Many LLCs and partnerships amended their governing documents in 2018 because of the various new tax rules that came into effect last year.
For example, many pass-throughs converted so-called “guaranteed payment” arrangements. Under new IRC Section 199A, certain types of income qualify for a lower income tax rate – depending on the facts, the federal tax on such income can be reduced by as much as 20%. However, this tax benefit does not apply to […]
It has been almost a year since passage of the most sweeping tax legislation, known as the Tax Cuts and Jobs Act (“TCJA”), in more than 30 years. This legislation represented the most comprehensive change to the tax code in a generation and greatly modified the income, estate, gift and generation-skipping taxes for individuals, businesses, estates and trusts. While this new tax code is complex and guidance and interpretation continue to evolve, there is […]
With the historically high gift and estate tax exemption amounts ($11,180,000 in 2018, increasing to $11,400,000 in 2019) currently in effect, wealthy taxpayers are encouraged to make lifetime gifts to use up some or all of their lifetime estate tax exemption before the tax law changes or the exemption amount “sunsets” on December 31, 2025. However, there has been some concern among advisers that a future reduction in the estate tax exemption could trigger […]