Fracking In a Letter Ruling the IRS ruled that income from a hydraulic fracturing (fracking) activity is qualifying income for tax purposes when earned by a Publicly Traded Partnership. Under the Internal Revenue Code, a publicly traded partnership is treated…
Introduction In a time of transition in this country, it is unfortunate that the average small business owner knows little or nothing about valuing their business. Many believe they can take a multiple of their company’s annual profits (derived from…
Q: I am exchanging property in a 1031 “like-kind-exchange”. Can I exchange my one property for more than one property? A: Yes. As long as the property being exchanged is within the same class, you may exchange the property for more…
Most business owners are vaguely aware that Employee Stock Ownership Plans (ESOP’s) can provide substantial tax advantages when they approach retirement, but they don’t have a clear idea of how ESOP’s work, nor do they realize how ESOP companies typically…
Trustees Liable for Taxes A District Court ruled that trustees of an estate were liable for unpaid estate taxes. In the fact pattern, the estate came about when the decedent died in 1992, leaving behind large insurance policies and a…
Introduction Last month, we examined the selection of which entity to choose from based on the perspective of the proprietor through the lens of the Limited Liability Company. To recap last month’s conclusion: “Limited Liability Companies are becoming more popular. …
Q: Now that the Supreme Court has upheld The Patient Protection and Affordable Care Act, how will this affect my business in the years to come? A: First off, the PPACA is a law that is workable for business owners…
Employee Stock Ownership Plans (ESOP) have been around for 35 years, and many well known, national companies have them, but many misconceptions still exist, such as: (1) Employees will directly own the company’s stock [FALSE], or (2) Employees will directly…
Introduction For the closely-held business, choosing a business entity under which to operate used to be easy. The proprietor usually operated as a sole proprietorship, a partnership, or as an S Corporation. There were clear advantages and disadvantages to each…
IRA Beneficiary In a private letter ruling, the IRS has restated that the beneficiary of an individual retirement account (IRA) must be identifiable “without qualification” in order to avoid the application of the five year distribution rule for a required…
