The Rewards of Not Planning


Most professionals working with small businesses have stories they hear from clients about bad situations that could have been avoided.  Here are two that we’ve heard from our clients: A substantial New York-based electrical contractor had two 50% partners.  They started and grew the business over the years from scratch.  Each has a lifestyle they [...]

The Rewards of Not Planning2018-11-12T12:44:25-05:00

Buy-Sell Agreements – Do You Really Need One?


In a business owned by more than one partner, the need for a buy-sell agreement may seem remote, especially while the business is still young and growing. Understandably, the owners are focused on the urgent and important matters of running and growing the business. Investing time into planning for the future exit of a partner [...]

Buy-Sell Agreements – Do You Really Need One?2017-04-12T12:06:49-04:00

Changes in the Wind for Estate Taxation


Section 2704 Proposed Changes: Much Ado About Nothing? A Different Kind and Level of Estate Taxation? A Golden Opportunity? All the Above? The December 1 IRS hearings on proposed changes to the Section 2704 Regulations demonstrated the significant opposition from taxpayers, advocacy groups and other interested parties. Thousands of comments, almost all against the proposals, [...]

Changes in the Wind for Estate Taxation2017-04-04T17:22:04-04:00

Estate of Giustina V Commissioner


This recent estate tax case is rife with valuation issues.  And it is one of the few that the issues are clearly defined and resolved. The United States Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) remanded the case to the Tax Court to reconsider its decision on the valuation of the Estate’s [...]

Estate of Giustina V Commissioner2017-04-04T17:22:22-04:00

Normalizing Adjustments and Valuations


Valuations frequently assume a third party will purchase a business and primarily run it unchanged.  This does not mean a buyer will continue to pay expenses or a level of expense not considered typical.  Non-operating assets are typically excluded from a valuation, too.  Normalizing adjustments take the atypical expenses or portion of expense (or income) [...]

Normalizing Adjustments and Valuations2017-04-04T17:33:33-04:00

What Is Fair Market Value? The IRS v The Taxpayer


James and Julie Kress (the “Taxpayers”) filed a lawsuit in United States District Court for the Eastern District of Wisconsin [Case 1:15-cv-01067-WCG] on September 2, 2015. They sought a refund of federal gift taxes and interest they claim were erroneously assessed by the IRS on gifts made in 2007, 2008, and 2009. The Facts The [...]

What Is Fair Market Value? The IRS v The Taxpayer2017-04-04T17:25:54-04:00

DOL Proposes New Definition for Fiduciary


Since 1975 and prior to April 2015, the definition of fiduciary as put forth by the Department of Labor included a five-part test. Only if all five parts listed below were met would an adviser be considered a fiduciary. Advice was given: as to the value of securities or other property, or make recommendations as [...]

DOL Proposes New Definition for Fiduciary2022-05-27T12:26:14-04:00

IRS May Try to Restrict Discounts


[av_textblock size='' font_color='custom' color='#83a846'] At the American Bar Association (ABA) Section of Taxation meeting on May 8th, 2015, Catherine Hughes, of the Office of Tax Policy in the U.S. Treasury Department, announced that proposed regulations under section 2704(b)(4) could be released before the fall. She indicated that the tax community could look to the Obama [...]

IRS May Try to Restrict Discounts2017-04-04T17:26:44-04:00

DOL v PBI Banks, Inc. and The Miller’s Health Systems, Inc. Employee Stock Ownership Plan


No case is clear cut, but lessons often can be learned.  In the recently filed action, the Department of Labor v PBI Bank, Inc. and The Miller’s Health Systems, Inc. Employee Stock Ownership Plan (United States District Court for the Northern District of Indiana, Civil Action: 3:13CV1400), some, but not all, of the issues surrounded [...]

DOL v PBI Banks, Inc. and The Miller’s Health Systems, Inc. Employee Stock Ownership Plan2017-04-04T17:27:03-04:00

Estate of Diane Tanenblatt v Commissioner of Internal Revenue


In this recent United States Tax Court case (T.C. Memo. 2013-263) concerning a real estate holding company operating as an LLC, two valuation issues were discussed: the sole consideration of a net asset value technique and the extent of lack of control and lack of marketability discounts. In an unrelated issue, the petitioner later attempted [...]

Estate of Diane Tanenblatt v Commissioner of Internal Revenue2017-04-01T14:01:43-04:00

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