Our tax planning experience has encompassed both acquisitive and divisive reorganizations (e.g., spinoffs and split-ups), counseling on choice of a business entity, formation of corporations without recognizing gain, Subchapter S corporation planning, non-qualified deferred compensation plans, comparisons of qualified retirement plans, stock redemptions, recapitalization of corporations, stock buy-outs, purchase and sale of business assets and of interests in partnerships and limited liability companies, and general income tax planning for individuals, trusts, and probate estates. We also have prepared income tax returns for individuals, corporations, trusts, and estates.
We advise clients concerning the best choice of entity to use, tax favorable ways to hold real property, tax favorable ways to structure transactions to purchase an interest in a business and to sell an interest in a business, methods by which to stretch out mandatory withdrawals from IRA’s, income tax issues and valuation issues involved in corporate shareholder agreements, partnership agreements, and limited liability company operating agreements, fiduciary income tax return issues (which apply to trusts and to probate estates), and other issues.
Our tax planning practice encompasses also federal and state gift tax planning, estate tax planning, generation-skipping transfer tax planning and utilized many techniques to minimize or avoid such taxes. Irrevocable trusts and business entities are used to achieve discounts for transfers, and other techniques also are used to use tax exclusions, exemptions, and credits.
The federal gift tax imposes a federal tax upon the gratuitous transfer of property by a donor during the donor’s life. It is separate from income taxation, from estate taxation, and from generation-skipping transfer taxation. The gift tax annual exclusion and gift tax credit can be used to avoid imposition of a gift tax.
A gift to a person who is the donor’s grandchild or more remote or to certain others invokes the federal generation-skipping transfer taxation scheme, which then can require planning in order to avoid unnecessary taxation.
Federal estate taxation focuses upon transfers of property at death, and it also can invoke the federal generation-skipping transfer taxation scheme.