeal of the individual alternative minimum tax (AMT)

More information

The Jobs and Growth Tax Relief Reconciliation Act of 2003: What Businesses and Investors Need to Know

The Jobs and Growth Tax Relief Reconciliation Act of 2003: What Businesses and Investors Need to Know VENTAPS: Venable Tax Policy Summary JUNE/JULY 2003 The Jobs and Growth Tax Relief Reconciliation Act of 2003: What Businesses and Investors Need to Know On May 28, 2003, President Bush signed into law

More information

Module 10 S Corporation/Corporation Study Guide Introduction

Module 10 S Corporation/Corporation Study Guide Introduction Module 10 Study Guide Introduction Running your own business presents many challenges. One of the most difficult is complying with complex and ever-changing tax laws. This small-business tax education

More information

Jon Persky, CPA, CIC, PHR Optimum Performance Solutions, LLC 813-835-7337 jon@optperform.com www.optperform.com

Jon Persky, CPA, CIC, PHR Optimum Performance Solutions, LLC 813-835-7337 jon@optperform.com www.optperform.com Jon Persky, CPA, CIC, PHR Optimum Performance Solutions, LLC 813-835-7337 jon@optperform.com www.optperform.com EBITDA Multiplier? 10x $500,000 = $5 million 5x $1million = $5 million EBITDA Dollar Amount?

More information

The American Jobs Creation Act of 2003

The American Jobs Creation Act of 2003 The American Jobs Creation Act of 2003 Summary of H.R. 2896 as passed by Committee The proposed mark provides $140 billion of tax relief over ten years. However, the net cost of the proposed mark is $60

More information

ENTITY CHOICE AND EFFECTIVE TAX RATES

ENTITY CHOICE AND EFFECTIVE TAX RATES ENTITY CHOICE AND EFFECTIVE TAX RATES Prepared by Quantria Strategies, LLC for the National Federation of Independent Business and the S Corporation Association ENTITY CHOICE AND EFFECTIVE TAX RATES CONTENTS

More information

Presented By: Tracy Monroe, CPA, MT

Presented By: Tracy Monroe, CPA, MT Presented By: Tracy Monroe, CPA, MT Tax extenders for individuals Tax planning Ohio update On December 18, 2015 the President signed the Protecting Americans from Tax Hikes (PATH Act): Extended many expired

More information

Akerman Practice Update

Akerman Practice Update Akerman Practice Update TAXATION December 2010 2010 Tax Relief Act Will Preserve Lower Income Tax Rates and Provide Other Tax Incentives L. Frank Cordero frank.cordero@ Richard T. Hurt richard.hurt@ William

More information

IRS Issues Reliance Proposed Regulations On Some Net Investment Income Tax Issues. Background

IRS Issues Reliance Proposed Regulations On Some Net Investment Income Tax Issues. Background /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Special Report Series on Section 1411

More information

Instructions for Completing Wisconsin Schedule I 2014

Instructions for Completing Wisconsin Schedule I 2014 NOTE An individual who elects to claim a different amount of Internal Revenue Code sec. 179 expense deduction for Wisconsin than for federal tax purpose may use Schedule I to report that election. For

More information

Incorporating Your Business

Incorporating Your Business CorpNet s Guide to: Incorporating Your Business TM www.corpnet.com Congratulations! You have decided to start your own business. That is a courageous step and one that can lead to rewards that no job can

More information

CUNA Issue Summary SUBCHAPTER S CORPORATION BANKS

CUNA Issue Summary SUBCHAPTER S CORPORATION BANKS CUNA Issue Summary SUBCHAPTER S CORPORATION BANKS ISSUE: Subchapter S was added to the Internal Revenue Code in 1958 to reduce the tax burden on small business. It has allowed businesses, primarily small

More information

Summary of the Small Business Jobs Act June 29, 2010

Summary of the Small Business Jobs Act June 29, 2010 Provisions to Promote Access to Capital Summary of the Small Business Jobs Act June 29, 2010 100% Exclusion of Small Business Capital Gains. Generally, non-corporate taxpayers may exclude 50 percent of

More information

2011 IRS Tax Law Updates

2011 IRS Tax Law Updates 2011 IRS Tax Law Updates IRS Texas New Mexico Regional Practitioner Meeting 2011 Stakeholder Liaison, Field May - July 2011 Small Business Health Care Tax Credit Eligibility Rules Providing health care

More information

Crunch or Crucible? Upcoming Changes in the Federal Tax Law A Special Edition Tax Guide for Friends and Alumni of Pomona College

Crunch or Crucible? Upcoming Changes in the Federal Tax Law A Special Edition Tax Guide for Friends and Alumni of Pomona College Upcoming Changes in the Federal Tax Law A Special Edition Tax Guide for Friends and Alumni of Pomona College Pomona College, Office of Trusts & Estates, 550 N. College Ave., Claremont, CA 91711 www.pomona.planyourlegacy.org

More information

Small Business and Work Opportunity Act of 2007 January 12, 2007

Small Business and Work Opportunity Act of 2007 January 12, 2007 Small Business and Work Opportunity Act of 2007 January 12, 2007 Small Business Incentives Section 179 Small Business Expensing. In lieu of depreciation, small business taxpayers may elect to deduct (or

More information

Non-Financial Assets Tax and Other Special Rules

Non-Financial Assets Tax and Other Special Rules Wealth Strategy Report Non-Financial Assets Tax and Other Special Rules OVERVIEW Because unique attributes distinguish them from other asset classes, nonfinancial assets may offer you valuable financial

More information

Enhance and permanently extend the research tax credit, and increase the rate of the alternative simplified research credit (ASC) from 14% to 17%.

Enhance and permanently extend the research tax credit, and increase the rate of the alternative simplified research credit (ASC) from 14% to 17%. This update covers some of the provisions being suggested in the President s new budget for fiscal year 2015. I ve highlighted the items that are of greatest importance. 2015 Tax Proposals For Businesses

More information

GAO Work on Efforts to Reduce Tax Evasion and Tax Fraud Prepared for the Internal Revenue Service Oversight Board Public Meeting May 1, 2013

GAO Work on Efforts to Reduce Tax Evasion and Tax Fraud Prepared for the Internal Revenue Service Oversight Board Public Meeting May 1, 2013 United States Government Accountability Office Washington, DC 20548 GAO Work on Efforts to Reduce Tax Evasion and Tax Fraud Prepared for the Internal Revenue Service Oversight Board Public Meeting May

More information

Choosing the Right Entity for Maximum Tax Benefits for Your Construction Company

Choosing the Right Entity for Maximum Tax Benefits for Your Construction Company Choosing the Right Entity for Maximum Tax Benefits for Your Construction Company Timely re-evaluation of choice of entity will enhance the shareholder value of your contractor client By Theran J. Welsh

More information

Tax Aspects of Buy-Sells

Tax Aspects of Buy-Sells Tax Aspects of Buy-Sells By Charles A. Wry, Jr. mbbp.com Business Technology & IP Employment & Immigration Taxation 781-622-5930 Reservoir Place 1601 Trapelo Road, Suite 205 Waltham, MA 02451 781-622-5930

More information

2015 YEAR-END TAX PLANNING NEWSLETTER

2015 YEAR-END TAX PLANNING NEWSLETTER 2015 YEAR-END TAX PLANNING NEWSLETTER Dear Client: As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next.

More information

timing is everything One issue in an array of decisions involving capital Taxes TAX PLANNING FOR CAPITAL ASSET DISPOSAL IS COMPLEX YET NECESSARY.

timing is everything One issue in an array of decisions involving capital Taxes TAX PLANNING FOR CAPITAL ASSET DISPOSAL IS COMPLEX YET NECESSARY. timing is everything Taxes TAX PLANNING FOR CAPITAL ASSET DISPOSAL IS COMPLEX YET NECESSARY. B Y D A VID J OY, C PA ; S TEPHEN C. DEL V ECCHIO, C PA ; B. DOUGLAS C LINTON, C PA ; AND J AMES C. YOUNG, C

More information

Congress passes 2012 Taxpayer Relief Act and averts fiscal cliff tax consequences

Congress passes 2012 Taxpayer Relief Act and averts fiscal cliff tax consequences We will continue to expand on the provisions of the taxpayer relief act as more information becomes available. If you have any questions please feel free to contact us. Congress passes 2012 Taxpayer Relief

More information

Congress Begins Work on ETI Replacement Legislation (08/01/03)

Congress Begins Work on ETI Replacement Legislation (08/01/03) Congress Begins Work on ETI Replacement Legislation (08/01/03) Prior to the start of a month-long August recess, the House and Senate tax-writing committees began consideration of potential solutions to

More information

Tax Items For Businesses Ohio Tax Law Changes

Tax Items For Businesses Ohio Tax Law Changes FRUSH & ASSOCIATES, INC. OVERVIEW Recap of 2013 ACA Act NII Surtax Medicare Wage Surtax Tax Items For Businesses Ohio Tax Law Changes Circular 230 Disclosure Pursuant to the rules of professional conduct

More information

Individual income tax

Individual income tax International Tax Puerto Rico Tax Alert 12 June 2015 Tax reform enacted Contacts Francisco A. Castillo fcastillo@deloitte.com Ricardo Villate rvillate@deloitte.com Michelle Corretjer mcorretjer@deloitte.com

More information

Tax Law Snapshot for Small Businesses 2014 Filing Season

Tax Law Snapshot for Small Businesses 2014 Filing Season Tax Law Snapshot for Small Businesses 2014 Filing Season As the economy recovers, you want to position your business for growth. By combining unrivaled education, training and experience and adherence

More information

United States Corporate Income Tax Summary

United States Corporate Income Tax Summary United States Corporate Income Tax Summary SECTION 1: AT A GLANCE CliftonLarsonAllen LLP 222 Main Street, PO Box 1347 Racine, WI 53401 262-637-9351 fax 262-637-0734 www.cliftonlarsonallen.com Corporate

More information

2014 Year-End Tax Planning Client Letter

2014 Year-End Tax Planning Client Letter 2014 Year-End Tax Planning Client Letter Year-end tax planning is especially challenging this year because Congress has yet to act on several tax breaks that expired at the end of 2013. Some of these tax

More information

Most of ATRA s provisions benefit individual taxpayers through extensions of lower tax rates, certain deductions 10% 10% 15% 15% 25% 25% 28% 28%

Most of ATRA s provisions benefit individual taxpayers through extensions of lower tax rates, certain deductions 10% 10% 15% 15% 25% 25% 28% 28% TAX ACT OVERVIEW American Taxpayer Relief Act saves taxes for many, boosts them for some On Jan. 1, Congress passed the American Taxpayer Relief Act of 2012 (ATRA) to address the fiscal cliff a combination

More information

INCENTIVE STOCK OPTIONS, NONQUALIFIED STOCK OPTIONS AND CASH COMPENSATION PROGRAMS

INCENTIVE STOCK OPTIONS, NONQUALIFIED STOCK OPTIONS AND CASH COMPENSATION PROGRAMS WILLIAM C. STALEY BUSINESS PLANNING JUNE 2005 INCENTIVE STOCK OPTIONS, NONQUALIFIED STOCK OPTIONS AND CASH COMPENSATION PROGRAMS This bulletin reviews the federal income tax differences among incentive

More information

Chapter 18. Corporations: Distributions Not in Complete Liquidation. Eugene Willis, William H. Hoffman, Jr., David M. Maloney and William A.

Chapter 18. Corporations: Distributions Not in Complete Liquidation. Eugene Willis, William H. Hoffman, Jr., David M. Maloney and William A. Chapter 18 Corporations: Distributions Not in Complete Liquidation Eugene Willis, William H. Hoffman, Jr., David M. Maloney and William A. Raabe Copyright 2004 South-Western/Thomson Learning Taxable Dividends

More information

TAX REFORM: SELECTED FEDERAL TAX ISSUES RELATING TO SMALL BUSINESS AND CHOICE OF ENTITY

TAX REFORM: SELECTED FEDERAL TAX ISSUES RELATING TO SMALL BUSINESS AND CHOICE OF ENTITY TAX REFORM: SELECTED FEDERAL TAX ISSUES RELATING TO SMALL BUSINESS AND CHOICE OF ENTITY Scheduled for a Public Hearing Before the SENATE COMMITTEE ON FINANCE on June 5, 2008 Prepared by the Staff of the

More information

Multistate Impact of the American Taxpayer Relief Act of 2012 March 5, 2013

Multistate Impact of the American Taxpayer Relief Act of 2012 March 5, 2013 Multistate Tax EXTERNAL ALERT Multistate Impact of the American Taxpayer Relief Act of 2012 March 5, 2013 Overview On January 2, 2013, President Barack Obama signed into law the American Taxpayer Relief

More information

02/14/12. Small Business Tax Saving Strategies for the 2012 Filing Season. Advice for Small Businesses from CPAs. Expenses: Section 179 Deduction

02/14/12. Small Business Tax Saving Strategies for the 2012 Filing Season. Advice for Small Businesses from CPAs. Expenses: Section 179 Deduction Small Business Tax Saving Strategies for the 2012 Filing Season Updated December 12, 2011 Advice for Small Businesses from CPAs Tax incentive opportunities for small businesses in 2011 and 2012: - Expense-related

More information

S Corporation vs. LLC in California Here is an overview of the differences between doing business as an S corporation or as an LLC.

S Corporation vs. LLC in California Here is an overview of the differences between doing business as an S corporation or as an LLC. S Corporation vs. LLC in California Here is an overview of the differences between doing business as an S corporation or as an LLC. After you have read this article, we can discuss in detail what would

More information

Valuation of S-Corporations

Valuation of S-Corporations Valuation of S-Corporations Prepared by: Presented by: Hugh H. Woodside, ASA, CFA Empire Valuation Consultants, LLC 777 Canal View Blvd., Suite 200 Rochester, NY 14623 Phone: (585) 475-9260 Fax: (585)

More information

Choice of Entity: Corporation or Limited Liability Company?

Choice of Entity: Corporation or Limited Liability Company? September 2012 Choice of Entity: Corporation or Limited Liability Company? By Gianfranco A. Pietrafesa* Attorney at Law There are many different types of business entities, including corporations, general

More information

Randall A. Lenz CORPORATION/S-CORPORATION TAX ORGANIZER (1120, 1120S) COMPREHENSIVE

Randall A. Lenz CORPORATION/S-CORPORATION TAX ORGANIZER (1120, 1120S) COMPREHENSIVE Randall A. Lenz Attorney-at-Law Certified Public Accountant 199 14 th Street, NE Suite 1907 Atlanta, Georgia 30309-3688 (404) 815-1731, Cell (404) 323-1731, FAX (404) 815-0717 rlenz@atl.mindspring.com

More information

Cutting Edge Tax Planning Developments & Opportunities

Cutting Edge Tax Planning Developments & Opportunities Cutting Edge Tax Planning Developments & Opportunities 08.03.2015 United Capital Webinar Michael E. Kitces MSFS, MTAX, CFP, CLU, ChFC, RHU, REBC, CASL Partner. Director of Research, Pinnacle Advisory Group

More information

Here is a quick summary of most-important tax changes starting with those that affect individuals. Payroll Tax Holiday Is Dead (So Far)

Here is a quick summary of most-important tax changes starting with those that affect individuals. Payroll Tax Holiday Is Dead (So Far) Dear Clients: The American Taxpayer Relief Act of 2012 (better known as the fiscal cliff legislation) became law on 1/2/13. Due to the expiration of the so-called payroll tax holiday, all workers will

More information

Final IRS Regulations on Net Investment Income Results in Good News for Farmers in Many Situations

Final IRS Regulations on Net Investment Income Results in Good News for Farmers in Many Situations 2321 N. Loop Drive, Ste 200 Ames, Iowa 50010 www.calt.iastate.edu Final IRS Regulations on Net Investment Income Results in Good News for Farmers in Many Situations by Paul Neiffer with CliftonLarsonAllen

More information

What You Do Today Shapes Your Profits Tomorrow Top 10 Reasons to Start Tax Planning Now

What You Do Today Shapes Your Profits Tomorrow Top 10 Reasons to Start Tax Planning Now What You Do Today Shapes Your Profits Tomorrow Top 10 Reasons to Start Tax Planning Now Few business sectors embody today s entrepreneurial spirit, drive for innovation and unwavering perseverance more

More information

New Legislation Enhances the Benefits of a Section 1042 Tax-Deferred Sale

New Legislation Enhances the Benefits of a Section 1042 Tax-Deferred Sale ESOP Transaction Insights New Legislation Enhances the Benefits of a Section 1042 Tax-Deferred Sale Michael R. Holzman, Esq., and Christopher T. Horner II, Esq. Recent legislation increased the income

More information

Real Estate. Presenter: Raymond Evans Date: May 15, 2012

Real Estate. Presenter: Raymond Evans Date: May 15, 2012 Capital Gains and Commercial Real Estate Presenter: Raymond Evans Date: May 15, 2012 May 15, 2012 Slide 1 Current Law to December 31, 2012 Holding Period Character of Income Tax Rates N/A Ordinary 10%

More information