In August, the government issued proposed regulations under IRC §§ 199A (20% deduction for qualified business income from passthrough entities) and 643(f) (multiple trusts treated as one trust). These regulations inform strategic and tactical planning for passthrough entities and trusts, of course containing some favorable and very unfavorable rules.
We will review some basics and then get into the proposed regulations. You will learn:
- Wage and unadjusted basis immediately after acquisition (UBIA) limitations. See how basis step-up in different transfers affects UBIA and why tax-free formation of a business can (unfairly) reduce UBIA. Consider whether workarounds really help.
- Relevant passthrough entities (RPEs) and aggregation. The proposed regulations provide some relief but also do not allow favorable real estate aggregation from the passive loss rules.
- Specified Service Trade or Business limits. Say good-bye to "crack and pack."
- Proposed regulations' attack on trusts. The government listened to those who touted using multiple trusts to circumvent limitations of 2017 tax reform and seems to have decided that trusts are evil. Be aware of the government's traps and consider whether you can avoid them.
About the Speaker
Steve is a nationally recognized practitioner in the areas of estate planning and the structuring of privately held businesses. Lawyers, accountants and business owners regularly look to Steve for fresh, highly knowledgeable insights into the best possible tax and estate planning approaches to their transactions.
Steve crafts estate plans for individuals, keeping in mind their financial security and desire to save income and estate tax. In his work for businesses, Steve helps owners plan for the eventual sale (to co-owners, employees, or third parties)or transfer (to family members), and provides a legal framework for an orderly transition while strategically saving income, transfer, and FICA taxes.
Drawing on his background as an accountant - and his still-current CPA license and Chartered Global Management Accountant credential - Steve structures businesses to achieve business objectives and save income or estate tax. He has helped fledgling businesses organize, thriving businesses restructure to save hundreds of thousands of dollars of income tax when planning a transition to the next ownership group, and mature multi-million or billion-dollar businesses plan tax-saving transfers to the next generation.
Steve is a highly visible member of the ABA's Real Property, Trust & Estate Law Section and the American College of Trust & Estate Counsel, which regularly directs its members to Steve's quarterly newsletter. He has represented both groups in comments to the IRS, the U.S. Treasury, and tax lawmakers.
Click here to read Steve's full biography.