Overview of Loss Limitations; Family Office Partnership; Sale to Spousal Grantor Trust (COVID -19 Updated)

Course Details

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Course Description

First, business losses are subject to several limitations. In response to the 2020 COVID-19 pandemic, businesses or their owners may carry 2018, 2019, and 2020 losses back five years and get tax refunds.  We will go through a “big picture” review of the

  • Net Operating Losses (NOL),
  • Basis, at-risk, and passive
  • Loss limitations
  • How they affect income and self-employment tax.

The review will include whether taxpayers benefit from deducting losses currently or suspending them until they have higher earnings. We will also briefly discuss other doctrines under which taxpayers might get refunds relating to income reported in prior years that, in hindsight, should not have been taxed.

Further, we throw light on much-talked topic on how to structure family offices to try to deduct investment management fees, which generally have been disallowed under 2017 tax reform and really hadn’t been very beneficial before that in light of the 2% floor on miscellaneous itemized deduction and their total dis-allowance for alternative minimum tax purposes.

Finally, a sale to a spousal irrevocable grantor trust is an alternative to a sale to an irrevocable trust deemed owned by the seller, whether the seller is the grantor or the primary beneficiary. We will discuss the sale to a spousal irrevocable grantor trust and compare it to the other two strategies. 

Learning objectives

  • To recognize how the net operating loss (NOL), basis, at-risk, and passive loss limitations work and relate to each other.
  • To recognize how these limitations interact with self-employment tax, in light of a 2020 Chief Counsel Advice.
  • To recognize how family office that is taxed as a pass-through entity has much more difficulty deducting various expenses than an office taxed as a C corporation (including an unreported 2018 Tax Court order on the former), together with cautions regarding how a C corporation is compensated.
  • To identify how proposed income tax regulations governing service partners complicate the design of such a profits interest from a practical cash flow viewpoint as well as a tax viewpoint, when allocating profits from an investment partnership to the family office.
  • To identify transfer tax and income tax consequences of a sale to a spousal irrevocable grantor trust.

About Presenter

Steve Gorin, CPA

Advisor, Thompson Coburn LLP

sgorin@thompsoncoburn.com

Steve has drafted trusts and a full range of estate planning documents for clients to help grow, preserve, and transmit their family wealth. He has also drafted organizational documents for limited liability companies, corporations, and partnerships to implement their owners' wishes regarding current and future control and transmission, including bringing in new owners and facilitating exit strategies. 

Steve enjoys helping clients structure their affairs to achieve their achieve their personal, business, and financial goals while trying to reduce the drag that taxes impose on them. His firm provides full service to businesses; however, he also act as counsel on specialized matters while cooperating and facilitating the continued involvement of an existing legal, accounting, and financial services team. Steve maintains his CPA license but prefer to refer income tax returns to practicing CPAs.

Steve Gorin is former president and an ongoing contributor to strategic initiatives of Covenant Place, a senior affordable housing community with a groundbreaking model for integrated residents with the surrounding community and facilitating holistic services to enrich their lives. 

To know more about Steve Gorin, kindly click on the link below:

http://thompsoncoburn.com/people/steve-gorin



For almost 90 years, Thompson Coburn LLP has provided the quality legal services and counsel our clients demand to achieve their most critical business goals. With more than 380 lawyers and 40 practice areas, we serve clients throughout the United States and beyond. Whether helping with a real estate or employment issue, navigating a complex acquisition or defending a product or service in litigation, we have the knowledge and resources to meet any legal need.

Here's a link to the free resources that Thompson Coburn has to offer:

https://www.thompsoncoburn.com/insights/blogs/business-succession-solutions/about

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For more information regarding refund, complaint and program cancellation policies, please contact our offices at 646-688-5128

In case any of the course or live webinars gets cancelled we would be refunding you the entire amount (if paid).

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upcoming Live CPE Webinars

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Tuesday, October 20, 2020 | 09:00 AM EDT View Details/Register
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ACCOUNTANTS & CPA FIRMS - 4 STEPS TO GAIN, RETAIN & EXPAND HIGH VALUE CLIENTS
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1031 EXCHANGES FROM TAX SAVINGS TO WEALTH CREATION: ACCOUNTANTS, CFO, CONTROLLERS, CPAS, & TAX PROS
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Tuesday, October 20, 2020 | 12:30 PM EDT View Details/Register
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Tuesday, October 20, 2020 | 01:00 PM EDT View Details/Register
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Tuesday, October 20, 2020 | 01:30 PM EDT View Details/Register
  • Cost FREE
  • CPE Credits 2
  • CE Credits 2
  • IRS Course ID GEHNZ-U-00152-20-O
  • CTEC Course ID 6273-CE-0163
  • Subject Area Taxes
  • Course Level Basic
  • Instructional Method group internet based
  • Prerequisites None
  • Advanced Preparation None
  • Who should attend? Enrolled Agent Tax Attorney Tax Practitioners Accountant QB Pro Advisor CPA - Small Firm CPA - Mid Size Firm Accounting Firm Tax Pros CPA (Industry) Tax Firm Young CPA CPA in Business Entrepreneurial CPA Tax Accountant (Industry) Tax Director (Industry) Finance Director Senior Accountant Accounts Director Tax Managers Accounting Managers Risk Managers Tax Preparer Staff of Accounting Firm
  • Handout Material Download

upcoming Live CPE Webinars

QuickBooks: Tricky & Complex Situations for Advance Learners
Tuesday, October 20, 2020 | 09:00 AM EDT View Details/Register
Qualified Business Income (QBI) Deduction (IRC §199A) Detailed Study, Analysis,Calculations,Case Studies, Ins & Outs (Latest)
Tuesday, October 20, 2020 | 10:00 AM EDT View Details/Register
The Theory of Constraints and Lean Accounting
Tuesday, October 20, 2020 | 10:00 AM EDT View Details/Register
Individual International Tax Issues - Comprehensive Coverage
Tuesday, October 20, 2020 | 10:00 AM EDT View Details/Register
The Efficacy and Application of 30 Common Trusts
Tuesday, October 20, 2020 | 10:30 AM EDT View Details/Register
Executive Overview of Leases (Topic 842): Exploring Both the Accounting & Tax Implications
Tuesday, October 20, 2020 | 10:30 AM EDT View Details/Register
BEST TAX RETURN WORKSHOP - PARTNERSHIPS & LLCS (FORM 1065)
Tuesday, October 20, 2020 | 08:00 AM PDT View Details/Register
Five steps to an extraordinarily successful accounting firm
Tuesday, October 20, 2020 | 11:00 AM EDT View Details/Register
Practical Guide To Fraud 2020: Including Cash, Inventory & General Frauds
Tuesday, October 20, 2020 | 08:00 AM PDT View Details/Register
Estate Planning Fundamentals for IRAs 2020
Tuesday, October 20, 2020 | 08:00 AM PDT View Details/Register
ACCOUNTANTS & CPA FIRMS - 4 STEPS TO GAIN, RETAIN & EXPAND HIGH VALUE CLIENTS
Tuesday, October 20, 2020 | 12:00 PM EDT View Details/Register
1031 EXCHANGES FROM TAX SAVINGS TO WEALTH CREATION: ACCOUNTANTS, CFO, CONTROLLERS, CPAS, & TAX PROS
Tuesday, October 20, 2020 | 12:00 PM EDT View Details/Register
Dealing with IRS Collections Division (Part I)
Tuesday, October 20, 2020 | 12:30 PM EDT View Details/Register
Excel Tips & Tricks: For every Accountant, CPA, Bookkeeper, Tax Professional, Auditor & Controller
Tuesday, October 20, 2020 | 01:00 PM EDT View Details/Register
ETHICS FOR TAX PROFESSIONALS (LATEST 2020)
Tuesday, October 20, 2020 | 01:30 PM EDT View Details/Register