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Law Offices of Givner & Kaye Newsletter | December Issue
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Greetings!
In December people think seriously about what planning they can do to lower the tax that they will owe on their business returns due March 15, 2015, and their personal returns due April 15, 2015. If you are in that situation, please call us now. There is a small window of time to get something done before the end of the year.
In December, 2013, we held a Scotch Tasting Event which was well attended and enjoyed by all. We plan to follow that up with a Bourbon Tasting event in early January, probably January 23 from 2:30 to 4pm. If you are interested, please let us know now and whether or not that date works for you. We already have the top 10 Bourbons of 2014 selected.
In closing, may you all have a safe and happy Hanukkah, Christmas, Boxing Day (December 26), Kwanzaa, New Year's Eve, and New Year!
Best regards,
Bruce Givner
Owen Kaye
Kathleen Givner
Neda Barkhordar
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Featured Article: Planning to Sell Your Business in the Next Few Years?
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Are you planning on selling your business in several years? Wouldn't it be nice to not pay the state and federal taxes on the sale?
Well, the time to plan is now, more than 2 years before the sale. You can set up an irrevocable trust for the benefit of your children now. You can sell the business to the trust for your children for a long-term, interest-only, installment note. The children's trust will then - more than two years later - sell the business for an amount greater than the note. And the children's trust will be able to use, as its basis for purposes of that sale, the amount of the note that it owes you, even though it has never paid any principle on the note. As a result, the children's trust will have the cash from the outside buyer.
You cannot be in technical "control" of the children's trust because for income tax purposes control can equal ownership. However, you can have an awful lot of influence over that trust that will not amount to technical tax ownership. For example, more than six years (the statute of limitations for federal tax purposes - 8 years for California tax purposes) after the children's trust sells the property it might contribute the funds to a single member LLC and make you the manager. That is just one of the ways we can make this comfortable for you.
Obviously this is an attempt to explain simply what is a complex structure. This can also be used for the sale of a personal residence. However, it is well worth your time exploring.
To discuss the possibility of this structure for your business or personal residence, please contact us today.
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YouTube Videos
 | | Buy - Sell Agreements |
We post new videos on YouTube each week filled with advice and tips. For more, click here.
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| Attorney Spotlight: Upcoming Engagements |
Bruce Givner will be addressing the Beverly Hills Bar Association on April 2, 2015, on "Entity Selection."
Neda Barkhordar, Esq. has just been invited to speak to the Tax Section of the L.A. Chapter of the California CPA Society on the IRS Offshore Voluntary Disclosure Initiative.
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Tax Tip of the Month + Bonus Tip
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1. Even a real estate investor or real estate broker can benefit from a captive insurance company. We have helped our clients set up captive insurance companies with premiums of as little as $100,000 on a cost-effective basis.
2. If your defined benefit pension plan is "fully funded," consider whether your spouse or adult child can be reasonably compensated by the business. If so, then you may have another way to contribute a great deal of additional deductible dollars to your pension plan.
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Bruce Givner & Owen Kaye |
Upcoming Thursday Insights Series Seminar:
Everything You Wanted To Know About Public Charities and Private Foundations But Were Afraid To Ask with Bruce Givner, Esq.
December 18
2:30pm-4pm
At the end of the year many people are interested in charitable structures. However, they may not have already determined which charity they wish
to benefit. Do they want their "own" char-
ity? What does it mean to have your "own" charity? We'll discuss all the types of both private foundations and public charities, the advantages and disadvantages, the costs to set them up and operate them, and the procedures to do so.
Join us in the office or online via webinar, where you can watch the folks in the room listen to and question Bruce.
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 For almost four decades, our experienced Los Angeles estate planning, asset protection and expert tax attorneys have met each client's unique planning needs by collaborating with our longtime partners - attorneys, accountants, business managers, financial planners, stockbrokers and insurance professionals. Contact Givner & Kaye today! |
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