Month: May 2014

Family Limited Partnerships – Make It a Real Deal

The biggest challenge for estate planners is how to reduce estate and gift taxes but allow the client to retain control over his assets. Family limited partnerships (FLPs) provide a solution to this problem. When you place investments, a business, or real estate holdings in a FLP, you retain control of the assets while at… Read More

Capital Gain vs. Ordinary Income

When you do a “fix and flip,” will the profit be considered ordinary income or capital gain? The answer can be the difference between the 20% maximum capital gain rate and the 39.6% maximum ordinary income tax rate. (And don’t forget the lurking 3.8% net investment income tax.) The tax policy of having a lower… Read More

Estate Planning and Portability

The American Taxpayer Relief Act of 2012 (ATRA), which tried to keep us from going over the “fiscal cliff,” raised the federal estate tax exemption to $5.25 million and made permanent an estate tax concept called “portability.” How long the exemption will stay at $5.25 million (ignoring annual inflation adjustments) is anybody’s guess. “Portable” means… Read More