Prevent excise taxes from building on private foundations

Article Abstract:

Private foundations have certain tax advantages but are also vulnerable to substantial excise taxes if not properly managed. Compared to public charities, these foundations provide more control over the timing and distribution of donations. Individuals and companies can increase their tax deductions without harming distributions by raising their contributions to private foundations during high tax years and lowering them in low tax years. However, there are certain tax issues that should be understood to avoid heavy tax burdens. For one, these foundations can be taxed for unrelated business income for activities not related to their exempt function. They are also exposed to excise taxes imposed on net investment income, self-dealing, failure to distribute income, excess business holdings, investments undermining charitable purpose, taxable expenditures, and political expenditures for certain organizations.

Public Finance Activities, Excise Taxes, Excise tax

---

Private foundations breed estate planning complexities

Article Abstract:

Charitable bequests that benefit both private foundations and the decedent's family members trigger complicated tax rules and federal regulations which the executors, the beneficiaries or the foundations' managers may know little about. Private foundation tax issues arise when a beneficiary exempt organization does not qualify for any other non-private foundation categories, in accordance with Sec 509(a). Under Chapter 24 of the Internal Revenue Code, private foundations are taxed on their investment income, self-dealing transactions, failure to distribute income, excess business holdings and jeopardizing investments. It is therefore imperative for executors to familiarize themselves with private foundation tax issues and learn how to deal with them to be able to promote the interest of the estate and its beneficiaries.

Planning, Estate planning, Estate tax, Estate taxes

---

Choices and challenges in structuring the sale of a corporation

Article Abstract:

Careful planning is needed when considering the sale of an entrepreneurial business. There are several ways to structure this type of sale, each with its own set of tax considerations. Guidelines are given to assist tax advisors in planning out sales that are structured as direct purchases of stock or assets and as tax-deferred reorganizations. Tax issues concerning the purchase price negotiated by buyers and sellers are also discussed.

Laws, regulations and rules, Mergers, acquisitions and divestments, Acquisitions and mergers, Tax consultants, Practice, Business enterprises, Corporate reorganizations, United States. Internal Revenue Service

Similar abstracts:

• Abstracts: Growing pains. Consultant's challenge: perfecting the transition to Word
• Abstracts: Ethics, taxes, contracts and ethical dilemmas. Reducing the tax burden of transfers to charities. Choices and consequences
• Abstracts: The hazards of making public schooling a private business. Foreword: a cave drawing for the ages. The end of the market: a psychoanalysis of law and economics
• Abstracts: Interpersonal violence and social order in prisons. Gang violence in the postindustrial era
• Abstracts: The fishing gets easier; police gain more latitude in traffic stops, and other powers could be on way. Red and blue light specials; police may not shop for contraband with every traffic citation

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.