The Tax Court has partially upheld the discounts applied in the valuation of two closely held companies for estate tax purposes. In the case, when the decedent died she held a 43% interest and 23% interest in two closely held…
The Tax Court has partially upheld the discounts applied in the valuation of two closely held companies for estate tax purposes. In the case, when the decedent died she held a 43% interest and 23% interest in two closely held…
Q: I am the owner of an S Corporation. If in any given year I do not take any money out of the company, will I have to pay taxes on the income from the business? A: S Corporations are…
I am indebted to Michael Dreyer, Financial Representative with Northwestern Mutual for contributing the following article on the advantages and benefits of annuities. Many business owners have had plans for years to sell their business and use the proceeds to…
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…
