You may be worried that selling your house could end up costing you a huge tax payment at the end of the year. However, Congress has provided an exclusion to your income for the sale of a principal residence, subject to certain limitations of course. This article has been prepared by a tax attorney at […]
As discussed previously in other articles, reorganizations can provide a way to restructure business entities or acquire others without experiencing high tax costs. In other words, reorganizations provide ways to accomplish business goals through tax free restructuring. One common method used is a forward triangular merger, or as some people refer to it, an indirect […]
Taking on debt with nonrecourse liability has several advantages. In general, when acquiring property subject to debt, the acquiring party stands to benefit more from nonrecourse debt rather than recourse. With that in mind, you may be asking yourself what exactly the difference is between the two. This article has been prepared by a Denver […]
Reorganizations provide ways for corporate entities to restructure without triggering substantial tax consequences. It is important to remember with any reorganization that the strategy is rooted in tax deferral rather than tax elimination. The consideration used by the acquiring corporation, or subsidiary of an acquiring corporation, can also have a significant impact on whether or […]
FIRPTA, which stands for the Foreign Invest Real Property Tax Act, authorizes the United States government to tax foreign persons on the disposition of real property. The article below has been prepared by a Denver tax attorney to provide information related to FIRPTA. What is FIRPTA? If you are considered a foreign person for tax […]
As a general rule, the sale of assets or stock usually results in a taxable transaction to corporations. However, reorganizations create ways for entities to limit or reduce tax liabilities simply by restructuring the overall transaction. Tax free reorganizations should not be confused with eliminating tax entirely. Rather, tax free reorganizations prevent an immediate tax […]
Selling a corporation can have significant tax consequences for both the buyer and seller. However, it is not impossible to satisfy both parties to the transaction with a §338(h)(10) election. Generally, sellers of corporate entities prefer to engage in a stock sale rather than an asset sale while buyers prefer to engage in an asset […]
If you are operating an LLC and no longer wish to engage in such business, you cannot simply walk away or stop operations to limit your liability. Rather, you must properly dissolve your LLC to ensure that you will not be held personally liable for claims down the road. This process of terminating the LLC […]
Section 338 of the tax code can help resolve some of the issues created in stock sales in a way that benefits both buyers and sellers. Section 338 of the Internal Revenue Code provides a way to treat stock purchases as asset acquisitions for tax purposes only. In other words, under Internal Revenue Code §338(h)(10), […]
Are you considering establishing a corporation? Perhaps you have thought about putting in property as consideration for your interest while another member would like to contribute cash. You may even find yourself in a situation where a third person would like to contribute his services in exchange for an interest in the corporation. Each of […]