Month: March 2020
IRS Publishes Proposed Regulations on Basis Consistency Requirements… What Does It Mean to You?
I recently posted a blog about the Internal Revenue Service’s (“IRS”) new basis consistency requirements. On March 4, 2016 the IRS published related proposed regulations. Remember this law (Section 1014(f) of the Internal Revenue Code (the “Code”)) requires a...
Over 70 1/2 or Know Someone Who is? Help a Charity…
Generally distributions from traditional individual retirement accounts (“IRAs”) are subject to income tax. For example if you have a $100,000 IRA and take a $20,000 distribution you have to include that $20,000 on your Form 1040. Until 2014 individuals over 70 1/2...
Portability and Blended Families…May Not Be A Good Mix!
Portability has been discussed in a prior blog but as the federal statute is fairly new, case law has been scarce. A recent Oklahoma Supreme Court (the “Court”) case has lawyers rethinking prenuptial and postnuptial agreements and the drafting of estate planning...
BE AWARE OF UNKNOWN AGREEMENTS WITH YOUR IRA
IRA assets are protected from creditors and income taxes while the assets remain in the IRA. However, you need to be aware that transactions relating to your IRA may unintentionally create a taxable event. In the Department of Labor (“DOL”) Advisory Opinion Letter...
Unhappy Debtor…Creditor with Charging Lien against Debtor’s LLC Interest entitled to Debtor’s LLC Distributions…
Unhappy Debtor…Creditor with Charging Lien against Debtor’s LLC Interest entitled to Debtor’s LLC Distributions… A recent case, John A. Kostoglou v. John Fortuna illustrates the effect of a charging order on a member’s interest in a limited liability company (“LLC”)....
Proper Beneficiaries in an Intestate Estate? Recent Case Discusses Time Limitations of Paternity Testing
Proper Beneficiaries in an Intestate Estate? Recent Case Discusses Time Limitations of Paternity Testing. A recent case, Robinson V. Estate of John E. Robinson analyzed Florida law regarding the statute of limitations (“SOL”) on paternity testing when an individual...
Check out the NEW Internet TV Series, “Rescue Clearwater”, the true story of Clearwater Marine Aquarium
[subscribe2] Many of you know that I am a volunteer at the Clearwater Marine Aquarium (“CMA”) on the stranding, marine mammal and dive team as well as on the Board of Directors. What you may not know is that CMA is now producing a new internet television series,...
Estate Owns a Car? Be Careful!
When an individual passes away, assets held in such individual’s name (and with no named beneficiary) generally become assets of that individual’s estate. Assume the individual owns a car, dies and his child drives the car before someone is appointed as personal...
To Forgive is Divine but…it may also be taxable!
As many of you know the real estate crash caused many homeowners to owe more than the home was worth (“upside down”). There were many foreclosures and short sales and many banks would “forgive” the indebtedness deficiency of the homeowner. For example, you owned a...
Someone Dies…Do Not Forget Deadlines for the Subchapter-S Election!
Many entities are used for estate planning and for business operations. Often a corporation elects to be taxed a Subchapter S (“Sub-S”) corporation because of favorable taxation as a “pass through” entity instead of a “regular” corporation. Being taxed as a “regular”...