Because the estate tax calculation is tied into the lifetime gifts made, there is uncertainty as to how the estate taxes will be calculated if the Transfer Tax Exemption is reduced in 2013. Even if there is a "claw back" (which would be the worst-case scenario), a donor would be in the same position as not having made the gift (but with the benefit of having the income and appreciation on the gifted property excluded from his or her taxable estate). … [Read more...] about The Clock is Ticking: Should You Act Before December 31, 2012?
Income vs growth stocks
Identify factors that can undermine value, and work to clean them up. Especially if valuation is based on an earnings multiple, eliminating or reducing a several hundred thousand dollar expense can result in a multi-million dollar increase in purchase price. Similarly, buyers may seek “dollar for dollar” indemnification (i.e., without any deductibles) for certain matters, such as pending or likely litigation. Sellers often try to resolve these issues before a sale to reduce the likelihood of an indemnity claim post-closing. To the extent such issues cannot be resolved, founders should be forthright about them with the prospective buyer. … [Read more...] about Founder’s Decision to Sell: Considerations for Obtaining Sustained Value for Life’s Work
CFTCChilton Calls for Clear Standard for Cross-Border “Principal Place of Business”In a speech on June 18th, CFTC Commissioner Bart Chilton addressed issues related to the term “principal place of business” associated with cross-border derivatives rules. In a speech earlier in the month, Chairman Gensler noted that, for cross-border trades, Dodd-Frank rules cover hedge funds and other collective investment vehicles that operate offshore but that are majority-owned by U.S. individuals or that are primarily based in this the U.S. Chilton said that the Commission needs to give a “clear interpretation” of what it means to have a “principal place of business” in the context of this rule, such as where a firm’s head office is and where executives and trading managers are located., saying a P.O. Box will not “cut it as a principal place of business.” In addition, Chilton reiterated his desire for cross-border rules to … [Read more...] about Financial Services Legislative and Regulatory Update – Week of June 24, 2013
Unlike contributions to traditional IRAs, contributions to Roth IRAs are never deductible.[xiv] Also, contributions to a Roth IRA are not subject to an age limit.[xv] In fact, contributions to a Roth IRA may be made at any age.[xvi] Further, while contributions to a Roth IRA is limited, as in traditional IRAs, for 2010, to $5,000 or $6,000 if the individual is 50 years old or older by the end of the year, the amount that an individual can contribute to a Roth IRA may be further limited depending on the individual’s income, filing status, and whether the individual has contributed to another IRA.[xvii] The maximum contribution limit (determined without regard to any reduction for traditional IRA contributions made) is phased out between certain levels of modified adjusted gross income (AGI).[xviii] For example, for the tax year 2010, individuals who have a modified AGI of $120,000 or more are prohibited from making an annual contribution to a Roth … [Read more...] about Dissecting the Roth IRA Conversion: Is Conversion Right for Everyone?