The Mississippi Legislature made some sweeping changes to Mississippi laws governing estates and trusts, as well as one significant change to real property law. With the passage of S.B. 2850 and S.B. 2851, Mississippi is set to get some much needed updates in these areas of law. Both bills were signed by the governor and…
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Those of us who handle acquisition transactions can take for granted that asset acquisitions avoid the buyer assuming unintended liabilities of the seller. As a general rule, acquisitions of an entity’s equity cause the buyer to take any liabilities of the business conducted by the entity. However, asset acquisitions generally allow the buyer to selectively…
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In a recent opinion, the Tax Court held that business expenses of a medical marijuana dispensary in California were not deductible for federal income tax purposes. Richmond Patients Group (“Richmond”) sought to deduct its business expenses including compensation to officers, wages, rent, taxes and licenses, and other business related expenses, but the Tax Court denied the…
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On March 13, 2020, under the Stafford Act, the President issued an emergency declaration as a part of the government’s attempts to mitigate the effects of the COVID-19 pandemic. Since that time, business owners have had a lot to handle including mandatory closures, remote working, issues under preexisting contracts (leases, loans, supply contracts, employment agreements,…
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On Friday, March 26, 2020, history was made. In one fell swoop, Congress dropped $2.2 trillion to keep the United States’ economy going during the COVID-19 epidemic with the passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). With such a lengthy bill, many are wondering what all is contained in the…
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Due to historically low rates combined with potentially depressed asset values due to the recent market decline, now may present an unparalleled opportunity to take advantage of wealth transfer techniques to shift significant wealth downstream with little to no use of gift tax exemption. As I write the article, the United States and the rest of…
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Introduction Earl and Margaret Blasingame filed bankruptcy seeking the discharge of over $7.7 million in debt. They claimed to have monthly income below $900 and total assets of less than $6,000. However, Earl and Margaret lived in a “28-acre gated compound” with a heated swimming pool and lighted tennis courts. The residence was adjoined by thousands…
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Conservation has been in the tax news yet again recently. Really, ever since Notice 2017-10, conservation easements, especially those of the syndicated variety, have been caught in the cross hairs of the IRS as well as the Department of Justice while also drawing the ire of a few of those in power in Congress. Most…
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In a recent Tax Court Memorandum opinion, the Court was not too pleased with the operations and the administrative proceedings of the IRS involving Notices of Deficiency issued to a taxpayer. The taxpayer represented himself and was subjected to a confusing series of communications with the IRS causing the Court to sympathize with the taxpayer in…
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In a recent case out of the U.S. District Court in Wisconsin, the Court granted a motion to reconsider its previous ruling in favor of the government (filed by the IRS) in a case involving the postmark rule. Additionally, the IRS was the recipient of some pretty strong criticism from the Court. So much so,…
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