Message from the Firm
By Brad Cohen
Choice of entity as well as state of incorporation can have dramatic legal, tax & operational implications when forming a real estate investment vehicle. Lee Reicher and David Schwartz discuss these issues and suggest solutions.
Liquidating a corporation can be income tax hazardous to your financial health. Rich Luftman and I present a real life example in which the principals were surprised by the negative tax result and the advice we gave to avoid such surprises.
Recent changes in income tax law have provided reduced tax rates on capital gains and "qualified dividends." A controlled foreign corporation that has subpart F income, however, may not qualify for the lower capital gains rate. Robin Gilden and Kalyani Chirra discuss this situation and suggest ways for the corporation to make actual distributions that would qualify for the lower rate.
As always, if you have any questions or comments, please contact me or one of the attorneys who has written an article.
Reprinted with permission,
© 2004 Reish Luftman Reicher & Cohen. All rights reserved. The Reish Luftman Reicher & Cohen Business Advisor Report is published as a general informational source. Articles are general in nature and are not intended to constitute legal advice in any particular matter. Transmission of this report does not create an attorney-client relationship. Reish Luftman Reicher & Cohen does not warrant and is not responsible for errors or omissions in the content of this report.
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