Arizona Taxation

Intentionally Defective Grantor Trusts (IDGT) for Tax, Medicaid, & Asset Protection Planning

A grantor trust is a trust in which the grantor, sometimes called a settlor or trustor, retains an interest. One particular type of grantor trust, called an intentionally defective grantor trust (IDGT), leverages disparities in the federal income and estate taxes to provide opportunities for tax, Medicaid, and asset protection planning.

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Self-Employment Tax: LLC v. S-Corporation

Although many new business owners who will actively participate in their businesses choose to organize limited liability companies (LLCs) as opposed to incorporating S-Corporations because of, among other things, greater flexibility and the lack of state-required reporting formalities, there is at least one potentially compelling reason to incorporate an S-Corporation, or at least elect taxation as an S-Corporation under Subchapter S of the Internal Revenue Code (IRC): potentially lower employment taxes.

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Inside / Outside Tax Basis & Partnerships

Tax basis in the amount upon which taxable gain or loss, if any, will be calculated on the occurrence of various events, including but not limited to the disposition of an asset or sale of an interest in an entity.

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American Taxpayer Relief Act of 2012

Late last night, the U.S. House of Representatives approved the bill, passed by the U.S. Senate on December 31, 2012, that will become the American Taxpayer Relief Act of 2012 ("ATRA"). President Obama is expected to sign the bill into law today.

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Current & Historical Federal Estate Tax Structure, Exemptions & Rates

The federal estate tax only applies to those estates whose value is in excess of a specific amount, often called the federal estate tax exemption. If the estate's value is less than the federal exemption amount, it is not subject to the federal estate tax. However, if the estate's value is above the federal exemption amount, any amount above the exemption is taxed at one or a series of rates.

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