When deciding the amounts of deductions on taxes, taxpayers have two options to consider. First, you can itemize deductions, which is often done by farmers, small business owners and those who give a lot to charities. The other method for deductions is to simply deduct a flat amount each year. That’s referred to as taking […]
Limited Liability Companies, or LLCs, are often established by business owners to protect assets and limit liabilities. Most often when an LLC is organized correctly, net taxes are not typically increased or decreased. But, there are some exceptions to this.
Taxpayers can decide to have their LLCs taxed like “S corporations” as opposed to “C corporations.” “S Corporations” are slightly less cumbersome in tax administration than “C Corporations.” Taxpayers can also decide to have their LLCs taxed like partnerships if there is more than one owner. If the LLC only has one member, then it can be taxed as a sole proprietorship. Most business attorneys will consult with a client’s tax preparation professional before advising on how an LLC should be taxed.
Real estate taxes in Ohio operate under a unique structure. Real estate taxes are defined in terms of “mills,” which are created through local governments or through residents’ votes for “levies.” Mills and millage are understood to be a percentage of the property value. The calculation process is much more complex, though, because real estate tax levies can fall under two different categories.
In the first category of real estate levies, millage is calculated as a percentage of the property value. In the second category of real estate tax levies, the levies are defined as mills, but they’re capped at the total dollar amount of money that the levy brings in during its first year.
Before the end of 2016, the IRS is expected to issue a new regulation that will significantly affect gift and estate taxes for many family businesses. Traditionally certain family-owned businesses are considered valuable due to the respective businesses’ synergy. So if one sibling wants to sell his 1/5 share of a $5 million business, his individual share would be worth less than $1 million. This concept is referred to as discounting for lack of marketability and lack of control. It’s often used in farm and business succession planning to keep things fair among heirs as well as to continue the viability of family businesses and farms. But now the IRS will be cracking down on discounts for lack of marketability and lack of control in one area: estate and gift tax calculations.