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Watch your step! — Step transaction doctrine can increase tax on FLP and LLC gifts
March / April 2012
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 1165
Abstract: Family limited partnerships (FLPs) and limited liability companies (LLCs) can allow the transfer of substantial amounts of wealth to loved ones at discounted values for gift tax purposes. But the entity must be treated as a legitimate, independent business, observing all business formalities. Otherwise, the IRS may conclude that the entity is a sham. It might then invoke the step transaction doctrine to collapse a series of transactions into a single transaction for gift tax purposes, dramatically altering the tax outcome. This article explains the doctrine, while a sidebar discusses the importance of filing proper documentation for an FLP or LLC.
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Liquidity risk – How to put the “L” in CAMELS
Fall 2008
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 1165
Abstract: The most successful community banks are the ones with solid systems for monitoring and managing risk. Historically, liquidity risk wasn’t at the top of most banks’ list of concerns. But the subprime mortgage crisis and credit crunch have made it a priority for banks as well as regulators.