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Showing 9 posts by Michael C. Zahrt.

How Does the New Pass-Through Deduction Work?

By now, you’ve probably read a variety of summaries about the new tax reform legislation. If you own a pass-through entity, you’ve probably wondered whether you should convert to a C Corporation (if you’re still wondering about that, check out Should You Convert Your Business to a C Corporation?).  You may also be wondering how the new pass through deduction you keep hearing about works. That’s what we’re going to try to explain here. Read More ›

Categories: Tax

IRS to Announce Proposed Regulations on Full Expensing

Bloomberg BNA reports that the IRS is expected to announce proposed regulations for the full expensing provision under Code Section 168(k) sometime late-June or early-July. Read More ›

Categories: Personal Property Tax, Property Tax, Tax

Should You Convert Your Business to a C Corporation?

One of the biggest questions after the passage of tax reform is whether business owners should convert their pass-through entities to C Corporations to take advantage of the lower 21% tax rate.  The answer to this question depends on your business goals. If your goal is to pass as much profit to yourself as possible, you should generally stick with the pass-through entity. Read More ›

Categories: Did you Know?, Tax

Tax Reform is Coming

The Senate is anticipated to vote on its own tax reform bill in the near future.  Read More ›

Categories: Tax

Projected Increase of Annual Gift Tax Exclusion

Each year a variety of items in the Internal Revenue Code are updated based on inflation, specifically the consumer price index. Read More ›

Categories: Income Tax, Tax

Reevaluating Valuation: IRS and Treasury Propose Rules Restricting Valuation Discounts

On August 2, 2016, the IRS and U.S. Department of Treasury issued highly anticipated proposed regulations concerning the valuation of interests in certain family-controlled businesses for estate, gift and generation skipping transfer tax purposes. The proposed rules would curb the use of most discounts that are applied when valuing intra-family transfers.  Read More ›

Categories: Compliance, News & Events, Tax

Tax Planning for Family Businesses

Was your tax bill higher than what you had wanted it to be this year? It may be time to consider either changing your business structure or your business operations to be more tax efficient. Learn some quick tips from Attorney Mike Zahrt in the short video below.

Categories: Compliance, Tax

Michigan Supreme Court Clarifies Use Tax Exemption Apportionment Rules

On July 22, the Michigan Supreme Court decided Detroit Edison Company v. Department of Treasury, holding that the Michigan Use Tax apportionment rules apply in situations where property is simultaneously used for exempt and non-exempt purposes. The claim was initiated by Detroit Edison Company ("DTE") in response to a use tax audit by the Department of Treasury. The audit determined that DTE wrongly claimed an exemption from use tax for property used outside of its plant (transformers, fuses, circuit breakers, etc.), resulting in a deficiency assessment of over $13 million plus interest.  Read More ›

Categories: News & Events, Use Tax

New Law Allows Michigan Taxpayers to Appeal Tax Disputes without Paying First

New Law Allows Michigan Taxpayers to Appeal Tax Disputes without Paying FirstOn June 16, 2015, Gov. Rick Snyder signed into law Enrolled Senate Bill 100, which eliminates the requirement that taxpayers pay contested taxes, penalties and interest before appealing their liability to the Michigan Court of Claims. The bill was introduced by Senators Brandenburg, Horn, Zorn, Emmons, Colbeck, Schmidt, Hansen, Casperson, Nofs and Booher.

Prior to the enactment of this law, a taxpayer had two options to appeal an adverse tax assessment or decision:

  1. the taxpayer could appeal the case to the Michigan Tax Tribunal without paying disputed amounts; or
  2. the taxpayer could appeal the case to the Michigan Court of Claims, but only after paying the taxes, penalties, and interest assessed, even if those amounts were being contested. 
Read More ›

Categories: News & Events, Tax, Tax Disputes