Author: Elf
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International E-Discovery: How The 11th Circuitâs Interpretation of Possession, Custody, or Control May Impact Multinational Corporations
Courts have different ways of deciding who has to hand over electronic information in a legal case. In some places, the rule is based on who legally owns the information, while in others it’s based on who can actually get it. This can be a big issue, especially in places like South Florida, where a…
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The Basics of Forming Florida Nonprofit Organizations
Most nonprofits in Florida are formed under the Florida Not For Profit Corporation Act. This act governs how the nonprofit is organized and operated. Nonprofits can have members with voting rights or no members at all. If the nonprofit decides to have members, the articles and bylaws must specify their voting rights for important decisions.…
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Tax Consequences of a Power to Terminate a Nonmarital Trust
Trust documents often include a provision to end the trust if it becomes too small to manage or if its purpose is achieved before the stated end date. This power can have tax consequences, so it’s important to consider before including it in a trust document. There are two types of powers to terminate a…
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Aggressive Planning for Florida’s Annual Intangible Tax
The State of Florida charges a small tax on certain kinds of property. Most people pay it every year, but some rich people can avoid it by using special trusts or partnerships. These methods require some careful planning and follow specific rules. The annual intangible tax in Florida is a tax on certain types of…
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Pension Simplification: The Ultimate Oxymoron?
The Tax Reform Act of 1986 made big changes to retirement plans, making things more complicated and expensive for employers. But in 1996, the Small Business Job Protection Act was signed into law, addressing concerns and making changes to simplify 401(k) plans. One change was using data from the previous year for testing, instead of…
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Why Relying on Cristofani to Draft Trust Withdrawal Powers Is a Crummey Idea
The IRS has issued new rules that restrict how people can use “Crummey powers” to avoid paying gift taxes. These rules clarify that a gift must be immediately available for the recipient to use in order to qualify for a tax exemption. This is important because it affects how much money can be given each…
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Representing Clients Before the DOR and in State Tax Litigation
If you get a letter from the Department of Revenue saying they want to check your records, don’t panic. If they find a problem, you’ll get another letter with their proposed changes. You can disagree with their findings and file a protest. If you don’t, the changes become final and you can take the case…
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Estate, Gift, and Trust Tax Changes Made by Taxpayer Relief Act of 1997
In 1997, the Taxpayer Relief Act made changes to estate and gift tax laws. It increased the unified credit for estate and gift taxes, meaning people could exempt more money from these taxes. The maximum federal tax rate also increased for very large estates. However, compared to previous tax acts, the overall impact of the…
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Planning to Maximize the Section 2013 Credit
The TPT credit, allowed by the tax code, is a benefit for estate planning and administration. It can help in filing federal estate tax returns and can be used to plan for maximizing its potential benefit. It’s important to understand how it works and to consider it in both estate planning and administration phases. The…
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1997 Tax Changes: Capital Gains Tax and Sale of a Primary Residence
In 1997, President Clinton signed a new tax law that changed how capital gains are taxed for individuals. For example, if a couple named Sam and Sally Smith decide to sell some stocks and other assets, they need to consider these new rules to figure out the best time to sell. Under the old rules,…
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The Roth IRA: What a Great Deal!
The new Roth IRA is a way for taxpayers to save and invest their money for the future. They can put in a few thousand to millions of dollars and the money grows tax-free. When they take the money out, they don’t have to pay taxes on it, as long as the account has been…
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A Practical Discussion on Advising the Lottery Winner
If someone in Florida wins the lottery, their advisors need to understand the tax issues related to their winnings. It’s important to plan ahead to save as much money as possible on income, gift, estate, and generation-skipping taxes. If a client wins, they should not sign the ticket until they figure out who owns it.…
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International Implications of Check-the-Box Regulations
Entities can be classified as either a corporation or a partnership, and this classification affects how they are taxed. Partnerships don’t pay income tax themselves, but instead, their income is passed on to the individual members, who then report it on their tax returns. This means that members can claim losses and credits directly on…
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Recent Developments Affecting 501(c)(3) Organizations
501(c)(3) organizations are facing more scrutiny from the government when they do business with private individuals and companies. A recent court case ruled that if a tax-exempt organization works with a professional fundraiser, they could lose their tax-exempt status. Another ruling says that tax-exempt hospitals can’t give their facilities to for-profit partners without consequences. Congress…
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Estate Planning with Tenancy by the Entireties Property
Last New Year’s Eve, the IRS issued final regulations about disclaimers of tenancy by the entireties property, which was a cause for celebration for estate planners. However, there is still a problem in Florida that needs to be resolved before a surviving spouse can disclaim their interest in such property. This article will discuss the…
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Challenging Tax Assessments on Contaminated Property in Florida
Environmental contamination can lower the value of property, but it’s often overlooked when assessing property taxes. In Florida, this is a big issue because there are many sites contaminated with petroleum and other chemicals. Even if the state offers to help clean up the sites, it’s slow and underfunded. Property owners can challenge their assessments…
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TRA 97 Is Not the Only Reason to Review Existing Estate Plans Involving Closely Held Stock
The Taxpayer Relief Act of 1997 provided a tax benefit for family-owned businesses, allowing an exclusion from a person’s taxable estate. This is important to consider when making estate plans involving closely held stock. There have been significant cases and IRS rulings that affect estate planning for closely held stock. In a hypothetical scenario, a…
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Proposing Solutions to the Property Tax Structure and the Right of Citizens to Contact Local Elected
Should the law be changed to allow for more property tax exemptions for government and special district properties? Should citizens have more access to local officials to communicate about public hearings? These are some of the questions proposed in the Constitution Revision Commission’s Revision 10. The Florida Supreme Court has said that municipalities should pay…
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Defending the Accumulated Earnings Tax Case
Summary: The legal firm and attorneys are helping a famous singer deal with a contract issue. They are demanding fair treatment and compensation for the singer. The penalty tax for the unreasonable accumulation of corporate earnings is a part of the Tax Code and is meant to prevent corporations from keeping too much money without…
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Planning for Large Estates After TRA 97: A New Look at Some Old (Charitable) Friends
The Taxpayer Relief Act of 1997 didn’t actually provide relief for many rich people because the estate tax credit is only available for estates worth less than $10 million. This means that larger estates still face a 55 percent tax rate, just like before. As a result, estate planning techniques like life insurance trusts and…
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Business and Tax Planning with the Portfolio Interest Exemption
The United States usually taxes foreign companies at a flat rate of 30 percent on any interest they receive from American sources. However, there’s a special rule called the portfolio interest exemption that can lower or eliminate this tax. This exemption doesn’t apply if the interest is connected to a U.S. business. This means that…
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The Innocent Spouse Rule: Variations on a Theme
When a couple gets married, they file their taxes together. This means that both spouses are responsible for paying the correct amount of taxes, even if one spouse didn’t earn much money. If one spouse makes a mistake on their taxes, the other spouse is still on the hook for it. If the couple separates…
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Does a Spousal Elective Share Carry Out DNI?
In some states, old laws about what a spouse gets when their partner dies are no longer valid. Instead, there are new rules about how much the surviving spouse should get from the deceased spouse’s stuff. These new rules take into account things like the debts the deceased spouse owed, the cost of their funeral,…
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Alternate Valuation: The Silver Lining to the Cloud Over the Market?
In 1998, the stock market took a big hit, causing a lot of people to lose money. But one good thing that can come out of it is potential estate tax savings. If someone dies when the stock market is high, their estate might have to pay a lot in taxes. But if the stock…