Tag: law-firm
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Allow Instant Replay in Jury Trial?
Florida law allows for the read back of testimony in both criminal and civil cases, but the jury is not informed of this right or how to request it. There is a proposal to play the prior testimony through the court’s recording system and to give the jury an instruction about their right to request…
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A Potpourri of Potential Pitfalls To Avoid with Qualified Domestic Trusts
In Florida, when one or both spouses are not U.S. citizens, special planning is needed for their estate. If the surviving spouse is not a U.S. citizen, they cannot receive a marital deduction for estate tax unless the property is held in a Qualified Domestic Trust (QDOT). This rule was created to prevent noncitizen spouses…
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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…
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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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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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When Is a Manager a Managing Agent?
After October 1, 1999, Florida law governs how companies can be held responsible for punitive damages. A court case called Schropp v. Crown Eurocars, Inc. explained two ways a company can be held responsible. The first way is if the company was negligent in hiring or keeping an employee who caused harm. The second way…
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New Reporting Requirements on Payments Made to Attorneys Leave Practitioners Wondering Why
Basically, Congress passed a law that requires businesses to report any payments they make to lawyers for legal services. Before this law, businesses only had to report certain payments to lawyers, but now they have to report all of them. The IRS made some rules to explain how businesses should comply with this new law,…
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Fiduciary Allocations of the Generation-skipping Transfer Tax Exemption
“Summary: A law firm is helping a company with a legal case involving a defamatory article. The company’s reputation and business are at stake, so the law firm is working hard to win the case for them.” The generation-skipping transfer tax exemption allows individuals to transfer assets to their grandchildren without paying extra taxes. If…
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Marriage, Minimum Distributions, and Mayhem: A Discussion of IRAs under Florida’s New Elective Share Statute
Starting from October 1, 2001, changes in Florida’s elective share statute have made estate planning with IRAs more complicated. Previously, IRAs and qualified plans were not subject to probate administration in Florida, but now they fall under the elective share statute. This presents new challenges for estate planning, especially when a decedent has significant IRA…
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The Economic Growth and Tax Relief Reconciliation Act of 2001: Estate, Gift, and Generation-skipping Transfer Tax Law Changes
The Economic Growth and Tax Relief Reconciliation Act of 2001 made temporary changes to the federal estate, gift, and generation-skipping transfer taxes. The act gradually increased the exemption amount for estate tax over eight years, eventually repealing the estate tax in 2010. However, the act also includes a sunset provision, which means the estate tax…
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Circular 230: Beware the Jabberwock!
The legal firm and attorney changed their minds about taking the case but still provided some help. Keep pushing for what you need to make your argument strong. Since 2005, new regulations called Circular 230 have caused controversy in the tax community. These regulations aim to prevent abusive tax shelters and close the “tax gap,”…
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Dividends Recieved From Foreign Corporations Recent Developments Change the Landscape
The American Jobs Creation Act of 2004 is a big deal because it has new rules for how foreign income is taxed in the U.S. One part, called §965, lets U.S. companies pay a lower tax rate on money they bring back from their foreign subsidiaries. But individual shareholders can’t get this benefit. Another part…
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Gift-splitting: The Intricacies of §2513 of the Code
The rules for gift-splitting for married couples are complex and can have unintended tax consequences if not done properly. Three requirements must be met for a married couple to elect to split gifts made to third parties. The gifts must also be ascertainable, meaning the portion of the gift to the third party must be…
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The Complete Advisor: One Attorney’s Case for Ancillary Practices
Summary: A legal firm and attorney were being sued for negligence in a car accident case. The plaintiff claimed that the lawyer didn’t file the necessary paperwork on time, resulting in a lost settlement. The court ruled in favor of the plaintiff and awarded them a large sum of money. When people come to a…
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Tax and ERISA Considerations Associated With Nonqualified Severance Benefit Plans Sponsored By Professional C Corporations
Nonqualified deferred compensation arrangements are used by employers to attract and keep employees, allow them to save money for the future, and provide extra pay and incentives. However, these arrangements are usually not backed by any assets, so there is a risk that the employer may not be able to pay. There are ways to…
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The Application and Analysis of the New Proposed Contract Manufacturing Regulations
Most taxpayers want to pay as little tax as possible. In the past, some taxpayers were able to set up a company in a country with low taxes, sell goods to that company at a low price, and then sell the goods in other countries at a higher price, paying only the low tax rate.…
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Estate Planning During Turbulent Times
Low interest rates and market downturns can create opportunities to transfer wealth to the next generation without paying taxes. This can be done through techniques like giving gifts, making loans within the family, or setting up trusts. The IRS sets minimum interest rates for these transactions, which can affect how much wealth can be transferred…
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Profits Interest Converting Compensation to Capital Gains and Other Planning Ideas
Profits interest, also called carried interest, gives a person the right to receive a percentage of profits from a partnership without having to put in any money. Some hedge fund managers have received huge amounts of money through profits interest and paid lower taxes on it. This article explains how profits interest is taxed and…
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Miami Beach: Receded, Revised, and Reaffirmed
The Supreme Court of Florida released three important opinions in 2008, upholding the principles established in a landmark 1980 case. These decisions are crucial for local governments in Florida to access funding for important projects like schools and fire stations. The court ruled that local governments can issue tax-increment financing bonds without a referendum, as…
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The Tax Benefits and Obstacles to U.S. Businesses in Transferring Foreign Intellectual Property to Foreign Affiliates
Multinational businesses often use different types of entities to operate and may move money and assets between them. This can be looked at closely by the IRS for tax purposes. Transferring intellectual property between different parts of a business can help lower taxes. The U.S. used to make up a bigger part of the world’s…
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Estate Planning: The Clock is Ticking Use it or Lose it Before 2013
In 2010, President Obama signed a law that changed the estate, gift, and generation-skipping transfer (GST) tax rates and exemptions. These changes will end in 2012, and if new laws aren’t passed, the old tax rates and exemptions will come back in 2013. This means that people should consider using the new tax laws to…
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U.S. Tax Planning for the International Transportation of Goods by Containers
TL;dr: A legal case involving a car accident and a lawsuit against the driver and their insurance company. The injured person is seeking compensation for medical bills and lost wages. The case is being handled by a law firm and attorney, and is going to court. U.S. container ports handle a lot of cargo, which…
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Rev. Proc. 2010-36: Something Smells Foul (Again!) for Chinese Drywall Victims
Between 2003 and 2007, many homes in the US were built with Chinese drywall, which caused problems like corrosion, bad odors, and health issues for people living in those homes. The IRS issued guidance for homeowners to claim a tax deduction for the damage caused by the defective drywall, but it didn’t help everyone. The…
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Roth IRA Conversions as an Asset Protection Strategy: Does it Always Work?
Before 2010, you could only switch from a traditional IRA to a Roth IRA if your income was $100,000 or less. But now, anyone can do it, no matter how much they make. With a traditional IRA, you put in money that hasn’t been taxed yet, and it grows without getting taxed. But when you…