SHARP LEGAL GROUP, A PROFESSIONAL CORPORATION

01/13/2010

The IRS in Revenue Ruling 74-78 provides the ability of a professional to deduct the costs of specialty graduate school.  In the revenue ruling, the IRS ruled that a dentist enrolled in an orthodontics program could deduct the costs of the orthodontics degree because the orthodontics degree was to enhance his skill in his current profession and not training towards an other field.

For further information on what degrees and expenses are deductible business expenses please contact us.

06/20/2011

A great method for transferring wealth from one generation to the next is with the use of LLC's and a gifting strategy.  Currently, gifts of under $13,000.00 are permissible without the filing of Form 709 (Federal Gift Tax Return); thus not reducing an individual's lifetime exemption.  Wealth is transferred by first funding the LLC with real property holdings and then transferring a percentage of LLC ownership to the LLC member's children.  Calculations and a un-marketability discount are used to determine what percentage of the LLC equals $13,000.00.  The transfer of interest is recorded on the LLC's From 1065 (Partnership Tax Return), the member files Form 709 (starting the statute of limitations) and wealth is effectively transferred to the next generation without incurring a reduction of the lifetime gifting exemption.

For further information on what degrees and expenses are deductible business expenses please contact us.