Bad Boy Guarantee Makes Loan Recourse?

By: Amanda Wilson

The IRS recently released IRS legal memorandum 201606027.  In this memorandum, the IRS considered the impact of a bad boy guarantee on allocating partnership liabilities under Section 752.  Traditionally, bad boy guarantees have not been viewed as resulting in a partnership liability being allocated to the guarantor, as the guarantee obligation has been viewed as subject to contingencies that make it unlikely that the guarantee would ever come into play. read more

Share Button

New Gun Trusts Laws Take Effect July 13, 2016

by Jason Palmisano

Firearms such as short-barreled rifle or shotguns, silencers or suppressors, and machine guns (i.e., Title II firearms) are regulated by the federal government as to their purchase, transfer and manufacture.  Properly drafted Gun Trusts have been an effective estate planning technique to own and use Type II firearms for several reasons, including: read more

Share Button

FIRPTA Withholding Tax Increases

By:  Amanda Wilson

The Foreign Investment in Real Property Tax Act (FIRPTA) subjects foreign sellers to U.S. tax when they sell their interest in real property located in the U.S., including interests in companies that predominately hold real estate.  To accomplish this, the purchasers generally are required to withhold 10% of the gross sales price when the seller is foreign.  Legislation that was passed at the end of last year (the PATH Act) increases this withholding rate from 10% to 15% effective as of February 16, 2016.  If you are purchasing a U.S. real estate interest from a foreign seller, make sure you are aware of this change and adequately withhold.  If you fail to do so, you may find yourself liable for the extra withholding. read more

Share Button

The PATH Act Brings Important REIT Changes

BY:  Amanda Wilson

The recently enacted PATH Act included several important changes to the REIT tax rules.  A full discussion of these changes can be found here. read more

Share Button

Congress Poised to Deliver Permanent Extenders Package

By:  Amanda Wilson

It looks like Congress will be delivering an early Christmas present. in the form of permanent extenders package.  The Protecting Americans from Tax Hikes Act of 2015 (“PATH Act”) is expected to be approved by Congress this week. read more

Share Button