Tax

Family-owned businesses are often staples of their communities. For many owners of these types of businesses, it is desirable to sell the business to their child. This is particularly true if the child is involved in the operation of the business. Further, by selling the...

Deferring compensation is commonly used to avoid paying taxes on compensation immediately. But, under the Internal Revenue Code (IRC), deferring compensation can sometimes cause additional taxation. As a result, individuals and businesses considering deferring compensation should understand the scenarios that may trigger this tax. Deferred Compensation Deferred...

Effective July 1, 2015, in addition to increasing and revising existing taxes, Nevada has implemented a new “annual commerce tax” on “business entities” “engaged in business in Nevada.” The tax is placed on businesses’ Nevada-located annual gross receipts in excess of $4 million.Because it is...

Service partnerships and fund managers best beware: The IRS has issued proposed regulations under §707(a)(2) to determine when distributions to a partner are in fact disguised payments for services. These proposed regulations target various disguised payments for services, but especially attack management fee waivers. In...

Ordinarily, a gain on the sale of business or investment property is subject to tax. However, a special provision of the Internal Revenue Code (IRC) allows for sellers in these types of transactions to postpone recognition of the gain if certain conditions are met.Like-kind Exchanges IRC...

Quite often, employers use items like employee stock ownership plans (ESOPs), 401k plans, or stock option plans to provide incentives and benefits to employees. However, under certain circumstances, it may be desirable or necessary to use alternate forms of equity compensation. In these situations, companies...

For business owners, expanding beyond the borders of the United States presents significant opportunities and benefits. The decision to enter foreign markets likely means the company is enjoying success. However, it is important to keep in mind that conducting business in other countries raises additional...

For individuals with multiple properties or businesses, an alternative to creating multiple limited liability companies (LLC) is to form a series LLC. This special form of LLC, first developed by Delaware, contains many benefits, but is also filled with limitations that business owners should be...

At the formation of a limited liability company (LLC), an important consideration is the writing and adopting of the LLC operating agreement. One aspect that should be included in the operating agreement is how the profits (or losses) will be distributed among the members of...

Disability-related expenses are often significant. The Achieving a Better Life Experience (ABLE) Act, signed into law by President Obama this past December, aims to help individuals and their families save money for future expenses. The Act amends the tax code to allow for tax-advantages in...

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