We have previously written about Florida’s new Limited Liability Company (LLC) Act. Section 605.0205 of the Act creates new personal liability exposure for LLC members and managers. What is the exposure? How do you manage it? Section 605.0205 applies when an LLC filing with the Florida Department of State is incorrect…
Owners of C corporations, and S Corporations that previously were C corporations and have built-in gains, can face a significant tax hit upon the sale of their business – two levels of federal income tax and Florida corporate income tax. Where the owner of the business has bona fide personal…
The Internal Revenue Code prescribes minimum imputed interest rates and time-value-of–money factors applicable to certain loan transactions and estate planning techniques. These rates are tied formulaically to market interest rates. The Internal Revenue Service updates these rates monthly. These are commonly applicable rates in effect for October 2014: Short Term AFR…
Non-controlling family partnership interests with limited marketability have long been discounted for federal gift and estate tax valuation purposes, reducing their deemed fair market value and the gift and estate tax attributable to such interests. The income tax tradeoff for a partnership interest held until death is that the income…
In a recent ruling, the IRS confronted a partnership serving as a management company for investment partnerships and funds. Management fees were its sole source of income. The management company paid reasonable compensation subject to employment or self-employment taxes to its owner-managers. Following a planning technique available to S corporations,…