Articles
S-Corp Salary/Dividend Split and Reasonable Compensation
One of the most common tax minimization strategies used by operational small business owners is known as the salary/dividend or salary/net income split. This strategy can only be properly executed in an s-corporation where a business owner can pay themselves a portion...
2013 Retirement Plan Contribution Limit Increases
By: Mathew Sorensen, Partner KKOS Lawyers Good news. The IRS has announced increases into the amount of money individuals may contribute into their retirement plans in 2013. The IRS increased the amounts that may be contributed to Traditional and Roth IRAs. The IRS...
2012 Estate Planning Opportunities & Year End Considerations
By: Mathew Sorensen, Partner KKOS Lawyers The 2012 estate and gift tax exemption is $5,120,000. This means that the first $5,120,000 of an individual’s estate may be inherited (at death) or gifted (during life) in 2012 before any estate or gift tax is due. This...
Obamacare 3.8% Investment Income & Real Estate Tax
The Affordable Care Act, also known as Obamacare, includes a new tax on net investment income of 3.8%. While the application of this new tax was slated…
Asset Protection for Self-Directed IRAs
When analyzing asset protection for self directed IRAs we must consider two types of potential threats. First, we must analyze how a creditor can collect against an IRA when the creditor…
Self Directed IRA Strategies & 2012 IRA/LLC Legal Update
Many investors are aware of the opportunities that are available with self directed IRAs. This article highlights the strategies being used by self directed IRA investors and addresses some important issues and some recent cases regarding the IRA/LLC strategy. As most...
What to Use?: A Warranty, Grant or Quit Claim Deed
When it comes to transferring property, such as our rental properties into LLCs and our personal residence into a Trust, it can be confusing understanding the differences between a Quit Claim Deed, Warranty Deed and other terms that may be thrown out. Some states use...
How to Have a $20 Million IRA like Mitt Romney? Self Direct It And Invest in What You Know.
The Walls Street Journal reported on January 19th that former Massachusetts Governor and Presidential candidate Mitt Romney has an IRA valued between $20 million and $100 million dollars. The article speculates about how those earnings were made and eventually...
LLC Versus Umbrella Policy
Many real estate investors and landlords often ask whether they should use an umbrella insurance policy or a LLC to protect them from liabilities that may arise on their rental property. An LLC protects the owner of the LLC from liabilities that arise on any property...
IRA Ownership of an LLC: Self-Directed IRAs and IRA/LLCs
There are numerous laws, cases, and regulations to consider in analyzing whether your IRA can own an LLC (commonly referred to as an “IRA/LLC” or a "checkbook control IRA"). Despite the complexity of the law, your IRA can own 100% of the ownership interest of an LLC...
