We have covered timing and delivery issues in several articles, such as the recent Demuth and Hoensheid cases.[1] Similarly, the recent Tax Court case of Gage v. Comm’r dealt with the taxpayers that believed they paid a $875,000 settlement to the Department of Housing and Urban Development (“HUD”) in December of 2012.[2] Unfortunately for the…
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Clients often ask where they should form a new legal entity to obtain the best creditor protection. Blogs, marketing materials, and similar items often tout one or another jurisdiction as the best place to form legal entities. It certainly is the case that state laws differ. One of those areas is in “charging order” protections…
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A recent Chief Counsel Advice Memorandum (“CCA”) discusses certain tax consequences pertaining to a taxpayer owning cryptocurrency native to a blockchain that undergoes a protocol upgrade. CCA 202316008. In the hypothetical scenario discussed in the CCA, a hypothetical blockchain, very similar to Ethereum, underwent a change in the method in which it approved and processed…
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Charitable remainder annuity trusts, or CRATS, are excellent estate planning vehicles and provide a litany of benefits to those who implement them, but as Devin Mills discussed in his recent article on the 2023 IRS Dirty Dozen list, the IRS considers CRATS as one of the legitimate tax strategies that are often abused by taxpayers.[1]…
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Every year the IRS publishes its list of the top tax scams that taxpayers should be aware of, known as the Dirty Dozen. I discussed the IRS’s 2021 Dirty Dozen list in a prior web article,[1] and the IRS has recently released its 2023 Dirty Dozen list.[2] Several of these scams are designed to steal…
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It is fairly common to make charitable gifts of property prior to a sale transaction. Often, those gifts are of real property or closely-held business interests. This is for good reason. Structured properly, not only do donors generally receive a charitable income tax deduction equal to the fair market value of the donated property, they…
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In a recent Notice issuance, the IRS and Treasury put taxpayers on notice that they intend to issue guidance related to the treatment of certain nonfungible tokens (“NFTs”) as collectibles under IRC § 408(m). Notice 2023-27 does not itself pass any regulations but instead puts taxpayers on notice for future guidance and that the IRS…
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You and your friend wish to start new business based on a novel idea that you both are sure will succeed. You know there are no obstacles that can prevent this business from growing and thriving. You are sure this new business will bring you and your family the security and prosperity you have always…
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So, you mooned in the short term on a completely degenerate gamble and want to offset income with charitable giving. First off, good on you for wanting to do the right thing. Second, don’t mess up. It may seem really simple that if you send some cryptocurrency to a qualifying organization, you should be able…
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Have you ever heard someone referred to as a “trust fund baby?” Such term usually carries a negative connotation and references a younger person whose parents established a trust fund which provides for the child’s financial security for life. Such term also perpetuates an unfortunate misconception: that trusts are only available to, and utilized by,…
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