You may have heard or even read about the U.S. Supreme Court’s recent decision regarding the date of death value of a deceased shareholder’s shares in a closely held corporation that owned a life insurance policy on the...more
7/1/2024
/ Business Succession ,
Buy-Sell Agreements ,
Buyouts ,
Certiorari ,
Closely Held Businesses ,
Connelly v United States ,
Estate Tax ,
Fair Market Value ,
IRS ,
Liability ,
Life Insurance ,
Liquidity ,
Redemption Agreement ,
Right of Redemption ,
SCOTUS ,
Shareholders ,
Tax Audits
Earlier this week the White House released its Fiscal Year 2025 Budget. Of course, the federal government has not yet adopted a budget for the Fiscal Year 2024 even as we approach that year’s halfway mark. But I digress. The...more
3/18/2024
/ Capital Gains ,
Estate Tax ,
Exclusions ,
Fair Market Value ,
Federal Budget ,
Fiscal Year ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Grantor Trusts ,
Grantors ,
GST ,
IRS ,
Reporting Requirements ,
Revocable Trusts ,
Tax Credits ,
Tax Deferral ,
Tax Increases ,
Tax Revenues ,
Transfer Taxes ,
Trusts ,
U.S. Treasury ,
Valuation
This is The End-
I have dreaded the year end for as long as I can remember. As a teenager and then as a young adult I associated the final quarter of the year, and especially the period beginning on Thanksgiving and...more
12/20/2023
/ Business Ownership ,
Capital Gains ,
Carried Interest ,
Closely Held Businesses ,
Estate Tax ,
Federal Taxes ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Income Taxes ,
Investors ,
IRS ,
Tax Cuts and Jobs Act ,
Tax Planning ,
Transfer Taxes ,
Trusts ,
U.S. House
It’s not enough for the founder of a closely held business to have successfully established the business. The business has to grow, not only to increase profits, but also to make it more competitive and to diversify its...more
11/6/2023
/ Bypass Trusts ,
Closely Held Businesses ,
Disclaimers ,
Estate Planning ,
Estate Tax ,
Executors ,
Fair Market Value ,
Family Businesses ,
Gift Tax ,
Irrevocable Trusts ,
IRS ,
Marital Trusts ,
Personal Liability ,
QTIP Trusts ,
Surviving Spouse ,
Tax Liability ,
Taxation ,
Transfer Taxes ,
Trustees ,
Trusts
Death of a Parent-
In the context of a family-owned business, it is often the case that the matriarch or patriarch of the family is also the chief executive of the business. They may have founded the business, or they may...more
8/11/2023
/ Closely Held Businesses ,
Estate Planning ,
Estate Tax ,
Family Businesses ,
Heirs ,
Insolvency ,
Internal Revenue Code (IRC) ,
IRS ,
Spouses ,
Surviving Spouse ,
Tax Court ,
Tax Liability ,
Tax Liens ,
Tax Returns ,
Transfer Taxes ,
Trusts
Estate Tax – It’s a Killer-
One of the reasons often given for eliminating the estate tax is the substantial economic burden it places upon the estate of a deceased business owner and upon the business itself. Specifically,...more
6/16/2023
/ Acceleration ,
Adjusted Gross Income ,
Business Assets ,
Business Ownership ,
Closely Held Businesses ,
Deceased ,
Decedent Protection ,
Estate Tax ,
Fair Market Value ,
Gift Tax ,
Installment Agreements ,
Irrevocable Life Insurance Trusts ,
IRS ,
Life Insurance ,
Redemption Agreement ,
Stock Ownership ,
Stock Purchase Agreement ,
Tax Liability ,
Testamentary Transfers
On March 20, 2023, Senators Warren, Sanders, Van Hollen, and Whitehouse addressed a letter to Treasury Secretary Yellen in which they urged Yellen “to use [her] existing authority to limit the ultra-wealthy’s abuse of trusts...more
4/11/2023
/ AFR ,
Estate Tax ,
Fair Market Value ,
Gift Tax ,
Grantor Trusts ,
Heirs ,
Irrevocable Trusts ,
IRS ,
Tax Avoidance ,
Tax-Free Transfers ,
Trusts ,
U.S. Treasury
The Budget and Accounting Act of 1921 established the requirement that the President submit a budget to Congress for the upcoming fiscal year. Among other things, the proposed federal budget affords the President an...more
3/13/2023
/ C-Corporation ,
Capital Gains ,
Estate Tax ,
Federal Budget ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Grantor Trusts ,
IRS ,
Joe Biden ,
NIIT ,
S-Corporation ,
Tax Deferral ,
Tax Increases ,
Tax Rates
There have been some interesting developments of late with respect to the ownership of real property in parts of the English-speaking world. For example, Canada has imposed a temporary ban on the purchase of such property by...more
2/22/2023
/ Beneficial Owner ,
Beneficiaries ,
Canada ,
Corporate Transparency Act ,
Estate Tax ,
Estate-Tax Exemption ,
FinCEN ,
FIRPTA ,
Foreign Corporations ,
Foreign Investment ,
Foreign Nationals ,
Foreign Ownership ,
Gift Tax ,
Investment Portfolios ,
IRS ,
Non-Citizens ,
Non-Resident Aliens ,
Qualified Domestic Trust (QDOT) ,
Residential Property Owners ,
Title Insurance
Last Thursday, New York State Senator Gustavo Rivera, who represents the 33rd District (basically, the northwestern quadrant of The Bronx), proposed legislation that seeks to collect more taxes from the State’s high-income...more
1/26/2023
/ Capital Gains ,
Estate Tax ,
High Net-Worth ,
Income Taxes ,
Net Investment Income ,
New York ,
Selling a Business ,
State Taxes ,
Tax Increases ,
Tax Rates ,
Taxable Income ,
Trusts ,
Wealth Tax
Some folks eagerly await the release of a new album. Others camp outside of big box retailers to get the jump on holiday gifts. There are those who line up at box offices to purchase tickets for a concert that is months away....more
11/11/2022
/ Estate Tax ,
Federal Budget ,
Financial Adviser ,
Gifts ,
Grantor Trusts ,
Green Book ,
Internal Revenue Code (IRC) ,
IRS ,
Priority Guidance Plan ,
Tax Advice ,
Trusts ,
U.S. Treasury ,
Ways and Means Committee
The Key Person-
The closely held corporation is often a fragile creature. Too often, its continued success and well-being are overly dependent upon the continued involvement of one individual – namely, the founder and...more
11/3/2022
/ Closely Held Businesses ,
Estate Tax ,
Grantor Trusts ,
IRS ,
Marital Trusts ,
Revocable Trusts ,
S-Corporation ,
Shareholders ,
Successors ,
Surviving Spouse ,
Testamentary Trust ,
Trusts
Everyone has heard about the affluent, or even not-so-affluent, New Yorkers who have moved to Florida, or to another state, to escape New York’s tax regime, not to mention the cold.
More recently, some of us are...more
8/30/2022
/ Burden of Proof ,
Citizenship ,
Conditional Permanent Residence ,
Domicile ,
Estate Tax ,
Exit Tax ,
Intangible Property ,
Intent ,
New York ,
Non-Residents ,
Primary Residence ,
Relocation ,
State Taxes
It is a fact that the phenomenon of human migration has been a major force in the history of the world.
Indeed, among the themes that have remained constant during my years of practice, there are two that may be...more
8/23/2022
/ Domicile ,
Estate Planning ,
Estate Tax ,
Foreign Nationals ,
Foreign Trusts ,
Gift Tax ,
Intangible Property ,
IRS ,
Limited Liability Company (LLC) ,
Marital Assets ,
Non-Citizens ,
Non-Residents ,
Partnership Interests ,
Residency Status ,
Tangible Property ,
Tax Treaty ,
Transfer Taxes ,
Visas
“Déjà vu All Over Again”-
The White House last week released the President’s Budget for the Fiscal Year 2023. The Budget is ambitious, but its “investments,” we are told, “are more than paid for with tax reforms focused on...more
4/8/2022
/ Capital Gains ,
Capital Gains Tax ,
Estate Tax ,
Fair Market Value ,
Family Businesses ,
Federal Budget ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Grantor Trusts ,
Income Taxes ,
Joe Biden ,
Rule Against Perpetuities ,
Taxable Income ,
Transfer Taxes ,
Trusts ,
Wealth Tax
Counting the Days?-
We are 302 days away from the national mid-term elections, to be held November 8, 2022, yet the first full week of the new year has already highlighted some of the economic issues with which the...more
1/12/2022
/ Appraisal ,
Business Ownership ,
Business Valuations ,
Closely Held Businesses ,
Estate Planning ,
Estate Tax ,
Fair Market Value ,
Federal Budget ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Grantor Trusts ,
Investment Banks ,
IRS ,
Letters of Intent ,
Mark-To-Market ,
Medicare ,
Net Investment Income ,
Qualified Small Business Stock ,
Stocks ,
Surtax ,
Target Company ,
Tax Increases ,
Wealth Tax
Not Selling Your Business This Year?
Beginning shortly before the House Ways and Means Committee released its version of the President’s Build Back Better plan, several posts on this blog have explored the uptick in M&A...more
11/29/2021
/ Arms Length Transactions ,
Business Ownership ,
Buy-Sell Agreements ,
Corporate Taxes ,
Equity ,
Estate Tax ,
Fair Market Value ,
Family Businesses ,
Income Taxes ,
IRS ,
Life Insurance ,
Liquidity ,
Mergers ,
Partnerships ,
Shareholders ,
Stock Purchase Agreement ,
Tax Increases ,
Transfer of Assets ,
Ways and Means Committee
Tax the Rich?
The President’s plan for a tax regime that would ensure the rich pay their “fair share” of the cost of implementing his programs has come one step closer to being realized . . . maybe . . . well, sort of ....more
11/23/2021
/ Adjusted Gross Income ,
C-Corporation ,
Capital Gains ,
Capital Gains Tax ,
Corporate Taxes ,
Estate Tax ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Income Taxes ,
Infrastructure ,
Inter Vivos Gifts ,
IRS ,
Mark-To-Market ,
Net Investment Income ,
Social Security Taxes ,
Tax Code ,
Tax Court ,
Tax Liability ,
Tax Returns ,
Transfer Taxes ,
Valuation ,
Wealth Tax
It was quite a week, wasn’t it?-
Manchin-
Senator Manchin continued to attract a lot of attention.
To the dismay of his fellow Democrats, the West Virginian – who also chairs the Senate Energy and Natural Resources...more
10/13/2021
/ Business Ownership ,
Business Taxes ,
Capital Gains ,
Carbon Taxes ,
Clean Energy ,
Closely Held Businesses ,
Debt Ceiling ,
Estate Tax ,
Estate-Tax Exemption ,
Gift Tax ,
Gift-Tax Exemption ,
Grantor Retained Annuity Trusts (GRATs) ,
Grantor Trusts ,
Irrevocable Trusts ,
IRS ,
Joe Biden ,
OECD ,
Pandora Papers ,
Private Equity ,
SALT ,
Tax Increases ,
Tax Rates ,
Valuation ,
Ways and Means Committee
Where Are We?
Have you seen the Triumvirate of late? No, not Julius, Pompey, and Crassus. I’m referring to more contemporary political figures, whose names and exploits are not likely to appear in volumes that will be...more
9/28/2021
/ Estate Tax ,
Fair Market Value ,
Gift Tax ,
Grantor Retained Annuity Trusts (GRATs) ,
Grantor Trusts ,
Green Book ,
Income Taxes ,
Joe Biden ,
Obama Administration ,
Tax Code ,
Tax Legislation ,
Tax Planning ,
Trust Income ,
U.S. Treasury ,
Ways and Means Committee
First Step-
Last Wednesday, the House Ways and Means Committee approved that portion of the 2022 budget legislation with which it was tasked by the Congressional Budget resolution of August 24. The text of the bill...more
9/21/2021
/ Adjusted Gross Income ,
Business Assets ,
Business Income ,
C-Corporation ,
Capital Gains ,
Corporate Taxes ,
Estate Tax ,
Gift Tax ,
Grantor Trusts ,
Investors ,
Joe Biden ,
Limited Liability Company (LLC) ,
Liquidation ,
Qualified Small Business Stock ,
S-Corporation ,
Shareholders ,
Subsidiaries ,
Surtax ,
Tax Increases ,
Taxable Income ,
Valuation ,
Wealth Tax
Summertime in Washington-
On August 11, the Senate passed the $3.5 trillion budget resolution for the 2021-2022 fiscal year – S. Con. Res. 14, as amended – by a vote of 50 to 49, strictly along party lines, including...more
9/7/2021
/ Budget Reconciliation ,
Closely Held Businesses ,
Congressional Budget Resolution ,
Earn-Outs ,
Escrow Accounts ,
Estate Tax ,
General-Business ,
Gift Tax ,
Legislative Agendas ,
Popular ,
SALT ,
Selling a Business ,
Tax Increases ,
Tax Rates ,
Transfer of Assets
Welcome to the Governor’s office, Ms. Hochul. Unfortunately, congratulations are hardly in order; indeed, a wish for good luck seems much more appropriate.
I suppose you realize that the last round of tax legislation,...more
8/23/2021
/ Business Ownership ,
Capital Assets ,
Capital Gains ,
Corporate Taxes ,
Estate Tax ,
Income Taxes ,
Like Kind Exchanges ,
Long-Term Investment Funds ,
New York ,
S-Corporation ,
Stock Transfer ,
Tax Fraud ,
Tax Legislation ,
Tax Rates ,
Transfer on Death Deed (TOD) ,
Transfer Taxes
Ask the owner of a closely held business to describe their most recently recurring nightmare and you are likely to get an earful regarding the prospect of an increased federal income tax on their profits, an increased federal...more
5/17/2021
/ Biden Administration ,
Bona Fide Purchaser ,
Capital Gains ,
Cash Transactions ,
CCA ,
Closely Held Businesses ,
Estate Tax ,
Fair Market Value ,
Federal Taxes ,
Income Taxes ,
Investigations ,
IRS ,
Joe Biden ,
OCC ,
Promissory Notes ,
Tax Advice ,
Tax Deferral ,
Tax Increases ,
Tax Liability ,
Unsecured Debt
Go After Real Estate?
During the 2020 presidential campaign, there was one segment of the “rich” for which then-candidate Biden seemed to have reserved some of his harshest criticism – wealthy real estate investors....more
5/11/2021
/ Capital Gains ,
Estate Tax ,
Income Taxes ,
Installment Agreements ,
Internal Revenue Code (IRC) ,
Investment Property ,
Joe Biden ,
Like Kind Exchanges ,
Political Campaigns ,
Real Estate Investments ,
S-Corporation ,
Step-Up Basis ,
Tax Increases ,
Tax Planning