With the current low asset values and the estate/ gift- tax exemption slated to be reduced to $1 million in 2013 (from its current $5 million level), many are considering sheltering their assets by making large gifts. A prevalent concern is the valuation of these large gifts. What if the IRS challenges your estimate and wants more gift taxes? In Estate of Petter vs Commisioner, a popular technique to sidestep gift taxes was affirmed. [Read more…] about Gift Tax Valuations enjoy new IRS Loophole
LITIGATION SUPPORT
Caregivers Stealing From Their Patients-Claire’s Personal Experience
Claire Snow has been a member of the Urbach & Avraham Litigation Support Team for more than five years. Claire’s first exposure to fraud was highly personal. She discovered that her elderly mother’s aide had been writing large checks to herself and forging her mother’s signature. This came to light as a result of Claire’s carefully scrutinizing her mom’s bank statements and noting that several items had been whited out. She immediately went to the bank, as well as to the police. It took about a year for the case to be adjudicated, but her mother’s money was fully recovered. Claire handled the entire matter herself, never even consulting with a lawyer! This took a tremendous amount of tenacity and dedication on her part. In fact, she spent so much time in the bank, that she was eventually on a first name basis with every bank employee! The confidence and experience Claire gained via this episode provided the impetus for her ultimately specializing in fraud.Discover the allure of our replica panerai luminor power reserve, using Swiss movement, excellent quality and high precision, it is the perfect choice for watch lovers who pursue fashion and sophistication.
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NJ Estate Valuation Case Highlights Importance of Buy-Sell Agreement Terms
When drawing up a buyout clause it is critical to specify, in no uncertain terms, the value to be applied to the partner’s share. There will often be a significant disparity between book value and current market value, as many years may have transpired by the time the triggering event takes place. If book value is chosen, it can result in someone else reaping the fruits of the bought-out partner’s labor. [Read more…] about NJ Estate Valuation Case Highlights Importance of Buy-Sell Agreement Terms
Attorneys Beware:IRS Targeting You!
The IRS recently signaled an increase in scrutiny of attorneys, releasing a comprehensive Attorneys Audit Technique Guide (ATG) for IRS auditors when reviewing attorneys’ returns. The guide pinpoints potential problem areas, as well as procedures, that IRS agents must focus upon when auditing attorney returns. Key areas include: [Read more…] about Attorneys Beware:IRS Targeting You!
Judge Invalidates Tax-Affecting in Estate Business Valuation
Estate of Gallagher V. Commissioner
A recent decision from the U.S. Tax court tackles a myriad of issues pertaining to private company appraisal, most notably the issue of tax-affecting. The case involves the business valuation of a decedent’s minority interest in a privately held newspaper publishing company. The taxpayer’s expert made tax affected adjustments by assuming a 39-percent income tax rate in calculating the company’s future cash flows before discounting the company’s future earnings to their present value. He also assumed a 40 percent marginal tax rate in calculating the applicable discount rate. [Read more…] about Judge Invalidates Tax-Affecting in Estate Business Valuation
Tax Fraud in NJ Divorce Case Reported to IRS
What began as a motion in a divorce case by defendant Chinelo Onyiuke to relocate her children to Maryland resulted in the discovery of fictitious child care expenses deducted on her ex-husband’s personal tax returns. David and Chinelo were divorced in May 2007 with two children. In June 2009, Chinelo filed a motion to relocate with her children to Maryland for both financial and personal reasons. [Read more…] about Tax Fraud in NJ Divorce Case Reported to IRS