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Showing 14 posts by Michael C. Zahrt.

Business Owners: How to Avoid Additional Estate Taxes after Connelly v. Commissioner

Worried Business Owner going through taxesIn early June, the Supreme Court issued an opinion that clarifies how company-owned life insurance impacts the value of the company for estate tax purposes. As a business owner, you may need to re-evaluate the use of those policies and whether they will subject you to increased estate tax exposure. Here’s what happened in Connelly and how it may affect you. Read More ›

Categories: Alerts and Updates, Did you Know?, Insurance, News, Tax, U.S. Supreme Court

Strategies and Resources for Year End Tax Planning

Business CoupleIn a year that has forced many to be reactionary, tax planning offers an opportunity for business owners to be proactive about the health of their business as the end of 2020 draws near.

Attorney Michael Zahrt provides tax planning strategies for year end along with updates to the CARES Act and PPP Loans in the following short video:

The CARES Act created a number of new tax benefits that are available for one year only, and these benefits have largely been lost in the sea of various stimulus programs (and compliance with those programs).

For a more in depth look at tips for year end tax planning, visit the following article which summarizes a few tax opportunities available to your business before the end of 2020:

Categories: Alerts and Updates, Financing, Tax

IRS Finalizes 199A Safe Harbor for Rental Property

House on PaperThe IRS recently issued Revenue Procedure 2019-38, which finalizes the safe harbor for rental property under Code Section 199A that was originally provided in IRS Notice 2019-07. The safe harbor treats a rental real estate enterprise as being eligible for the qualified business income deduction under Section 199A, even if it does not meet the definition of a “trade or business” as provided in Treas. Reg. 1.199-1(b)(14).  Read More ›

Categories: Property Tax, Tax

S Elections for ESOP Companies

Many mature, Employee Stock Ownership Plan (ESOP)-owned companies consider making an S-election, and for good reason.  An S Corporation owned 100% by an ESOP generally pays no federal income taxes.  An S Election instantly boosts cash flow, which the company can use to fund growth opportunities or fund its annual ESOP repurchase obligations.  Read More ›

Categories: Tax

Year-End Tax Planning Considerations

Christmas music is back on the radio. If you’re a pointy-headed tax lawyer like me, that’s your reminder to start thinking about year-end tax planning considerations. Even if you’re not, you will want to start planning earlier than in years past to address all the changes brought by tax reform. We will hit the highlights here. Read More ›

Categories: Collections, Income Tax, Tax

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