23August
2018
Pair a Trust and an Installment Sale to Pass on Your Business

For many people, a family business is a significant source of wealth, so passing it on to the next generation in a tax-efficient manner is an important estate planning goal. One of the simplest and most effective strategies available is an installment sale to an intentionally defective grantor trust (IDGT). So long as the business generates sufficient cash flow to make the installment payments, a sale to an IDGT The Pros and Cons Of Selling to an IDGT An installment sale of a business to an intentionally defective grantor trust (IDGT) offers many benefits, including the following: Selling to a trust…

23August
2018
Squeeze More Out of a Company SEP

If you want a retirement plan for your small company or self-employed business — but you don’t want to be buried in paperwork — consider a simplified employee pension plan or SEP. Among the appealing advantages: SEPs are set up by simply filling out a brief form. Annual reports aren’t required to be filed with the IRS, although you must provide a copy of the SEP form to each covered employee. (Most retirement plans require detailed reports to be filed with the IRS and the Department of Labor.) Contributions can go from zero to the maximum each year, so if…

23August
2018
When a Spouse Inherits an IRA

Spouses have the most flexibility when inheriting individual retirement accounts (IRAs). The basic rules are: The spouse may treat the inherited IRA as his/her own (or roll it over into his or her own IRA) or remain the beneficiary on the account. The spouse may only treat the IRA as his or her own if he or she is the sole beneficiary. If there are multiple beneficiaries, the account can be separated so the spouse’s share is in its own account. When the spouse elects to treat the IRA as his or her own, the IRA is simply retitled as…

15August
2018
Pull the Plug on Employee Theft

Not all crooks roam the streets at night. Some might be roaming your company hallways, stealing cash, forging or altering checks, and pilfering your inventory and property.                   Even worse, they may be stealing intellectual property such as confidential documents or trade secrets. What can you do to pull the plug on employee theft? Here are 18 crime busters: 1. Talk openly with your employees about theft and dishonesty. Set an example for ethical behavior. 2. Be suspicious of any employee with a sudden financial change. (Has someone started buying expensive clothes,…

15August
2018
Limit the Impact of E-Mail in Court

You just finished typing a draft of an aggressive e-mail message explaining why you think your company’s strategic plan can — and will — destroy the competition. Later, you think the memo was too bold, particularly the attachment that showed how much market share you could steal from the competitors in your hometown. You decide to delete the e-mail. It’s gone, right? History will never see it. Wrong. Plaintiffs and prosecutors alike are finding that e-mail can provide fertile ground for discovery in litigation. It is playing a greatly increased role in court for several reasons: E-mail is almost impossible…

15August
2018
Make a Tax-Smart Redemption of C Corp Stock

Do you have too much of your net worth tied up in your family C corporation? Consider bailing out some or all of that hard-earned wealth with a stock redemption. Here’s an explanation of why the federal income tax results for stock redemptions are far better today than in the past when much higher tax rates applied to dividend income. A redemption occurs when you sell back some or all of your shares to the corporation. In other words, you get cash from the family corporation in exchange for turning in some or all of your stock. The general rule…