Category Archives: Tax Planning
Gift-Giving Strategies: Grantor Retained Annuity Trusts
A Grantor Retained Annuity Trust, referred to as the catchy “GRAT,” is a fairly low-risk option for those looking to transfer funds. Utilizing a GRAT to avoid taxation on gifts may prove an interesting solution to your gift-giving dilemmas. Ask … Continue reading
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Gift-Giving Strategies: Intentionally Defective Grantor Trust (IDGT)
If you have consulted a Massachusetts tax planning lawyer for assistance with your gift-giving planning, he or she may have suggested utilizing an Intentionally Defective Grantor Trust, or IDGT, to protect your assets from extra taxation. This strangely named but … Continue reading
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Deducting Business Start-Up Costs
Fledgling businesses often do not see a profit for several years, if ever. Individuals who are seeking to start a business should conduct a full investigation into the costs and potential for profit before moving forward. It is highly advisable … Continue reading
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Taxation and “S” Corporations
S Corporations are entities formed under the provisions of Subchapter S of the Internal Revenue Code and Massachusetts Corporation Law, Chapter 156D. These corporations differ from their C counterparts mainly by the fact that federal taxes are allowed to flow … Continue reading
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Small Business Tax Penalties
It is easy for a small business owner to fall into the trap of IRS penalties. The old adage that “ignorance is no excuse” is an unfortunate truism for owners of small enterprises, many of whom enter into a business … Continue reading
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Selling a Corporation Free of Tax
Internal Revenue Code section 368.13 allows a corporation that is being purchased by another to enjoy certain tax-free advantages. The rules are complex, so it is a good idea to work with a Boston tax-planning attorney before you proceed with … Continue reading
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Tax-Exempt Organizations
Various business entities may exist under the tax-exempt provisions of the Internal Revenue Code §501(c) (3). An individual may wish to create a business that provides addictions treatment or assistance and shelter to battered women, for instance. However, forming a … Continue reading
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