Taxation

NEW HAMPSHIRE TAX DEVELOPMENTS

For those interested in New Hampshire state taxation, the following update from CCH will be of interest: ———————— S.10,New Hampshire—Corporate Income, Utilities Taxes: Correction: IRC Conformity Updated and BPT/BET Rates Reduced,(Jul. 12, 2017) Governor Sununu of New Hampshire has approved legislation that reduces the tax rates of the business profits tax and the business enterprise […]

NEW ARTICLE ABOUT TAX CHOICE OF ENTITY

Tax choice of entity is a critical task in any LLC formation.  Below is the cite to a new law journal article about LLCs and tax choice of entity: 9 Elon L. Rev. 311 Elon Law Review 2017 Article Caolan J. Ronan Copyright © 2017 by Elon University; Caolan J. Ronan START-UPS: WHY INVESTORS PREFER […]

SELLING LLCS

LLC lawyers sometimes need expertise about the special issues involved in buying or selling family-owned businesses.  The post under the following link contains excellent advice about valuing these businesses: http://www.taxlawforchb.com/2017/06/unreasonable-compensation-the-family-business/

SELF-EMPLOYMENT TAX OF LLC MEMBERS

Most multi-member LLCs are taxable as partnerships.  A key task of lawyers forming LLCs is often to minimize the Self-Employment Tax exposure of the members of these LLCs.  The post under the link below discusses a recent Tax Court case addressing the SET liability of the members of a multi-member LLC whose members were lawyers, […]

S CORPORATION TAXATION

Many LLCs are taxable as S corporations, and far more should be.  The attached post under the link below addresses a couple of fundamental and pervasive S corporation issues about basis and losses.  The post applies, of course, as much to LLCs that are S corporations as to state-law business corporations that are S corporations. […]

THE NEW PARTNERSHIP AUDIT RULES

Under the link below is a brief but fairly good post summarizing the new and draconian federal statutory partnership audit rules that, for most multi-member LLCs taxable as partnerships, will become effective on 1-1-18.  A few comments about the post: Puzzlingly, the post doesn’t mention the key fact that under the above rules, the federal […]

CONTRIBUTING PROPERTY TO A PARTNERSHIP

LLC lawyers are sometimes asked by clients about the tax issues in contributing property to multi-member LLCs taxable as partnerships. The post under the link below provides brief but very helpful advice about deferring federal income tax in these situations. Here’s the link: http://www.taxlawforchb.com/2017/03/protecting-tax-deferral-for-a-contribution-to-a-partnership/

GETTING STEPPED-UP BASIS IN ASSET PURCHASES

The new post under the link below provides guidelines on how you can help your clients ensure that they get stepped-up basis in asset acquisitions. Here’s the link: http://www.taxlawforchb.com/2017/03/a-buyers-guide-to-acquiring-targets-assets-with-a-stepped-up-basis/

S CORP ISSUES ON WHICH THE IRS WILL NOT ISSUE PRIVATE RULINGS

An ever-increasing number of LLCs are making S elections; so LLC lawyers who advise their clients about S corporation matters need to follow IRS Subchapter S developments. Under the link below is a new post about a recent IRS announcement as to three S corporation issues on which the IRS will no longer issue private […]

LLCS AS S CORPS

The post under the link below contains a brief but useful discussion concerning the basic pros and cons for LLCs in electing to be S corporations. The big pros of Subchapter S as compared with the default federal tax regimens of sole proprietorship and partnership tax are greater ease in reducing member Social Security Tax […]