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What Considerations Should be Made in Drafting Buy-Sell Agreements?

Posted by: Lisa Castle  /  Tags: , , ,

By: Heather I-D Graham, CPA, CVA

Drafting Buy-Sell Agreements requires that special consideration be given to a number of special rules that affect valuations for estate and gift tax purposed.  For example, options to acquire property at less than FMV and restrictions on the right to sell property are generally disregarded in determining value.  An independent valuation, or the assistance of a valuator in deriving a formula approximating FMV at the date of the agreement helps insure the proper tax result of the Buy-Sell agreement.  Buy-Sell Agreements also have numerous other non-tax issues, all of which can be enhanced by a proper valuation formula.

The business valuation formula can be different or each business, depending on the industry, risks, and case circumstances.  If you need professional assistance, pelase give us a call.

Mileage Rate to $0.555

Posted by: Lisa Castle  /  Tags: ,

To reflect the recent increase in gas prices, the IRS raised the standard mileage rates for the last six months of the year. The rate will increase to 55.5 cents per mile for business miles driven from 7/1/11 through 12/31/11, a 4.5 cent per mile increase from the rate in effect for the first six months of 2011 [see Rev. Proc. 2010-51 (2010-51 IRB 883) ].

 The rate for computing deductible medical or moving expenses will also increase by 4.5 cents per mile to 23.5 cents per mile, up from 19 cents per mile for the first six months of 2011. The rate for providing services for a charity is set by statute, and remains at 14 cents per mile.

Notice of Estate & Gift Tax Law Changes

Posted by: robertfm

The estate and gift tax changes in the recently enacted 2010 Tax Relief Act. Before the new law, there was no estate tax for 2010, but some beneficiaries could have faced higher taxes because there were less favorable income tax basis rules. Also, under the prior law, estate and other transfer taxes were scheduled to rise substantially for post-2010 transfers.

If this affects you, please read the details of the changes in our recent letter and firm publication here:  “Tax Relief Act 2010 – Letter re:  Estate and Gift Tax Changes