First, business losses are subject to several limitations. In response to the 2020 pandemic, businesses or their owners may carry 2018, 2019, and 2020 losses back five years and get tax refunds. We will go through a “big picture” review of the net operating loss (NOL), basis, at-risk, and passive loss limitations and how they affect income and self-employment tax. The review will include whether taxpayers benefit from deducting losses currently or suspending them until they have higher earnings. We will also briefly discuss other doctrines under which taxpayers might get refunds relating to income reported in prior years that, on hindsight, should not have been taxed.
Next, much has been made of trying to structure family offices to try to deduct investment management fees, which generally have been disallowed under 2017 tax reform and really hadn’t been very beneficial before that in light of the 2% floor on miscellaneous itemized deduction and their total disallowance for alternative minimum tax purposes.
Finally, a sale to a spousal irrevocable grantor trust is an alternative to a sale to an irrevocable trust deemed owned by the seller, whether the seller is the grantor or the primary beneficiary. We will discuss the sale to a spousal irrevocable grantor trust and compare it to the other two strategies.
Attendees will learn:
This live presentation of this webinar was approved for 1.8 hours general CLE credit in Missouri and 1.5 hours of general CLE credit in California and Illinois. CLE credit in Texas is pending. CLE credit is no longer available for this recording.
*Please note that this is a 90-minute webinar
For technical materials supporting the slides, please see Steve's newsletter.
Steve's current materials, Structuring Ownership of Privately-Owned Businesses: Tax and Estate Planning Implications, are available by emailing firstname.lastname@example.org.
April 28, 2020
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