Volume 3 | October 15, 2021
BUSINESS INSIGHTS
Dear Client,

Although much of the House Ways and Means Committee's tax proposals appear to significantly undercut the planning tools available to tax advisors and estate planners, we would like to highlight a provision considered to be a welcome bright spot! A funding proposal for The Build Back Better Act, introduced on September 13, 2021, includes a provision giving certain old and cold S corporations the opportunity to convert to partnerships. Eligible corporations must have been an S corporation back on May 13, 1996 (the year ‘check the box’ regulations were issued by the IRS) and the conversion must be a Qualified Liquidation to be considered a non-taxable event. With a Qualified Liquidation, there must be a complete liquidation of the S corporation coupled with a transfer of substantially all assets and liabilities to a domestic partnership within a two-year period starting December 31, 2021 (Section 332(b)).

Please keep in mind this is only a proposal from the House Ways and Means Committee which could become law if incorporated into the final legislation and passed by Congress and signed by the President.

If you have any questions regarding this proposal or any other corporate matter, please contact Todd or me at 404-255-7400 or info@hoffmanestatelaw.com.

Sincerely,
Joe

On September 13, 2021, the House Ways and Means Committee released a proposal for funding President Biden’s Build Back Better Act as part of the budget reconciliation plan. The Ways and Means Committee’s plan includes tax changes affecting a multitude of areas. Below are some of the proposed changes that may impact your estate plan.   Read More


We refer to the purchase price of an asset as “basis.” Capital gains tax is payable on the difference between an asset’s purchase price and its fair market value at the time of sale. Depending on your income, the current capital gains tax rate is 0%, 15% or 20%. A “step up in basis” refers to an adjustment in value of an inherited asset, such as stocks, bonds or real estate, upon the passing of the original purchaser of the asset.   Read More


A trademark is a word or image that serves to inform consumers of the source of a product or service. Sometimes, an individual’s name identifies the business providing goods or services. Consider the likes of certain fashion house founders, such as Gabrielle Chanel, founder of the iconic Chanel brand, or Christian Dior of Dior. These brands, and countless brands we encounter daily, are instantaneously recognizable because of their trademarks. Because of this, trademarks are invaluable business assets. Read More

President Biden’s American Families Plan announced on April 28, 2021, is the third leg in the POTUS’ Build Back Better initiative designed to rescue, recover, and rebuild the country. This $1.9 trillion package, comprised of $1 trillion in spending and $900 million in tax cuts, will be partially offset by income tax increases for wealthy Americans. What are some of these proposed tax increases? Well for starters, the income tax rate will be increased to 39.6% from 37% for taxpayers in the top 1% of the federal income tax bracket. Read More
Hoffman & Associates | 404-255-7400 | www.hoffmanestatelaw.com