Take-Away: With the cryptocurrency boom in the news these days, it is important to know the federal taxation associated with crypto-mining. A token awarded to a crypto-miner will be taxed as ordinary income, while the sale of that reward-token will be taxed as the miner’s sale of a capital asset. Background: In the recent past […]

Take-Away: The Treasury Department’s tax proposals to generate revenues as part of the 2023 budget appear to be pretty much the same as many of the tax law proposals we read about in 2021, with only a few modest alterations. Background: In the Treasury Department’s General Explanations of the Administration’s Fiscal Year 2023 Revenue Proposals […]

Take-Away: An estate planning trend that is gaining some traction across the country is the adoption of a purpose trust to hold a closely held business. While there may be some definite advantages to holding a family business in a purpose trust, the income tax consequences can pose a major hurdle. Background: The necessary elements […]

Take-Away: In a recent survey among millionaires, 70% of the respondents expressed anxiety over leaving too much money to their heirs. Background: The Motley Fool recently conducted a survey of 2,000 individuals with a net worth over $1.0 million about their attitudes towards inheritances. One of the top concerns reported by 67% of these high […]

Take-Away: A trustee that assists an individual in asset protection strategies needs to protect itself against potential future claims of the individual’s creditors as ‘aiding and abetting’ the voidable transaction. Anyone who works with a debtor should seriously consider obtaining an affidavit of solvency from the debtor, as protection more for the service provider than […]

Take-Away: Unlike several other states, Michigan does not have a statute that formally recognizes the right of publicity. However, there is recognized a common law right of publicity by courts. Background: As a generalization, the right of publicity arises from the right of privacy. As one Tax Court Judge recently described it in the highly […]

Take-Away: A bill has been filed in the Senate that would permit employees to fund accounts, thus reducing their taxable income, from which to make charitable gifts. Background: Senator Ben Sasses of Nebraska introduced in November a bill to encourage philanthropy. [Senate Bill 3191.] That bill, called the Everyday Philanthropist Act, has been referred to […]

Take-Away: On December 8, 2021, FinCEN published 114 pages of proposed Regulations to require certain entities, but not irrevocable trusts (so far), to file reports with FinCEN that identify two categories of individuals: (i) beneficial owners of an entity; and (ii) individuals who have filed the application with specified governmental authorities to form the entity […]

Take-Away: It may be possible, through an LLC Operating Agreement, to direct who inherits a deceased Member’s interest in the LLC. Background: The use of LLCs has grown dramatically over the years by families with closely held business interests and investments, including commercial real estate. The LLC is a popular form of entity to hold […]

Take-Away: As time passes, more and more individuals and their estates may hold investments in cannabis-related businesses. Interesting estate planning questions arise at the federal level if a decedent’s estate holds an investment in cannabis license or a cannabis-related business. Background: Over 40 states and the District of Columbia have legalized cannabis sales in some […]