Anatomy of an S Corporation “Murder”: Negligent “Tax Homicide” by Professionals and Its Financial Consequences
In criminal law, second-degree murder charges can arise from negligent conduct that causes death. Similarly, the “murder” of an S corporation’s tax status often occurs through the negligent inaction of tax accountants and estate lawyers, leading to the inadvertent termination of its S-corporation status.
This termination “kills” the S...
Why You Should Make Gifts Well Before the Expiration of the TCJA in 2025 — Preserving Your $14 Million Lifetime Gift and Estate Tax Exemption
The Tax Cuts and Jobs Act (TCJA), passed by Congress in 2017, introduced a number of sweeping changes to tax laws, one of the most significant being the substantial increase in the lifetime gift and estate tax exemption. Currently, this exemption allows individuals to transfer significant amounts of wealth—either during their lifetime...
California Prop 19 Explained: How It Affects Gifting Real Estate to Children
California's Proposition 19 changed the rules for transferring real estate between parents and children. While some family home transfers can still avoid full property tax reassessment, rental properties, vacation homes, and many inherited homes no longer receive the same tax treatment that existed before 2021. If you're planning to gift real estate...
The Connelly Case: A Wake-Up Call for Small Business Owners with Buy-Sell Agreements Funded by Life Insurance
Connelly vs. Internal Revenue Service: A Critical Legal Development for Small Business Owners
Small business owners often rely on buy-sell agreements to ensure the smooth transition of ownership upon the death of a partner. These agreements, commonly funded by life insurance, provide a vital safety net, ensuring...
Estate Planning Tax Law Changes – Be Prepared!
As we write this commentary, Congress and the White House are negotiating over proposed legislation which, if enacted in its current form, would...
Don’t Miss Out on New State Income Tax Deduction for your Federal Tax Returns!
To Qualify, Single Member LLCs and sole-proprietorship would have to become S-corporations or Partnerships for Tax Filing Purposes.
Since the Tax Cut and Jobs Act was passed, there’s been a $10,000 cap on the state and local/property tax deduction on individual federal income tax returns.The Latest IRS Mindset – Enforcement (but with a lighter touch since the pandemic)
The IRS Commissioner, Charles “Chuck” Rettig, a former Los Angeles-based tax lawyer of 38-years, diligently made his rounds last year at virtually every major tax conference around the country.
The message –
“I’m an...