Introduction There are four documents essential in creating a successful estate plan: a Last Will and Testament, a Living Will, a Living Trust and a Power of Attorney. Each one operates independently of the other, yet they are interrelated. All…
Introduction There are four documents essential in creating a successful estate plan: a Last Will and Testament, a Living Will, a Living Trust and a Power of Attorney. Each one operates independently of the other, yet they are interrelated. All…
In a Revenue Ruling, the IRS has found that an S Corporation’s accumulated adjustments account (AAA) is not increased by insurance proceeds received by the corporation for the death of an employee if such proceeds are not taxable. Conversely, the…
Q: If I own a business, what should I have to preserve my business for future generations? A: In order to keep a business running after the death of an owner, a complete business succession plan must be in place. …
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 A buy-sell agreement is the most important legal document a closely-held or family business can hold. Without a buy-sell agreement, businesses face peril upon a triggering event such as an owner’s death, incapacitation, divorce, filing bankruptcy, desire to sell,…
A United States District Court found a commercial tax return preparer not liable for a violation of improper disclosure. In the case, a taxpayer alleged that her commercial tax return preparer threw her 2005 federal and state tax returns in…
Q: In the past, you have talked about buy-sell agreements. Is there a “best way” to value a business for purposes of a buy-sell agreement? A: Unfortunately, for business owners, there is no one size fits all method of business…
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 In the past, assessment and submission of state sales taxes was easy. Merchants would add on the required state sales tax to the purchase, that amount would be collected, and the merchant would submit the required amount to the…
The Tax Court ruled that a minority interest discount and lack of marketability discount applied to the valuation of a family limited partnership (FLP) interest. In the case, the decedent, daughter, and son-in law formed an FLP and a limited…
