ERSOP Plans as a Financing Alternative for Start-ups

Entrepreneur Rollover Stock Purchase Plans

Starting a new business can be an exciting and challenging endeavor, but financing the venture can often prove to be a significant obstacle. Traditional lenders typically require a business to be operational for at least a year before they will consider providing small business loans. Meanwhile, venture capitalists often reject the majority of start-up proposals…

Charitable Remainder Unitrust and NIMCRUT: Tax-Savvy Giving

Sometimes It Is Best Not To Nimcrut

Developing a tax strategy that allows for income and current income tax benefits is a key goal for many individuals and families. One potential solution to this challenge is to establish a charitable trust. These trusts can offer donors the ability to make a charitable gift while retaining an income stream from the donated assets,…

Taxes & Gay and Lesbian Marital Rights

Taxes & Gay And Lesbian Marital Rights

This article is updated in 2023, given the significant changes to our tax laws that impact gay and lesbian couples. The U.S. Supreme Court issued several rulings that brought about significant changes to the tax treatment of same-sex marriages. The primary court case centered around the federal estate tax and the lack of a marital…

Trust as the IRA Beneficiary: The RMD Conduit Trust

Trust As The Ira Beneficiary

If you have an individual retirement account or IRA, you should have a plan for how the account’s assets will be distributed after you die. There are a number of tax planning strategies that can be used for this. Many IRA owners opt to name a beneficiary to receive the account’s funds after they die.…

Tax Consequences of Settlement Awards for Plaintiffs and Attorneys

Taxation Of Settlement Agreements For Plaintiffs Attorneys

When an individual receives a settlement award, the tax consequences of that award can vary depending on how it is structured. There are several tax planning opportunities available for individuals who receive settlement awards, but in most cases, the tax consequences are fairly standard. The case of Lindsey v. Commissioner, 422 F.3d 684 (8th Cir.…

Valuation Challenges and Pitfalls in Tax Cases

Taxpayer: It’s All About Valuation; Irs: We’re Damned If We Do

Valuing property for tax purposes is complex and can be a critical issue as it can result in significantly higher or lower taxes. The Garwood v. Commissioner, T.C. Memo. 2004-195, case offers a fascinating example of the challenges and pitfalls involved in valuation, particularly in the context of tax court cases. This case involved the…