This course discusses whether a note modification is an exchange. This may be particularly important to irrevocable grantor trust planning if the bill to fund infrastructure passes. The presenter will also discuss selected common reorganizations of private businesses and how IRS practice units address partnership tax issues as well as planning for an irrevocable trust selling a pass-through entity to avoid tax traps and other opportunities.
The presenter will discuss which note modifications constitute an exchange, plans to pay in kind rather than with cash, and strategic issues in trying to discount notes. The presenter will analyze how these inform planning if the infrastructure bill is passed, but this knowledge is important whether or not it is enacted.
Then the subject matter will shift to reorganizing private businesses. Although one proposal would allow certain pre-1997 S corporations to convert tax-free to partnership income taxation, the presenter will discuss how to migrate future increases in value, and perhaps most of the current value, to partnership taxation even without this change. This will also include a 2021 letter ruling on how to isolate risky elements of a business from less risky components. Finally, the presenter will briefly review IRS Practice Units issued in 2020-2021 relating to selected partnership issues and where to find them in the accompanied materials.
Topics also discussed include planning to avoid tax traps and how to take advantage of opportunities when a trust sells stock in an S corporation, including riming for turning off grantor trust powers, watching for mismatches between expectations when selling and what appears on each owner’s K-1, in addition to not only anticipatory but also retroactive planning for QSSTs. The presenter will mention how some of that differs from planning for the sale of a partnership interest.
Steve has drafted trusts and a full range of estate planning documents for clients to help grow, preserve, and transmit their family wealth. He has also prepared organizational documents for limited liability companies, corporations, and partnerships to implement their owners' wishes regarding current and future control and transmission, including bringing in new owners and facilitating exit strategies.
Steve enjoys helping clients structure their affairs to achieve their personal, business, and financial goals while reducing the drag that taxes imposed on them. His firm provides full service to businesses; however, he also acts as counsel on specialized matters while cooperating and facilitating the continued involvement of an existing legal, accounting, and financial services team. Steve maintains his CPA license but prefers to refer income tax returns to practicing CPAs.
Steve Gorin is the former president and an ongoing contributor to Covenant Place’s strategic initiatives. It is a senior affordable housing community with a groundbreaking model for integrated residents with the surrounding community and facilitating holistic services to enrich their lives.
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For approximately 90 years, Thompson Coburn LLP has provided the quality legal services and counsel our clients demand to achieve their most critical business goals. Whether helping with a tax, estate planning, real estate or employment issue, navigating a complex acquisition or defending a product or service in litigation, we have the knowledge and resources to meet any legal need.
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