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.
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of age or older you can take up to $100,000 in tax-free distributions from your IRA in 2014 provided that the funds withdrawn are given to an eligible public charity.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.
By: Amanda Wilson
Every year, as the countdown to the new year approaches, Congress races to extend expiring tax provisions. Last night, the Senate finally caught up with the House and approved a bill extending certain beneficial tax provisions. The President is expected to sign the bill into law this week.
By: Amanda Wilson
Many private companies utilize S corporations in their ownership structure, as they provide beneficial tax treatment. In order to qualify as an S corporation, the corporation can have only certain types of shareholders. Specifically, a partnership cannot be a shareholder. Yesterday, someone asked me whether a single member LLC could be a shareholder. The answer should be yes, as the LLC is treated as though it does not exist for tax purposes. Private guidance indicates that the IRS agrees with this answer.
By: Jason Palmisano
The Internal Revenue Service has released the exclusion amounts related to estate and gift taxes for 2015:
