Author: Elf
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The Trust Beneficiary’s Right of Access to Information
Beneficiaries have the right to know certain information about a trust, but sometimes trustees refuse to provide it. This can lead to beneficiaries feeling upset and hiring lawyers. In some cases, the trustee may not know their responsibilities or may intentionally withhold information. This article explains what information beneficiaries can get under Florida law and…
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Changes in the U.S. International Tax System Proposed by the Biden Administration
Before the Tax Cuts and Jobs Act, the US had a tax system that theoretically imposed US tax on all foreign income of a US-based multinational company. However, there were ways for companies to reduce or avoid paying these taxes, such as forming subsidiaries in lower-tax foreign countries. These subsidiaries could shield profits from US…
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The Taxation of Cryptocurrencies
Cryptocurrency and blockchain technology have become very popular and valuable in recent years. Cryptocurrency, like Bitcoin, is a type of digital money that uses cryptography to keep transactions secure. It’s stored in digital wallets and relies on blockchain technology, which is a way of storing and keeping track of information. This technology is important for…
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Funding the Estate Tax: Defusing the Liquidity Time Bomb
It seems like the rules around estate taxes might be changing soon. If they do, more people might have to pay taxes on their estates when they die. As lawyers, we help our clients figure out how to pay as little tax as possible and in the least disruptive way. In this article, we talk…
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Corporate Transparency Act to Have Major Impact on Clients and Attorneys
Congress passed the National Defense Authorization Act of 2021, which includes the Corporate Transparency Act. This Act creates a new reporting requirement and database for ownership of U.S. companies, which could affect clients and lawyers when the new regulations take effect. The Act also includes the Anti-Money Laundering Act of 2020, which aims to strengthen…
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Tax Penalties After VMOB: What to Know and How to Fight Back
In 2020, a court decision in Florida changed how tax penalties work for businesses. The case, VMOB, LLC v. Florida Department of Revenue, means that officers or directors of a company can be held personally responsible for the company’s tax debt. The court’s decision could be risky for taxpayers who don’t know about it. The…
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Navigating I.R.C. §2036 Tax Planning with Florida Law
For many years, a common technique in estate planning has been to create a partnership or LLC to hold valuable property and then transfer ownership interests to a trust to avoid estate tax. However, the IRS may challenge these transfers as an attempt to pass untaxed wealth to future generations while still maintaining some control…
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Preparer Penalties: The Thin Line Between Tax Advisor and Return Preparer
The IRS has given out over 1.8 million tax preparer ID numbers since 2010, with almost 700,000 still active. Anyone who gets paid to prepare tax returns is considered a “tax return preparer.” Even if you’re a lawyer giving legal advice that ends up in a tax return, you’re also considered a preparer. The IRS…
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Expatriation from the United States: The Inheritance Tax Under I.R.C. §2801
The Heart Act added a new tax called the Inheritance Tax, which applies to gifts or inheritances received from someone who has given up their U.S. citizenship. This tax is paid by the person who receives the gift or inheritance, not the person who gave it up. The tax rate is 40% of the value…
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Reflections on a Vetoed Bill
Gov. Ron DeSantis vetoed a bill that would have given the Department of Revenue more power during tax audits. The bill would have allowed the department to punish businesses that don’t cooperate during audits by suspending their licenses. It also made it easier for the department to estimate how much tax a business owes. While…
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QDRO Math: Advice to Plan Administrators in Florida
A legal firm and attorney have been accused of mishandling a case and taking advantage of their client. The client is suing for being treated unfairly and not receiving proper compensation. The legal firm and attorney deny the accusations and are fighting the lawsuit in court. ERISA is a law that protects retirement funds from…
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Innocent Spouse Relief from Joint and Several Federal Tax Liability: Updates, Hurdles, and Considerations
Married couples can file their taxes together or separately. It’s usually better to file together because you’ll pay less in taxes. But if you file together, both spouses are responsible for the full amount of taxes owed. This can be unfair if one spouse didn’t know about the income that caused the taxes. In those…
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Internal Revenue Code §1202 and You: Analyzing Exclusion of Gain on Sales of Small Business Stock
Section 1202 of the Internal Revenue Code allows small businesses to exclude some or all of the gain from stock sales. Small businesses can plan for this benefit when considering selling their business. Tax professionals can help determine if a business qualifies for the gain exclusion. The article focuses on businesses that do consulting, as…
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Designing Trust Systems for Florida Residents: Planning Strategies, Things You Should Know, and Traps for the Unwary
Trusts are commonly used for estate and financial planning. They help avoid probate and protect assets. There are different types of trusts and it’s important to understand the implications before funding one. For unmarried individuals, a revocable trust is often used to avoid probate and maintain control over assets. However, in some cases, it may…
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Corporate Transparency Act Reporting Rules Finalized, But Will Access Issues Cause Delay?
A new law called the Corporate Transparency Act (CTA) is going to start on January 1, 2024. The government released rules for banks to access a database with information about the owners of companies. But the banks and state bankersâ associations think the rules are not good. They said that the rules would make it…
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Foreign Grantor Trust Planning: A Flexible Planning Structure for U.S. Income Tax
Tax specialists help families with members in multiple countries set up special trusts to avoid certain U.S. taxes and keep tax advantages. This can be really useful for families where a parent is not from the U.S. and has kids and grandkids who are. The trust helps the family save money on taxes and deal…
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The Cashless Real Estate Deal: Beware of Phantom Withholding on Foreign Partners’ Income
When the real estate market goes down, it can result in more transactions where people can’t pay their debts. This can lead to something called cancellation of indebtedness income (COD income). In Florida, the commercial real estate market has been hit hard by hurricanes, causing insurance rates to go up a lot. This means that…
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Pre-Immigration Planning with the Foreign Trust: The Intersection of Income and Estate Tax
If someone from another country puts money into a trust in their home country and the trust makes money, the U.S. only taxes the money from the U.S. The trust can also be set up to benefit people in the U.S., but they only pay taxes on the money they get from the trust. If…
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Tax Considerations for Contingent Interest and Convertible Debt in Cross-Border Lending Transactions
When it comes to paying interest on debt and converting debt into shares, there are different tax rules that can apply. These rules can get pretty complicated and may have different meanings, depending on the situation. For example, there are special tax rules for debt that makes payments that depend on certain conditions. There are…
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The Art of Licensure
As a lawyer, I can help you navigate the licensing process for your career. If you have a past criminal conviction or other issues, it can make getting a license more difficult. I can advise you on how to present your case in the best light and help you respond if you receive a denial…
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Arbitration and Attorneys’ Fees Issues: An Attorney’s and Arbitrator’s Viewpoint
Our court system is crowded, so people are turning to arbitration to solve their problems instead. It can be faster and cheaper, and it’s easier to enforce decisions in other countries. But there are still some issues that need to be worked out, like who pays the lawyers’ fees in arbitration. This article will explain…
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1998 Changes to Public Works Bonds and Construction Lien Law
Florida’s Construction Lien Law was changed in 1998 to address issues with construction liens and payment bonds for public works. The changes reflect compromises between different groups in the construction industry, but there may still be questions about the language used. Confusing parts of the law are usually fixed in the next year. The law…
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Subcontractors/Suppliers Beware: Form Over Substance
Recently, Florida courts have been prioritizing following the rules exactly, rather than understanding the reason behind them. This is important for people in the construction industry to pay attention to. The issue is with F.S. §713.06, which says that subcontractors and suppliers who don’t have a direct contract with the owner of a property have…
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Moransais v. Heathman and Its Aftermath
The decision in Moransais v. Heathman in 1999 changed the way design professionals can be held accountable for their mistakes in construction projects. Before this decision, it was difficult for people to sue architects and engineers for economic damages caused by their negligence. But now, the Florida Supreme Court has allowed these lawsuits to move…