The United States Court of Appeals for the Fifth Circuit recently upheld the Tax Court’s ruling in the Nelson v. Commissioner case. On the surface this may appear to be a win for the IRS, and for the Nelsons it probably feels that way, but let’s dive a little deeper into the facts and circumstances. …
The National Center on Elder Abuse has identified seven different types of elder abuse. These include physical abuse, emotional abuse, sexual abuse, financial/material exploitation, neglect, abandonment and self-neglect While I think we can all agree that physical, sexual, or emotional abuse of anyone, especially the elderly is horrific, any form of abuse can be devastating …
For business owners who have seen their business struggle and face unique pressures during the past five – six months, the thought of transitioning the business to the next generation may not have even crossed their minds. But if gifting a portion of the business to the next generation is potentially part of your estate …
In this estate case, the valuation provided with the estate tax return was based on an assignee interest claiming discounts for lack of control and lack of marketability. The decedent formed a limited partnership in 2008 with the purpose to manage and preserve the assets. The assets of the limited partnership consisted of marketable equity …
There have been two recent tax case rulings revolving around valuations of entities for either estate or gift tax filing purposes that those involved in estate tax planning should be aware of. Here is the finding for the first case. Grieve v Commissioner What appears at first to be a straight-forward valuation of two entities …
You have built your small business on your hard work and sweat. You may even have your son/daughter/niece/nephew or other family members working with you in the company. Now you are ready to move on, or at least slow down. You may start planning on gifting your business to someone else. Often times a small …
The U.S. Census Bureau estimates that by 2030, approximately 20.3 percent of the U.S. population will be aged 65 and over[1]. Among developed countries, the United States currently has the largest number of people aged 65 and over. This trend is expected to continue into the future, with the U.S. reaching 73 million older adults …
For business owners preparing for the next chapter in the business cycle, the terminology used by consultants can be a little confusing. Most owners believe that succession planning and exit planning are the same, but they are not. We offer the following descriptions of each term to assist those of you who are looking to …
According to Internal Revenue Code Section 6166, a personal representative (PR) may defer payment of federal estate tax if the decedent’s equity interest in a closely held business exceeds 35 percent of his adjusted gross estate. In order to be eligible for a Section 6166 election, the closely held business must qualify as an active …
I attended the American Society of Appraisers Advanced Business Valuation Conference a couple of weeks ago and had the opportunity to attend a session presented by an IRS attorney, Theresa Melchiorre. I always jump at the chance to hear an IRS presenter, as I like to get a glimpse of what goes on behind the …