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Are you liable for net investment income tax? Learn strategies to reduce the risk
January / February 2024
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 1031
Abstract: During the last several years, the 3.8% net investment income tax (NIIT) has ensnared a steadily increasing number of taxpayers. Why? Because when the tax was enacted 11 years ago it applied to “high earners” — defined as single filers with modified adjusted gross income (MAGI) over $200,000 and joint filers with MAGI over $250,000. Those thresholds have never been adjusted for inflation. As a result, the number of taxpayers liable for NIIT has more than doubled during that time. This article explains how the NIIT works and provides strategies to reduce it. A sidebar explores whether a Roth IRA conversion might reduce NIIT liability.
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The CARES Act offers tax relief for businesses
July / August 2020
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 1031
Abstract: When it was signed into law in late March, the Coronavirus Aid, Relief and Economic Security (CARES) Act was the largest stimulus package in U.S. history. The law contains numerous provisions designed to help mitigate the economic impact of the novel coronavirus (COVID-19) pandemic, including welcome tax relief for businesses that is potentially relevant for all of 2020 and, in some cases, for past or future years, too. This article reviews the CARES Act’s provisions on net operating losses, business interest deductions and qualified investment property. A brief sidebar highlights payroll tax deferral and employee retention credit under the CARES Act.
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What standard should be used for divorce valuations? – Fair market value vs. fair value
Spring 2009
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 1031
Abstract: Courts have typically applied the fair market value (FMV) standard to estimate the value of businesses in divorce proceedings. Recently, however, attorneys for nonowner spouses have been increasingly requesting the use of the fair value (FV) standard. This article looks at a variety of cases over the last couple of decades. The arguments are worth noting, as the monetary difference between FMV and FV — for both owner and nonowner spouses — can prove substantial.
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Tax Court calculates its own values in FLP case
November / December 2008
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 1031
Abstract: In recent years, the U.S. Tax Court has heard its share of cases challenging the legitimacy of family limited partnerships (FLPs). In early 2008, though, it was presented with an FLP case in which the IRS merely challenged the taxpayer’s valuation. The court in Astleford v. Commissioner ultimately decided to pick and choose from the opposing experts’ conclusions to calculate its own values. This article explains how the court arrived at its numbers and what it could mean for taxpayers.