There are a number of end of year tax planning strategies that businesses can use to reduce their tax burden for 2018. Here are a few of them:
IRC Section 2704 Update
As discussed in last month’s newsletter, proposed changes by the IRS to Section 2704 of the Internal Revenue Code would increase taxes for many family businesses. The proposed regulation would effectively eliminate valuation discounts when transferring or gifting ownership interests to family members. As currently written, the regulation would impose a de facto 25 to 50 percent “stealth” tax increase on each transfer or gift, and severely hamper many of these businesses.