By: Amanda Wilson
A more detailed discussion of the impact of the new partnership audit rules can be found here.
Beware Transferee Liability
By: Amanda Wilson
One of the great features of corporations is that liability in the corporation generally does not extend to its shareholders, including tax liability. Like any rule, though, there is almost always an exception. In this case, the exception can be brutal.
Business Tax Reform High Priority
By: Amanda Wilson
Recently, I was at the ABA Tax Section meeting in DC, and one refrain that I heard over and over is that tax reform is a major priority for Congress. The Obama administration has basically shut down the possibility of personal tax reform by threatening a veto on any legislation that lowers the top individual tax rate from 39.6%. However, business tax reform continues to be open for discussion, and there is a strong appetite for lowering the corporate tax rate. The key issue, though, is that any tax reform will have to come soon – before the presidential campaign over shadows everything.
Common Traps When Selling Partnerships
By: Amanda Wilson
Because of the flexibility and tax benefits that tax partnerships provide, many small businesses and family partnerships use tax partnerships. For tax purposes, a partnership can be in the form of a general partnership, limited partnership, limited liability company or limited liability limited partnership. While these forms offer great tax advantages, they can also result in unexpected surprises and traps for the unwary when a partnership interest is bought or sold.
IRA $100,000 Charitable Withdrawal through 12/31/14
By: Julie Frey.
If you are chairtably inclined and wish to use some of your IRA to fund your charitable donations, the Senate has just passed an extension of some “tax extenders” that were in place in 2013. It is anticipated that President Obama will sign the bill in the next few days. What does this mean for you? It means that if you are 70 1/2 years of age or older you can take up to $100,000 in tax-free distributions from your IRA in 2014 provided that the funds withdrawn are given to an eligible public charity. While one cannot also take a deduction for that contribution, the money won’t count as income. Once President Obama signs the bill into law, you will only have a few weeks to act, so contact your advisors now to alert them to your intention to make the withdraw and charitable contribution. The ability to do this ends on December 31, 2014.