Partnership Agreement: A law firm changed its partnership agreement by majority vote from accrual to cash basis. While state law provided that a unanimous vote is required to change any agreement between the partners, the provision of the partnership agreement trump the statute. The partnership agreement provided in general that majority vote governs, although…
Sometimes you have to wonder … Viva Las Vegas: You can deduct gambling losses only up to the amount of gambling gains. IRC Sec. 165(d). A partnership passed through its gambling gains which a partner used to offset his personal gambling losses on his personal income tax return. Partnerships (including LLCs taxed as partnerships)…
Selecting a trustee is a tough decision but the concerns you may have over potential candidates can often be mitigated by naming additional fiduciaries and including provisions in the trust document to address concerns you have. These steps can make the selection process less difficult or worrisome. The Decision Struggling over who to…
Sales of real estate can generate favorably taxed capital gains if you’re an investor, or higher taxed ordinary income if you are a dealer. The following checklist will help you characterize your activities as those of an investor and avoid dealer taint. Capital gain is realized on the “sale or exchange” of real estate…