Archives: Tax

Subscribe to Tax RSS Feed

CRESCENT HOLDINGS: An Issue of First Impression for Partners with Capital Interests

Photo of Ashley ThompsonBy Ashley Thompson and Theodore Gelt on Posted in Income Tax, Tax
On December 2, 2013, the United States Tax Court issued an opinion in Crescent Holdings, LLC v. Commissioner, 141 T.C. No. 15.  This opinion affects individuals who receive a non-vested capital interest in a partnership.  In what it states was an issue of first impression, the Tax Court held that income of the partnership that … Continue Reading

IRS “Wealth Squad” – Something to Keep in Mind During Tax Season

By Joseph Verciglio on Posted in Estate Planning, Estate Tax, Income Tax, Tax
The IRS Global High Wealth Industry (“GHWI”) (part of the IRS Large Business & International Division) is auditing individuals with tens of millions of assets or income who utilize complicated financial and estate plan structures.  GHWI was established by the IRS in late 2009, but now has a few years of service “under its belt”.  … Continue Reading

‘Tis the Season – For Year-End Charitable Giving

Photo of Ellen E. HalfonBy Ellen E. Halfon on Posted in Estate Planning, Estate Tax, Income Tax, Tax
Most people make the bulk of their charitable contributions during the year-end holiday season.  This post summarizes some of the charitable giving ideas and opportunities, as well as some planning reminders, that donors may want to consider: Gifts of Appreciated Securities Many people have benefited this year from the surge in the investment markets.   Appreciated marketable … Continue Reading

May I Pay Your Taxes?: Colorado Enacts a New Grantor Reimbursement Statute

By Daniela Ronchetti on Posted in Estate Planning, Income Tax, Tax, Trust Administration
Grantor trusts are a powerful tool in estate planning in part because they facilitate depletion of the grantor’s estate by the grantor’s payment of income taxes attributable to the trust.  There may be circumstances, however, when the grantor is no longer in a position to bear some part or all of the trust’s tax burden, … Continue Reading

Careful Estate Planning Required When Transferring S Corporation Shares to Trusts

Photo of Chad MakuchPhoto of Lisa Roberts-MamoneBy Chad Makuch, Dana Andrassy and Lisa Roberts-Mamone on Posted in Estate Planning, Tax, Trust Administration
S corporation shareholders must be careful not to inadvertently terminate their closely held company’s S election when engaging in estate planning. Closely-held entities, which choose not to be formed as a partnership or limited liability corporation, often elect to be taxed as an S corporation under the Internal Revenue Code to avoid the double taxation … Continue Reading

Beware: Active Participation of S-Corporation Trustee Shareholder is Required – Technical Advice Memorandum 201317010

Photo of Christopher FidlerBy Christopher Fidler on Posted in Estate Planning, Tax, Trust Administration
Differing points of view have arisen regarding determining the active participation of S-Corporation shareholdings held in Trust.  The uncertainty centers on IRC § 469. Section 469 defines a passive activity as any activity that involves the conduct of any trade or business in which the taxpayer does not materially participate, and the section specifically includes … Continue Reading

Public Concerns Lead IRS to Offer Expedited Process for New Social Welfare Organizations

Photo of Edward BeckwithBy Edward Beckwith on Posted in Tax
A wide array of organizations can qualify to be recognized as exempt from federal income taxes.  Most noted of late are those organizations which are structured to “promote social welfare” and which can seek tax-exempt status under section 501(c)(4) of the Internal Revenue Code (“IRC”).   While the operative statutory language states such organizations must be … Continue Reading

Planning for Carried Interests & Avoiding Section 2701

By Michael Stiff on Posted in Estate Planning, Tax
Alternative investments in private equity and hedge funds have gained in popularity over the last two decades and have become a regular allocation of many investment portfolios. During this period, significant wealth has been generated and continues to be generated by the fund managers. There are some unique opportunities available to these fund managers and … Continue Reading

U.S. Supreme Court Rules DOMA Unconstitutional in Estate Tax Case

Photo of Chad MakuchBy Chad Makuch on Posted in Estate Planning, Estate Tax, Tax
The Supreme Court has held that the Defense of Marriage Act (“DOMA”) is unconstitutional.  DOMA defined “marriage” and “spouse” to the exclusion of same-sex partners for purposes of federal law.  As a result, same-sex partners (even those legally married or otherwise legitimized under state law) were not considered married or to be spouses for purposes … Continue Reading

The Proliferation of Trust Decanting Statutes Continues

Photo of Chad MakuchBy Chad Makuch on Posted in Estate Planning, Tax, Trust Administration
Irrevocable trusts are now subject to varying degrees of amendment by court approved modifications, trust protector actions, private settlement agreements, and, of course, decanting.  Effective July 1, 2013, Wyoming will become the nineteenth state (and the ninth state since 2010) to permit trust decanting by statute.  Decanting refers to the distribution of trust property of … Continue Reading

Is Tax Law Ever Permanent?

By Jennifer Eschedor on Posted in Tax
According to dictionary.com, permanent means “existing perpetually; everlasting, especially without significant change.” However, for federal tax law purposes, something is “permanent” only so long as Congress and the President do not act to change it.  Take, for instance, the “basic exclusion amount” for federal gift and estate tax purposes.  This is the amount that a … Continue Reading

BakerHostetler’s 24th Annual Tax, Budget and Health Care Policy Seminar

Photo of Christopher FidlerBy Christopher Fidler on Posted in Tax
Registration remains open for BakerHostetler’s 24th Annual Tax, Budget and Health Care Policy Seminar taking place on Wednesday, June 12, 2013 in Washington, DC.  The emphasis of this conference is to provide insight to enable business owners and decision makers to effectively plan for tax and health care costs affecting businesses.  For those responsible for … Continue Reading
LexBlog