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The opportunity to sell a business that you have built can be a lifechanging event. There are a number of planning ideas that should be considered before there is a binding contract in place. If you business is a candidate for the Section 1202 small business stock exclusion, you should be made aware of that …
Now is the time to do asset protection and estate planning. The exemptions will sunset on 01/01/2026. The exemption is currently about $13M, but will fall to an inflation adjusted $5M on 01/01/2026 if the exemptions are allowed to fall. If we have divided government, then it is likely that the exemptions will sunset. We …
SUMMARY: THE INFLATION REDUCTION ACT OF 2022The Inflation Reduction Act of 2022 will make a historic down payment on deficit reduction tofight inflation, invest in domestic energy production and manufacturing, and reduce carbonemissions by roughly 40 percent by 2030. The bill will also finally allow Medicare to negotiatefor prescription drug prices and extend the expanded …
1202 is a little know or understood provision of the Internal Revenue Code that excludes the greater of (1) $10M or (2) ten times basis in original issue stock. To qualify for 1202, the company must be a C corporation and have aggregate assets of $50M or less at stock issuance. The investor must acquire …
The Little Known 1202 Small Business Stock Exclusion Read More »
While each situation is different, I think in most cases, the decedent should keep his family informed of his or her estate plan. If the decedent wants to treat his children or others differently, the decedent should communicate with that family member why. It may be because a family member has special needs or it …
As I write this, Senate Democrats have made a reconciliation proposal. Word is that not all Senate Democrats are on board yet, but this is their one shot and I expect something will get done. My contacts in DC think that reduction in the exemption will be part of the bill, but don’t know if …
The recently enacted Secure Act, eliminates the life time stretch of retirement assets for non-spouse beneficiaries, with a few exceptions. Instead, these assets will now be taxed within ten years. For the charitably minded client, one idea being touted is a charitable remainder unitrust (CRT). Based on materials I have seen, the ideal payout rate …
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 …
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 »