A recent tax court case serves as a stern reminder to practitioners that (1) in order for a trust to qualify as a charitable remainder annuity trust (CRAT), the trust’s governing instrument must unambiguously provide for a...more
The Arkansas Uniform Fiduciary Income and Principal Act (the “Act”) became effective on January 1, 2022. Arkansas is one (1) of five (5) states, including Colorado, Kansas, Utah, and Washington, that has enacted the Uniform...more
Is it principal or it is income? This question has plagued trust beneficiaries, trustees, accountants, and attorneys since trusts have been used. The answer to the question is important, because the answer generally controls...more
Facing mortality does not come easily to anyone, but particularly not for college-aged students or young adults. As a result, many young people, to the extent they think about estate planning at all, mistakenly assume that...more
As it relates to individuals, one of the more controversial aspects of the 2017 revenue act (commonly referred to as the “Tax Cuts and Jobs Act") is the $10,000 cap on itemized deductions for state and local taxes. ...more
11/15/2019
/ Exceptions ,
Income Taxes ,
Investment Property ,
Itemized Deductions ,
Local Taxes ,
Property Tax ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Trump Administration ,
Vacant Properties
A limited liability company (an “LLC”) is a business structure created by state statute, but it is not a distinct business entity for tax purposes (like a partnership or a corporation). Instead, businesses structured as LLCs...more
5/7/2019
/ C-Corporation ,
Corporate Taxes ,
Internal Revenue Code (IRC) ,
Limited Liability Company (LLC) ,
Membership Interest ,
Operating Agreements ,
Partnerships ,
Private Letter Rulings ,
Regulatory Standards ,
S-Corporation ,
Share Classes
IRS Rules Appointment of Special Trustee and Special Trustee’s Subsequent Exercise of Power to Limit or Eliminate Trust Beneficiary’s Testamentary General Power of Appointment Will Not Constitute Exercise or Release for...more
11/7/2018
/ Beneficiaries ,
Death Benefits ,
Estate Planning ,
Estate Tax ,
IRS ,
Power of Appointment ,
Private Letter Rulings ,
Testamentary Trust ,
Trustees ,
Trusts ,
Wills
By now, we all know that major tax legislation was passed in December of 2017. The 2017 revenue act (the “2017 Tax Act”) is officially titled “An Act to provide for reconciliation pursuant to titles II and V of the concurrent...more
5/2/2018
/ Adjusted Gross Income ,
Family Businesses ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Low-Income Issues ,
Minor Children ,
Minors ,
Tax Cuts and Jobs Act ,
Tax Planning ,
Tax Rates ,
UTMA
In an effort to comply with the increasing complexity of the Internal Revenue Code (the “Code”) and the regulations promulgated thereunder, many taxpayers are looking to tax preparation software for assistance in preparing...more
11/7/2017
/ Corporate Understatements ,
E-Filing ,
Financial Statements ,
Good Faith ,
Income Taxes ,
IRS ,
Reasonable Cause Defense ,
Section 6662 ,
Tax Court ,
Tax Penalties ,
Tax Returns ,
Treasury Regulations ,
TurboTax ,
Underpayment