If you have a very large estate, say exceeding $10 million, you should meet with your tax advisor and estate planning attorney to discuss whether you should make big gifts during 2011 or 2012, which assets are good candidates for gifts, and how they should be transferred.
Tax tips and developments relating to partnerships
This week’s interview on Financial Insider Weekly is with attorney Frank Doyle. Our interview subject is, "What are income and estate tax benefits of family limited partnerships?"
Businesses that generate consistent losses are an audit flag to the IRS. Under Internal Revenue Code Section 183, if an activity isn’t engaged in for profit, the deductions for the activity are generally limited to the amount of income from the activity.
The IRS has issued a revenue procedure to help taxpayers left "holding the bag" when exchange intermediaries defaulted on completing exchange transactions relating to a bankruptcy of the intermediary.
New federal partnership Form 1065, Schedule B-1 about partnership ownership is required for 2009 partnership income tax returns. In family partnerships, many partners could show up to 100% ownership because of "attribution rules".