President's proposals would affect the use of limited partnerships or LLCs in an estate plan
Article Abstract:
Limited liability companies and limited partnerships would be of restricted use if two of President Clinton's 1999 budget proposals are adopted. One proposal is to eliminate the Crummey-trust tax benefit of treating transfers in trust as present interests where donees have rights to withdraw annual additions. The second proposal would limit valuation discounts to active businesses. Family limited partnerships and family limited liability companies will increase in use if the proposals are adopted.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1998
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Should the gift of a limited partnership interest constitute a future interest?
Article Abstract:
Uncertainty exists regarding the IRS's position on whether gifts of interests in limited partnerships are gifts of future interests which are unqualified for the annual gift tax exclusion. The IRS in Private Technical Advise Memorandum 9751003 ruled that such gifts were future interests by incorrect reliance on fiduciary duties of general partners due to improper application of US Supreme Court precedent. Prior IRS rulings are relatively similar in reasoning but not in conclusions made.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1998
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Transfer of Subchapter S stock to a single-member LLC does not terminate S election
Article Abstract:
The IRS's determination that transfers of IRC subchapter S corporation stock to single member limited liability corporations will not terminate the S election provides continued tax planning and other benefits. Letter Ruling 9745017 may be useful in a nontax way by providing a means for shielding S stock from creditors. Care must be taken not to rely on consistency in IRS treatment and to have knowledge of state corporations and tax law.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1998
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- Abstracts: Impact of the new proposed and final check-the-box regulations on partnership tax status. Ninth Circuit Affirms That a Charitable Remainder Unitrust That Receives UBTI From Partnership Interests Is Subject to Tax On Its Entire Income
- Abstracts: Proposed regulations eliminate partnership interest transfer distortions but leave unanswered questions. Partnership's charitable contribution provides deduction to partners
- Abstracts: Building firm-specific advantages in multinational corporations: the role of subsidiary initiative. Subsidiary-specific advantages in multinational enterprises
- Abstracts: Drinking from the European cup. Adding insult to injury. Private functions
- Abstracts: What is on offer. A friend in sickness. Ways to buy your way out of trouble