The IRS Alter Ego Doctrine and Piercing the Corporate Veil

I have previously written about the benefits of forming an LLC for golf cart and other asset/vehicle ownership as an asset protection strategy to insulate your accumulated personal wealth. A properly established LLC or corporation exists as a separate entity from its members or owners for both legal and tax purposes. The resulting asset protection Read more about The IRS Alter Ego Doctrine and Piercing the Corporate Veil[…]

Pet Trusts: Protecting Your Pet After Your Death

Humans are not the only Americans enjoying longer lifespans than a century ago. Thanks to progress in nutritional science and veterinary care, many of our four-legged and feathered friends are remaining strong, active, and alert well into and even beyond the traditional “golden years” of their species. As a result, it is more important than Read more about Pet Trusts: Protecting Your Pet After Your Death[…]

Taxation of Athletes and Entertainers Under the New Tax Law

In a recent post, I examined some of the potential impacts of the Tax Cuts and Jobs Act of 2017 (“the Act”) on professional sports teams and team owners, and now look at what professional athletes and entertainers (“the players”) have gained and lost under the Act. At first glance, the losses may seem to Read more about Taxation of Athletes and Entertainers Under the New Tax Law[…]

Donor-Advised Funds (DAFs) vs. Private Foundations: How the Wealthy Donate Money

Most people are familiar with the charitable activities of private foundations bearing the names of giants of U.S. business—the Rockefeller, MacArthur, and Bill and Melinda Gates Foundations, to name just a few. These foundations still play a vital role in charitable activities around the world, but the wealthy are increasingly directing their charitable contributions to Read more about Donor-Advised Funds (DAFs) vs. Private Foundations: How the Wealthy Donate Money[…]

Energy Efficient Commercial Building Section 179D Tax Deduction

As I observed in a recent article on the Section 199 deduction for broadcasters, the many issue-specific “campaigns” recently launched by the Large Business and International (LB&I) Division of the IRS vary in nature. Whereas some of the campaigns heavily emphasize stepped-up enforcement, others aim primarily to educate taxpayers and resolve honest confusion over filing Read more about Energy Efficient Commercial Building Section 179D Tax Deduction[…]

IRS Audits of MVPDs and TV Broadcasters That Claim a Section 199 Deduction

Much has been written about the numerous issue-specific enforcement “campaigns” announced in 2017 by the Large Business and International (LB&I) Division of the IRS. Most of the campaigns center on specific reporting and filing requirements that the IRS has determined many taxpayers are failing to meet. A few campaigns, however, focus more on sorting out Read more about IRS Audits of MVPDs and TV Broadcasters That Claim a Section 199 Deduction[…]

How Private Placement Life Insurance Helps Protect and Grow Your Wealth

It seems like every day there is a new “big idea” for shielding both wealth and income from the long reach of the IRS. Surprisingly, the latest hot take on tax reduction and wealth protection centers on an investment most people consider about as trendy as an over-60 men’s bowling league: life insurance. Background: Types Read more about How Private Placement Life Insurance Helps Protect and Grow Your Wealth[…]

LB&I’s Micro-Captive Insurance Campaign: Illegitimate Insurance Carries Huge Risk of IRS Scrutiny

In recent posts, including my December 2017 article on OVDP Withdrawals and Rejections, I have described several of the issue-specific “compliance campaigns” launched by the Large Business and International (LB&I) division of the IRS in 2017. One of those campaigns focuses on abuse of the rules governing the creation of captive insurance companies. What Are Read more about LB&I’s Micro-Captive Insurance Campaign: Illegitimate Insurance Carries Huge Risk of IRS Scrutiny[…]

How Conservation and Preservation Easements Offer Huge Tax Benefits

Conservation and preservation easements offer taxpayers some of the largest charitable contribution deductions to be had under the U.S. tax code, which is extraordinary when one considers that no property actually changes hands under such an agreement. Rather, the owner of the land, building, or art collection in question maintains his or her ownership but Read more about How Conservation and Preservation Easements Offer Huge Tax Benefits[…]