The Tax Cuts and Jobs Act of 2017 doubled the federal gift and estate tax applicable exclusion amount from $5 million to $10 million, adjusted for inflation. In 2021, the…
Continue reading…Transfer to Transferee IRA Not Taxable
In a recent Private Letter Ruling dated September 25, 2020 (PLR #202039002), IRS determined that a transfer to a transferee IRA is not a taxable distribution and that distributions to…
Continue reading…Make Sure Taxes are Paid before Final Distribution to Beneficiaries
A recent (unpublished) federal district court case out of New Jersey, decided on October 22, 2020, United States v. Estate of Kelley, 2020 WL 6194040, highlights the treacherous pitfalls to…
Continue reading…Trusts Cannot Assert Fifth Amendment Right Against Self-Incrimination
In a recent tax case involving IRS subpoenas, United States v. Fridman (2d Cir. 2020) 974 F.3d 163, a federal appellate court ruled that a trust cannot assert a right…
Continue reading…Considerations for Forming an LLC for Holding Real Estate
For individuals who own real estate, it is important to consider the best way to structure your ownership. When you are just starting out as an investor in real…
Continue reading…Risky Business: Piercing the Veil and How it Puts Your Business at Risk
When you create a limited liability company (LLC) or a corporation, the concept of limited liability is one of the key rationales for those entity choices. Limited liability is…
Continue reading…Increase in Creditor Exemption for CA Homeowners
On September 18, 2020, Governor Newsom signed into law Assembly Bill 1885, Section 1 of which increases the homestead exemption against creditors with respect to a debtor’s equity in his…
Continue reading…How Does LLC Ownership Work?
The limited liability company (LLC) is a popular business structure for new businesses, but what does it really mean to own an LLC? LLCs provide unique opportunities to customize…
Continue reading…What Happens to an LLC after a Member Dies?
Death is almost always a complicated event for the survivors, who have not only emotional but also logistical considerations to manage. However, when an owner (typically called a member)…
Continue reading…Five Types of Risk that Businesses Face
Pursuing a business venture naturally involves risk. Eliminating all risk is not an option—there are many factors beyond your control, and it is impossible to prevent every circumstance that…
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