Employment Taxes, LLCs, and Asset Protection- September 30, 2006 The Limited Liability Company &40;LLC&41; is a flexible legal entity that allows taxpayers to elect how they want to account for their state and federal tax liabilities. Unfortunately many taxpayers do not understand issues surrounding whether they should use the LLC and in what form to achieve their tax and asset protection goals. This article will briefly discuss one issue in this analysis, namely employment or payroll tax liabilities. The IRS regards a single member LLC &40;i.e, a LLC...http://www.colorado-estateplanning-attorney.com/2006/09/employment-taxes-llcs-and-asset Asset Protection Steps Cannot Include Fraudulent Trasnfers- September 27, 2006 Asset protection planning is best done in advance of any claims or the person becoming insolvent. Planning opportunities after that point may constitute violations of the state andor federal fraudulent transfer act. Leverage Leasing Co. v. Smith provides a good example of this concept. Leverage Leasing Co. refinanced a $200,000 loan to Kenneth and Carol Smith. Prior to this refinancing loan the Smith&39;s personal residence was titled in Carol&39;s name only. At the request of Leverage...http://www.colorado-estateplanning-attorney.com/2006/09/asset-protection-steps-cannot-incl... Estate Tax Valuation vs. Income Tax Valuation- September 26, 2006 The question in Janis v. Commissioner is whether a taxpayer can claim that property has a low value for estate tax purposes and then turn around and claim that the property has a high value for income tax purposes. The Ninth Circuit said &34;no,&34; but the answer could have been different under slightly different facts. Conrad and Maria Janis inherited a gallery of artwork from Conrad&146;s father. The artwork consisted of over 500 pieces of art by famous artists, such as Piet Mondrian,...http://www.colorado-estateplanning-attorney.com/2006/09/estate-tax-valuation-vs-income-tax Rental Real Estate & the Passive Activity Rules- September 25, 2006 More and more Americans are investing in real estate due to the appreciation of real estate markets in the past few decades. The real estate tax rules are complex. This complexity causes a number of taxpayers to not realize the full tax benefits associated with their real estate investments. This article will briefly address the passive activity limitation rules as they relate to rental real estate investments and it will point out some basic planning opportunities. In general the passive...http://www.colorado-estateplanning-attorney.com/2006/09/rental-real-estate-passive-activit... |