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Showing all 16 results
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Family matters – Are cash advances gifts or loans for tax purposes?
November / December 2020
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: When friends and family members are struggling to make ends meet — like during the COVID-19 crisis — loved ones may give or lend money to help. However, it’s important to understand whether a client’s transfers will be classified as gifts or loans for tax purposes. This article summarizes a recent U.S. Tax Court case that highlights how the determination is made and how changes in circumstances may lead to different classifications for subsequent transfers. A sidebar highlights a gift tax case where value was determined by the transfer document, not the donor’s intent. Estate of Bolles v. Commissioner, T.C. Memo. 2020-71 (Tax Ct. June 1, 2020) Nelson v. Commissioner, T.C. Memo. 2020-81 (Tax Ct. June 10, 2020)
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Landlords and COVID-19: What are the tax implications?
November / December 2020
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: The COVID-19 pandemic has had a significant impact on landlords. Many tenants have struggled to meet their financial obligations, often resulting in late or unpaid rent or negotiated lease modifications. This article explains the tax implications of landlords’ leasing activities. A sidebar details the effects of lease modifications on Internal Revenue Code Section 467.
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A SPA trust can improve the flexibility of your estate plan
November / December 2020
Newsletter: Estate Planner
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: These are uncertain times. There’s uncertainty about the economy as well as the possibility of tax increases to address the rising federal debt. For example, there’s renewed interest in proposals that would slash the historically high gift and estate tax exemption. In light of this uncertainty, it’s a good idea to consider estate planning tools that offer asset protection as well as flexibility to adjust to changing circumstances. One such tool is the special power of appointment (SPA) trust. This article explains how a SPA trust can inject flexibility into an estate plan. A sidebar cautions readers about fraudulent transfer laws.
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To tax affect or not to tax affect? Federal case revives the tax-affecting debate for pass-through entities
September / October 2019
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: In Kress v. United States, a federal district court accepted the practice of tax affecting the earnings of so-called “pass-through” entities. It also rejected the application of a premium to reflect the tax advantages of owning a minority interest in a pass-through business. This article summarizes this case and explains why it’s fueling renewed interest in the tax-affecting debate, despite its limited precedential value. A sidebar highlights another key issue addressed in Kress — the effect of family transfer restrictions on the value of business interests for gift and estate tax purposes. Kress v. United States, 2019 WL 1352944, U.S. District Court, E.D. Wisconsin, Case No. 16-C-795, March 26, 2019
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To tax affect or not to tax affect? Federal case revives the tax-affecting debate for pass-through entities
September / October 2019
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: In Kress v. United States, a federal district court accepted the practice of tax affecting the earnings of so-called “pass-through” entities. It also rejected the application of a premium to reflect the tax advantages of owning a minority interest in a pass-through business. This article summarizes this case and explains why it’s fueling renewed interest in the tax-affecting debate, despite its limited precedential value. A sidebar highlights another key issue addressed in Kress — the effect of family transfer restrictions on the value of business interests for gift and estate tax purposes. Kress v. United States, 2019 WL 1352944, U.S. District Court, E.D. Wisconsin, Case No. 16-C-795, March 26, 2019
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Valuing “blue sky” – Why goodwill matters and how it’s measured
January / February 2018
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: Goodwill is an indefinite-lived intangible asset. It comes into play in various business valuation assignments. This article discusses what goodwill is and the role it plays in divorce and financial reporting. A sidebar highlights the differences between personal and business goodwill.
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What’s it worth? 3 approaches to valuing a business
November / December 2017
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: Business valuation professionals typically apply three different approaches when valuing a business. This article explains common valuation methods that fall under the cost, market and income approaches. A sidebar highlights the excess earnings method, which draws from both the cost and income approaches.
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Cavallaro v. Commissioner – Taxpayers allowed to vet valuations from IRS experts
September / October 2017
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: It’s critical for taxpayers to be given the chance to evaluate whether assessments made by the IRS are “arbitrary and excessive.” This article summarizes a recent gift tax case that the First Circuit Court of Appeals remanded to the U.S. Tax Court for further proceedings related to the valuation of the taxpayers’ business that the IRS relied on when computing its assessment against them — potentially giving the taxpayer a second chance at offering its own valuation evidence. A sidebar discusses why the appellate court wouldn’t shift the burden of proof to the IRS. Cavallaro v. Commissioner, No. 15-368, 1st Cir., Nov. 18, 2016
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Trying times – Keeping a loan afloat when a borrower becomes seriously injured or ill
June / July 2017
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: For a business highly dependent on its owner for day-to-day management and overall viability, owner injury or illness can threaten the business’s ability to function — and to make good on its loan. A lender has an important role to play in such a situation. This article explains that the lender’s actions can make all the difference in whether the owner is able to work through the challenges created by injury or illness. It also notes how the lender can help the owner face such problems squarely, so that a mutually beneficial solution is more likely. A sidebar suggests several questions to ask to help determine the impact of the owner’s ailment on the business.
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New lease accounting rules – What will be the impact?
Summer 2016
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: After 10 years of deliberations, the FASB has finally issued its new lease accounting rules with the publication of Accounting Standards Update No. 2016-02, Leases (Topic 842). This article discusses how off-balance-sheet leases are now history and the effect of the new rules on bank-loan customers. Other ramifications for banks also are examined. A sidebar discusses timing considerations for making the transition.
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Calculating damages in IP litigation – An infringer’s profits may be recoverable
September / October 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: To protect victims of intellectual property (IP) infringement, federal law provides several alternative measures of damages. While a plaintiff generally is entitled to recover lost profits attributable to the infringement (or, at minimum, a reasonable royalty), these lost profits can be difficult to measure or prove. In such cases, the plaintiff may be able to recover the infringer’s profits as a substitute. This article discusses the circumstances under which a plaintiff may use this remedy, and explains how valuation experts can assist — especially if involved early in the litigation process.
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Integration managers – Still points at the center of chaotic acquisitions
June / July 2014
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: Acquiring a company requires enormous time expenditures — more than most inexperienced business buyers realize until they’re in the middle of a deal. So buyers may want to appoint an integration manager (IM) to oversee the myriad details involved in an M&A. This article describes the role of the IM as the point person for the period between the successful close of deal negotiations and the completion of integration. A sidebar discusses where to look for employees with the skills and experience to serve as an IM.
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Worried about interest rate risks? Consider a swap agreement
March / April 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: The continuing uncertainty of the credit market is prompting concern among many owners and investors about the risk of rising interest rates. Some have turned to interest rate swap agreements to mitigate their risk. The arrangements, which are especially appealing when fixed rate loans are unavailable, can pay off for both borrowers and lenders. This article shows how these agreements work and how title insurance can play a role in securing the obligations they entail. A sidebar explains how some swaps are custom-made to fit the parties’ financing needs.
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The icing on the cake – A QPRT allows you to save estate taxes on your home while still living in it
May / June 2011
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: Now may be a good time to consider a qualified personal residence trust (QPRT), which allows a person to transfer their home to their children or other family members at a deeply discounted gift tax value. By doing so, they can remove the home’s value and any future appreciation from their taxable estate. And they can continue to live in the home indefinitely, which can be an excellent strategy if the property’s value is depressed and is expected to increase. But, as this article explains, it’s important to be aware of the requirements of a QPRT, along with capital gains tax ramifications.
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Class conflict – The rights of stockholders can become a board problem
October / November 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: For directors, satisfying their fiduciary duties to act in the best interests of the corporation and its shareholders is critical. But what if the interests of different corporate constituencies — such as preferred and common stockholders — conflict with one another? This article examines decisions made by the Delaware Chancery and Supreme courts in two separate cases involving the matter of preferred stockholders’ rights vs. those of common stockholders. A sidebar discusses a similar case, in which a board was unable to convince a court that the board’s decision to approve a merger was disinterested.
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One supports the other – A lean manufacturing environment benefits from lean accounting practices
Fall 2010
Newsletter: Manufacturer
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: Lean manufacturing is nothing new, but many don’t know that lean accounting is crucial to operating in a lean manufacturing environment. Lean accounting focuses on two goals: 1) converting financial statements into “plain English,” and 2) eliminating waste by taking the focus off the minutiae. This article describes some of the advantages of lean accounting vs. standard cost accounting, along with some of the disadvantages. A sidebar discusses the status of lean accounting in university curricula.