S corporations are pass through entities, but lack the flexibility of partnerships. When more than 20% of the stock of an S corporation is sold, the issue arises as to how to account for income to the shareholders during the year. The default rule is to wait until the the end of the year, determine …
The common wisdom is to select an LLC for a new business. That wisdom needs to be scrutinized. Sure forming an LLC is easy. Generally, the filing fees are less than a corporation, and the documentation is less complicated. While the LLC may remain the best choice for an investment, it can create issues for …
Contained in the TCJA, qualified opportunity zones are a new tax incentivized investment vehicle aimed at encouraging investment in low-income housing. Here are the highlights: If a taxpayer has a realized capital gain, taxpayer can invest the gain in a Qualified Opportunity Fund within 180 days and defer the capital gain. A Qualified Opportunity Fund …
Many times we shy away from doing the hard things that we need to do to improve. For example, in golf everyone is trying to get more distance. Many try to get there by getting a super light driver or buy the latest get long quick training aid. In reality, you get longer by training …
On August 8, 2018 the Treasury issued proposed regulations under Code Section 199A, a provision that was part of the 2017 tax act that provides a 20% deduction on “qualified business income.” Code Section 199A is a very complex provision, but every business owner needs to be advised as to whether it applies to the …
Newly Issued Proposed Regulations under Code Section 199A Read More »
Golf break: A more sophisticated way to work the ball. I give credit to instructor John Erickson for teaching me this.
The legal role of the probate lawyer is to admit the decedent’s will to probate, advise the newly appointed executor on their responsibilities and duties, help the executor inventory all of the assets of the decedent’s estate, settle debts and distribute the assets to the beneficiaries named in the will. Of course, numerous legal issues …
Many times I have the family of the second spouse contact me regarding probate of his or her estate. As I discuss the matter I learn that the first spouse died years earlier, and, since everything passed to the second spouse, no probate was done for the first spouse. While this isn’t an insurmountable problem, …
It is golf season again, and I am getting out to the range a bit with my “old stuff.” I know…why are you hitting that? The new clubs are so much easier to hit. Sure I enjoy playing the new stuff, but I always go back to the old stuff. The new gear seems to …
One of the changes made by the new tax act was to increase the standard deduction to $12,000 or $24,000 for a married couple filing jointly. The upshot of that will be that many people will claim the standard deduction rather than itemize. If they make any charitable contributions but total itemized deductions are still …