Tax, Estate, Trust, Real Estate, Business and Corporate Issues

  • Possible Conflicts Under New California LLC Act


    The California Revised Uniform Limited Liability Company Act (RULLCA) is effective on January 1, 2014, RULLCA.  It revises the rules for formation and operation of Limited Liability Companies (LLCs) in the state of California.   Last month’s article gave a basic overview of some of the key changes. After attending various seminars on RULLCA and its […]

  • C Corporation vs S Corporation Election Considerations


    Starting in January 2013 because of the American Taxpayer Relief Act of 2012, owners of small businesses face a question regarding using a corporation as a business entity: Should the business elect to be an S corporation, or remain as a C corporation for tax purposes? Today there are higher tax rates than in 2012 […]

  • Business Succession Planning Still Important in 2014


    In 2014, the estate and gift tax is $5.34 million for an individual and $10.68 million for a couple. That does not mean for the closely held business, succession planning for the next generation and continuing the closely held business is still not very important. There are many non-tax reasons for such planning. The old […]

  • Review Now, Save Later


    I have been updating a married couple’s estate planning documents, which include both community property and separate property trusts.  The primary reason for this review was to make certain that all of the assets that can have a stepped up in basis on the death of the first spouse could also be stepped up again […]

  • Possible Tax Traps on Partnership Distributions


    Partnerships and limited liability companies are a very tax favorable business entity to conduct a family business or new enterprise.  However, depending on the type of asset distributed, the partner who made the initial contribution and who is receiving the distributed asset can have some surprising results as discussed below. Also, family limited partnerships (FLPs) […]

  • Planning Under ATRA


    The American Taxpayer Relief Act of 2012 (“ATRA”) has given us a permanent set of estate, gift, and GST tax rules for the first time in more than a decade. ATRA provides that a couple can transfer up to $10.5 million without having to worry about their estate paying any estate taxes on the death […]

  • Coming Soon, the New California LLC Act 2014


    The California Revised Uniform Limited Liability Company Act (RULLCA) is to come into effect on January 1, 2014, RULLCA revises the rules for formation and operation of Limited Liability Companies (LLCs) in the state of California. Every person who is either a manager or member of a California or foreign LLC (non-California LLC registered in […]

  • Conversion to and Formation of LLCs


    Over years, I have had the experience of converting corporations (either S Corps or Corps) to a limited liability company (LLC).  The reasons are to achieve better asset protection from outside creditors and have less ongoing documentation (avoiding corporate minutes) but not to be considered to have liquidated for income tax purposes. I have also […]

  • Family LP and LLCs: The Devil is in the Detail


    It is almost the start of new year, and, as I am writing this article in December 2012, the uncertainty of the “Fiscal Cliff” is far from settled.  One thing is for certain:  your family wealth should continue to be addressed to ensure that it is preserved from both creditors and death taxes. The “devil […]

  • Death, Taxes – Stepped Up in Basis?


    Everyone has heard the old slogan about the inevitability of death and taxes.  For 99.3% of the population death taxes will not be an issue for their heirs since an individual can transfer up to $5,250,000 or a couple up to $10,500,000 under the new American Taxpayer Relief Act of 2012 (“ATRA”). For the first […]