Category: Taxes
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What Can You Do With Real Estate Trapped in a C-Corp?
If you have clients who own real estate in a C-corporation, you probably already know some of the difficulties that stand in the way of clients getting their hands on “their” money (i.e. the assets inside the C-corporation). Consider a case we’re currently working on. (The names are changed to…
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New IRS Life Expectancy Tables Creates “Arbitrage” Opportunity
Recent IRS actions may create an opportunity for your clients to receive a premium price for their charitable remainder trust interests. On June 1, 2023, the IRS finally adopted “new” mortality tables. We place the word “new” in quotation marks because the tables in question are based on 2010 data. The world…
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Personal Goodwill — Surprising AUM Opportunities?
If you have clients who own and run businesses in which they, as individuals, play an important role, they may have personal goodwill. Identifying personal goodwill can open up valuable planning opportunities, especially for businesses that might be hard to plan for otherwise. Goodwill is an accounting concept, as well as…
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Capture AUM and/or Save Clients Tax When Selling a Small Business?
When a client sells, or prepares to sell, a small business such as a dental, medical, veterinary or similar practice, stakes are high for the advisor, as well as the client. You, as the advisor, have a unique opportunity to cement both your relationship with the client and your position…
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Ouch! Widow Loses $463,676 Tax Deduction – On a Technicality
In a case decided last year, the Tax Court denied Martha Albrecht a $463,676 income tax deduction for about 120 items jewelry she donated to the Wheelwright Museum of the American Indian in Santa Fe, New Mexico. The case, Martha L. Albrecht v. Commissioner, makes for painful reading. The court…
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Did the Court Create a New Discount in Addition to Control and Marketability Discounts?
If you’ve ever done gift or estate planning, you are no doubt familiar with the valuation discounts for lack of control and/or lack of marketability. You’re probably also familiar with the concepts of inside and outside basis, especially low inside basis and low outside basis. Low outside basis is, for…
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Death And Taxes
Are your clients paying more than their fair share of taxes? The chances are high that they feel they are. And the statistics suggest they might be right. What Level of Taxation is Fair?The US Government claims that “taxes are the price we pay for a civilized society.” That claim…
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Crypto – Opportunities for Advisors and Clients
Bitcoin, along with the rest of the “crypto” universe of assets is down roughly 75% from recent highs. Many of your clients who own Bitcoin or similar assets will have losses. However, those who have been invested for a longer time may still have huge gains. Fundamental ValueThere is a strong case that…
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Time To Sell Commercial Real Estate?
Commercial real estate, as an asset class, is very sensitive to the availability, and pricing, of loans. The graph below shows the history – the black line – of the prices of US commercial real estate going back almost 30 years. Also on the graph are loan demand – blue – and…
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Bear Market Signal
The article discusses bear markets related to the S&P 500 and how it could signal another bear market. Advisors recommend clients lock in gains, especially where large positions are concerned. Capital gains taxes could be managed by capitalizing on Sec. 664 Stock Diversification Trust, a tax-exempt trust that allows stockholders…