Down to the Wire?

“I have wondered at times what the Ten Commandments would have looked like if Moses had run them through the U.S. Congress.” – Pres. Ronald Regan

That line probably describes the exasperation with which many Americans are observing the behavior of their representatives in Congress these last few weeks.

At this point, a number of folks are wondering whether the eviscerated version of the legislation proposed by the Administration in April of this year, and passed by the House last month[i], will be enacted into law before the end of this year, early next year, or not at all. Continue Reading The Tax-Deferred Rollover – Some Considerations

Haste Makes Waste?

How many of you are suffering from Build Back Better Fatigue? Seriously, it’s a thing.[i]

Sure, the House passed its version of the President’s tax and spending bill on November 19[ii], and the Senate took up the bill after its Thanksgiving recess, with Senate Majority Leader Schumer setting a Christmas deadline for its passage. During this past week, however, certain key Democrats have expressed doubts over Senator Schumer’s timeline. On December 1, the Chair of the House Ways and Means Committee, Richard Neal, said he was skeptical about Congress being able to meet that deadline. The very next day, Senator Manchin intimated that the bill may not be approved this year.[iii] Continue Reading Selling Your S Corporation’s Business? What If It’s Not an S Corporation?

Not Selling Your Business This Year?

Beginning shortly before the House Ways and Means Committee released its version of the President’s Build Back Better plan, several posts on this blog have explored the uptick in M&A activity as the owners of many closely held businesses have sought to sell them before the effective dates[i] of any new or increased federal income taxes.

In most cases, the individuals disposing of these businesses were already considering – if not yet committed to the timing of – their exit. Their concern over increased taxes,[ii] however, has accelerated the decision to sell for many; increased taxes translate into fewer net proceeds and a lower return on their years of investment.[iii] Continue Reading Not Selling Despite Tax Increases? Review the Buy-Sell Agreement Among Owners

Tax the Rich?

The President’s plan for a tax regime that would ensure the rich pay their “fair share” of the cost of implementing his programs has come one step closer to being realized . . . maybe . . . well, sort of . . . at least in part. You know, half a loaf (unless it’s whole wheat) is better than none. Voting strictly along party lines,[i] the House of Representatives on Friday[ii] morning passed an approximately $1.75 trillion version of Mr. Biden’s $3.5 trillion Build Back Better plan by a vote of 220 to 213.[iii] Continue Reading One Step Closer to “Building Back” – Where Do Federal Transfer Taxes Stand?

Same old in D.C.

On Monday, November 15, the President will sign into law the approximately $1 trillion Infrastructure Investment and Jobs Act that was finally passed by Congress when the House approved the Senate’s version of the legislation on November 5. According to various reports, an estimated $6 billion of this monumental sum will find its way into Senator Manchin’s West Virginia:

“[Manchin] said $3 billion will go to federal highway programs in the state; nearly $200 million will go to complete Corridor H of the Appalachian Development Highway System, which is known within the state as the Robert C. Byrd Highway System; $190 million for statewide transit; $43 million for state airports and $700 million to rehabilitate abandon [sic] mine lands.”[i]

Continue Reading Gift Transfers: Not on the Congressional Agenda, But Still in the Crosshairs of the IRS

Having Fun?

Hope you had a decent weekend. Perhaps you did something interesting, maybe even fun, like some end-of-season apple picking? Or maybe you had a cider donut with some hot coffee at a farm stand you stumbled upon on your way back from attending a football game at a small college? That said, few experiences are better than a midafternoon walk in a quiet park under a blue sky, with the sun on your back like a blanket wrapped over your shoulders to fend off the autumn chill. Continue Reading Selling to Private Equity? Maybe You Should “F Reorg” First

It Seemed Like a Good Idea

In July of this year, one of my partners, who chairs the board of a local grantmaking public charity,[i] asked if I would present at a CLE program to be sponsored by the charity on October 28 (last Thursday). When I asked if she had a particular topic in mind, she suggested I update the group on the tax features of the President’s $3.5 trillion Build Back Better plan. Continue Reading The 2022 Federal Budget, Including Tax Changes – Are We There Yet?

If Only

Have you ever wondered what trajectory your career or business would have taken had you done something differently? Have you ever wished you could turn back the clock to correct a mistake, to complete an unfinished task, to approach an old project from another perspective?

Each of us has experienced such “what if?” moments in our professional or business lives.[i] Continue Reading The Tax “Do-Over” – Is There Such a Thing?

Tax the Rich?

A few days ago, an opinion piece that appeared in the Wall Street Journal[i] began as follows:

“President Biden’s effort to pass the largest tax increase in U.S. history is based on the verifiably false claim that Americans with high incomes don’t pay their ‘fair share.’ In no other country do the rich bear a greater share of the income-tax burden than they do in the U.S.”

The author briefly described data from the OECD, the Joint Committee on Taxation, and the Congressional Budget Office which, the author states, support the above claim.[ii] Continue Reading Maybe Tax the Rich, but Not The Conversion of S corps into Partnerships – What Gives?

What A Week

It was quite a week, wasn’t it?

Manchin

Senator Manchin continued to attract a lot of attention.

To the dismay of his fellow Democrats, the West Virginian – who also chairs the Senate Energy and Natural Resources Committee – challenged the wisdom of a “carbon tax” (which may harm his state’s coal industry), and unequivocally stated that natural gas (a fossil fuel) must be part of President Biden’s clean energy initiative.[i]

Continue Reading Gifts, Sales and Effective Dates: The Race Against the Clock the Taxpayer Cannot See