Planning for wealth transfer? FLPs with passive assets are still the most vulnerable
Recent cases concerning the viability of taxpayers’ transfers to family limited partnerships (FLPs) as “bona fide” for legitimate, non-tax business purposes have been fairly successful in the Tax Court—even when the transfers have involved assets that don’t require active management. Estate of Black, for instance, upheld an FLP in which the partners held the critical “swing” [...]
You can’t do estate planning without sound business valuations
BV.com was talking to Bob Buchanan (PCE Valuations) who’s attended a bunch of estate tax planning meetings recently. “The change in the tax law does not impact the necessity of obtaining a well-reasoned, independent valuation,” says Buchanan. He also believes:
“Valuation of holding-type entities like LPs and LLCs is no longer simply an application of discounts based [...]
Estate transfer filings for relatives who died this year require special treatment
There is a new estate property transfer procedure for decedents who died in 2010, “Generally, for decedents who died in 2010, the transferee’s basis in the acquired property is the lessor of the decedent’s basis in the property or the fair market value of the property on the date of death,” says Robert F. Reilly [...]
New “chain of ownership” reporting documents controlling interests
Thanks to the Minnesota Business Valuation Group for alerting us to new ownership reporting requirements: business tax filers with multiple owners must now answer new tax questions due to changes in reporting on Internal Revenue Service (IRS) form 1065, the U.S. Return of Partnership Income. Passed in 2008, the requirement for partnership returns became effective [...]
You can’t do better than this family when transferring wealth to your kids
Samuel Black Jr. was born into poverty in 1902, began peddling bread and newspapers in his Pennsylvania hometown when he was 11; started with the Erie Indemnity Co. in 1925 when it just insured automobiles, and stayed until he was senior vice president and a director—and the company was a national, multiline insurer. Bullish on [...]
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