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Federal Tax Planning & Compliance

Federal Tax Planning & Compliance Insights

January 26, 2017 Kim Palmer

4 Ways Partnerships Can Offer Equity-based Compensation to Service Providers

When we talk about a business compensating its service providers — which can include employees, attorneys, brokers and real estate developers, to name a few — it can mean more than just paying wages, bonuses or fees. Many providers want more than a check; they want to share in, and...

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December 19, 2016

Passive Activity Self-Rental Rule Applies to S Corporations

If you own property and a business, there’s an obvious temptation to lease that property to the business. But be careful — you risk triggering the self-rental rule and catching the eye of the IRS. One creative couple tried to get around this by using an S corporation to lease their...

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November 01, 2016

IRS Targets Partnership Transactions and Liabilities with New Regulations

The IRS has issued three sets of regulations — final, temporary and proposed — addressing disguised sales of property involving partnerships, the allocation of partnership liabilities and several other issues related to partnerships. The regulations are largely intended to eliminate...

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July 13, 2016 Kim Palmer

Targeted Capital Accounts: The New Standard in Partnership Operating Agreements

Targeted capital allocations are becoming standard in new LLC or partnership operating agreements. Historically, operating agreements typically provided for income/loss allocations to the partners based on the safe harbor provided under IRC Regulation 1.704-1(b)(2). This was more of a “cash...

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August 20, 2015 Ray Polantz

Is a Corporate Tax Inversion An Option for Private Companies?

Can my private company benefit from a corporate tax inversion? I’ve been asked this question more frequently over the last few years as corporate tax inversions have gained momentum in the media and attention from politicians. The answer is, while you may be able to undergo a conversion, it...

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May 19, 2015 Ray Polantz

LLC vs. C Corp: Entity Structures for Foreign Owners Starting a U.S. Business

America is the land of opportunity. However, opportunity can mean additional tax considerations, especially for foreign individuals setting up a business on U.S. soil. It is imperative to structure the business appropriately from the beginning so as not to trigger any unintended U.S. tax...

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June 16, 2014

Filing the FBAR May Not Be Enough for Foreign Trusts

It is about this time every year when CPAs remind their clients that any foreign bank and financial accounts must be disclosed to the U.S. Department of Treasury by June 30th. My colleague Ray Polantz explains the foreign bank account reporting (FBAR) requirements in greater detail in his recent...

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May 29, 2014

Structuring Oil & Gas Deals: You Have Options

We certainly have seen an increase in oil and gas activity throughout Northeast Ohio over the past few years. One of the great aspects of oil and gas deals is the flexible structures they offer. Common conveyances include leases, subleases, sales, production payments, sharing arrangements and...

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January 28, 2014 Kim Palmer

When is a Property Sale Really a Sale?

(And why does it matter?

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September 13, 2012 Kim Palmer

Partnerships: Be Wary of Disguised Sale Rules

Oftenin the establishment of a new partnership, one partner (the contributing partner) contributes an asset such as land or a building and other partners contribute cash. This is especially common in the real estate industry and is a nontaxable transaction under Internal Revenue Code (IRC...

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