The Internal Revenue Service and Treasury Department have targeted family wealth transfers from one generation to the next by proposing regulations to eliminate valuation discounts for operating businesses and family limited partnerships from estate, gift and generation-skipping transfer tax assessments. The proposed regulations would mean increased estate taxes on the death of owners of family businesses, possibly causing the liquidation of the business or the sale of large interests to outsiders. 

In order for inter-family asset transfers to be "grandfathered", they must be completed before December 31, 2016. It is imperative that you  contact our office immediately to schedule an appointment to discuss strategies to help you preserve family wealth for your family.

Additional information can be found at the following links:
Bill Root: Vanishing Discounts

Bill Root has been helping families develop business succession plans 
for over 25 years.  Read Bill's full bio here.

Do you have a question for our team? 
If you have a general estate, business or special needs planning question  for one of our attorneys and would like to have the answer considered for inclusion in our next newsletter, please submit your question  here .

TEFRA audit rules have been repealed and procedures for partnership audits have changed. Partnerships are now responsible for audit adjustments, the role of "tax matters partner" has been replaced, and liability is now imposed on the partnership or LLC in the year of the adjustment, rather than the tax year to which the adjustment relates.

We advise members of LLCs taxed as partnerships and partners in partnerships to meet with their advisors to discuss these changes and amend their agreements to comply with the new audit procedures and the elections that are available to them.

Click here for more information about TEFRA and the required amendments to LLC operating agreements.
Resch and Root, LLC | 614.760.1801 |
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