Proposed regulations were issued in November under Code Section 2010 addressing the possibility of “clawback” when the temporary high exemption amount reverts to pre TCJA levels (adjusted for inflation). The good news is that the proposed regulations state that clawback will not occur if one fully uses his or her exemption amount prior to sunset.
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Another Conservation Easement Bits the Dust
In theory conservation easements are simple- a landowner grants a perpetual easement on a portion of his land for a charitable purpose and gets an income tax deduction for the reduction in value to the land encumbered by the easement. Many wealthy landowners have successfully done conservation easements. However, they have been highly abused over…
Update on Qualified Opportunity Funds
Proposed regulations on Qualified Opportunity Funds (QOF) were released at the end of October. The regulations are complex, and a complete analysis is beyond the scope of a blog post. However, there are some interesting provisions to note:
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Fun with Sales of S Corporation Stock
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…
Rethinking that LLC
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…
Qualified Opportunity Zones
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:
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Practice the Hard Things
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…
Newly Issued Proposed Regulations under Code Section 199A
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…
Know Where You Are Going
Golf break: A more sophisticated way to work the ball. I give credit to instructor John Erickson for teaching me this.
The Role of the Probate Lawyer
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…