The IRS recently issued guidance that allows certain estates to make a late portability election if they did not make a timely election. (Rev. Proc. 2017-34). For the purposes of Federal estate (and gift) tax purposes, a portability election allows a decedent’s unused exclusion amount (Deceased Spousal Unused Exclusion (DSUE) amount) to be available for the surviving spouse’s subsequent transfers at death or during lifetime on gifts.
The portability election applies to the estates of decedent’s dying after December 31, 2010, if such decedent is survived by a spouse. Under §2010(c)(5)(A), a portability election is only effective if made on …read more
Read more here:: Tax
Aronson has noticed that the current negotiation trend for large public companies and/or private equity strategic buyers, those who generally make-up the majority of the buyer pool for government contractors seeking exiting, is to not compensate the selling party for the incremental tax to be incurred upon transacting an asset sale form transaction versus straight stock sale.
The buyer party representatives controlling the negotiation will generally assert that the incremental tax burden to be incurred by the selling party for agreeing to an asset sale tax reporting treatment has already been considered in arriving at the selling price offering. Accordingly, it …read more
Read more here:: Tax
It is not uncommon for the valuation of a privately-held business to be one of the central issues in a litigation matter, such as a shareholder dispute or a family law matter. When this is the case, the attorneys representing the parties to the dispute will need to be on the lookout for litigation landmines.
As previously covered in Part 1 of this series, we were assisting in a family law matter in Virginia and were provided a prior valuation report of a business to review. Aronson expressed our concerns with the purpose of the valuation (gift tax) and the …read more
Read more here:: Beyond The Numbers
The 2016 Giving USA report, which is researched and written by the Lilly Family School of Philanthropy at the University of Indiana was recently issued; view the report here. Typically, the report is the most comprehensive data on charitable giving released each year. Despite being an election year, Americans continued to be generous giving a record $390 billion in 2016, an increase of 2.7% over 2015.
Similar to prior year’s 95% of giving ultimately originates from individual donations, which breaks down to 72% from individuals, 15% from foundations, and 8% from bequests; and, 5% from corporations. The sectors that benefitted …read more
Read more here:: Nonprofit
This article is co-authored by Natasha Barnes.
Summer has finally arrived and another busy season is done! While conducting IT risk assessments for financial statement audits, there were several recurring themes included in our findings. Our clients consisted of private organizations in construction & real estate, technology, government contracting, and professional services firms. We hope that your organization will find some of these findings useful in addressing risks and enhancing your IT environment. Regardless of whether you’re required to undergo a financial statement audit or not, these are standard elements that may help you to mature an IT program.
Develop an IT …read more
Read more here:: Technology