Tax Law Defined® Blog

Showing 16 posts in Federal Tax.

Special Timing Rule

Special timing tax rule

Are You Withholding Too Much on Nonqualified Deferred Compensation?

If you have a nonqualified deferred compensation plan for select employees, you are probably aware that benefit payments under a properly structured plan are generally not taxable for income tax purposes until the payments are received by the employee. Read More ›

Unitary is Alive and Kicking in The Commonwealth

As a part of the generational legislation on Kentucky tax passed last April via 2018 HB 486, the General Assembly for the first time in history enacted formal, mandatory unitary combined reporting (MUCR) as a required method of compliance for purposes of the Kentucky corporation income tax. Read More ›

Section 1202 Qualification Checklist and Planning Pointers

We recently published four articles discussing the potential benefits of holding and selling Qualified Small Business Stock (QSBS) under IRC § 1202 and diving into the complicated qualification rules. Based on the volume of responses to those articles, we felt that a basic checklist of qualification requirements would help business owners and tax professionals considering structuring or restructuring a business to take advantage of IRC § 1202, or trying to confirm whether their stock is QSBS. Read More ›

Planning Beyond the Buy-Sell – Ownership Structure Considerations for Closely Held Business Owners

Planning Beyond the Buy-Sell – Ownership Structure Considerations for Closely Held Business Owners

Most closely held business owners recognize that a properly drafted and current buy-sell agreement is an important document that addresses what happens to an owner’s interest in the company in the event of divorce, disability, or death.  What is not commonly known is that how owners hold their respective interests in the company also requires close consideration.  Read More ›

Revisiting the Choice of Entity Decision for Closely Held Businesses

Revisiting the Choice of Entity Decision for Closely Held Businesses

Shifting the focus from understanding the Tax Cuts and Jobs Act to considering whether what has changed significantly alters the choice of entity landscape. Read More ›

A Roadmap for Obtaining (and not Losing) the Benefits of Section 1202 Stock

Planning Ideas for Avoiding IRC § 1061's Three-Year Holding Period Requirement

IRC § 1202 has been around for years, but has not received a lot of attention. This inattention has resulted in large part from IRC § 1202's complicated qualification rules, not to mention the planning uncertainties associated with a required five-year holding period. Read More ›

Equity Rollovers in M&A Transactions: Tax and Business Planning Fundamentals

Equity Rollovers in M&A Transactions: Tax and Business Planning Fundamentals

During the past decade, private equity investors and other financial buyers (referred to generally in this article as financial buyers) have dramatically increased their activity in the M&A marketplace. These financial buyers generally acquire portfolio companies with the intention of holding them for around five years and then selling them for a substantial profit. Read More ›

Planning Ideas for Avoiding IRC § 1061's Three-Year Holding Period Requirement

Planning Ideas for Avoiding IRC § 1061's Three-Year Holding Period Requirement

Investment fund managers value compensation in the form of carried interests, which allows them to be compensated for services with income that qualifies for long-term capital gains tax treatment. Numerous efforts have been made during the past decade to cut back or eliminate the favorable tax treatment of carried interests. Read More ›

How New IRC § 1061 Impacts Carried Interests

How New IRC § 1061 Impacts Carried Interests

During the past decade, the White House, Congress and the IRS have threatened on numerous occasions to reduce or eliminate the tax benefits of carried interests ("promotes" in the real estate world). In 2009, legislation was introduced that would have taxed all income from carried interests as ordinary income. Read More ›

Make Submissions Now for Ohio’s New Opportunity Zone Program

Make Submissions Now for Ohio’s New Opportunity Zone Program

The Tax Cuts and Jobs Act of 2017 created a new community development program that provides capital gains tax relief to private investment within “qualified opportunity zones.” Under the Act, Ohio Governor Kasich may nominate up to 329 eligible census tracts for designation as “qualified opportunity zones” in the State of Ohio. Read More ›

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Attorney Spotlight

Alison M. Stemler is FBT’s Employee Benefits Team leader. She advises on executive compensation and employee benefits plans, including equity-based and deferred compensation arrangements, and assists with compliance issues for retirement and welfare plans and HIPAA.

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