Preserving Income Tax Benefits from Estate Tax Audits; S Corporation Sales; Partnership Redemptions

Drawn from Steve Gorin’s 4th quarter 2022 newsletter, this course discusses preserving income tax benefits from estate tax audits and selected issues relating to S corporation sales and partnership redemptions. 

Preserving income tax benefits from estate tax audits discusses coordinating estate tax and income tax statute of limitations and includes a recent case in which the taxpayer failed to take the steps necessary to preserve rights to income tax benefits and therefore lost them. 

S corporation sale topics start with a brief of overview of recent IRS relief from various mistakes to avoid needing to get a private letter ruling before a sale. Next we review briefly tools to avoid gain on the sale of a business, before addressing coordinating this with the buyer’s desire to get a basis step-up in the business’ assets. We briefly compare state income issues on the sale of business interests with the sale of business assets, including recent cases. Next we review the deferred sales trust, including relatively recent Chief Counsel Advice regarding that tool. 

Finally, we discuss partnership redemptions, reviewing the flexibility afforded them and comparing them with installment sales. We conclude with a surprising case where exiting partnerships had to recognize ordinary income when they exited wrongfully and took clients with them. 

CLE
California: 1.50 general  
Illinois:  1.50 general 
Missouri:  1.80 general credit 
New York: 1.50 professional practice (experienced & transitional)  
Texas:  1.50 general 

Presenter:
Steve Gorin

For technical materials supporting the slides, please see Steve's newsletter.