LUTZ BUSINESS INSIGHTS
TAX REGULATION UPDATES
JIM HONZ, TAX SHAREHOLDER
Under an executive order of President Donald Trump, the Treasury Department has announced it will review several tax regulations that have been considered “burdensome”. Most important on this list are the 2704 regulations that deal with valuation discounts. Here we explain the details of these regulations and the Treasury’s proposals for reforming them.
Regulations on Valuation Discounts– The 2704 regulations, intended to limit valuation discounts for estate, gift, and generation-skipping transfer tax purposes, have recently been proposed to be withdrawn. The Treasury Department stated these regulations would not only impose difficulties and unnecessary costs on family-owned and operated businesses but that the requirements are also vague and impractical.
Proposed changes to these regulations would have:
- Applied to Limited Liability Companies (LLC’s)
- Restricted “deathbed transfers” that result in the delay of a liquidation entitlement
- Redefined definition of “Applicable Restriction”
- Added a section to tackle limitations on liquidation of individual interests in an entity and the effect of minor interests by non-family members.
For too long the tax code has been broken troublesome for working Americans. There have been numerous debates over these regulations and it is time for some clarification.
As always, our tax & valuation specialists are available to consult with you on these matters.
ABOUT THE AUTHOR
JIM HONZ + TAX SHAREHOLDER
Jim Honz joined the firm in 1984 and currently serves as a Tax Shareholder. His areas of expertise include export tax incentives (IC-DISCs), choice of business entity, and methods of accounting (including Lifo Inventory). In addition, Jim works with tax-exempt organizations on tax and organizational issues.
AREAS OF FOCUS
AFFILIATIONS AND CREDENTIALS
- American Institute of Certified Public Accountants, Member
- Nebraska Society of Certified Public Accountants, Member
- Certified Public Accountant
- Silver Medal on CPA Exam for second highest score
- BSBA in Accounting, Creighton University, Omaha, NE
- Catholic Charities, Past Board Member/President
- Nebraska Organ Recovery System, Inc., Board Member/Treasurer
- Creighton University Financial Advisory Committee, Past Alumni Member Appointed by CU President
- St. Wenceslaus Church, Elected Parish Council Member (Vice President), Chairman of Finance Committee
- Creighton University Accounting Department, Past Advisory Board Member
- SIDs 398 (Pacific Springs) & 189 (Georgetown), Elected Trustee/Chairman
- NSCPA, Political Education Committee Member
- Tax Cuts & Jobs Act + Ag Industry
- 2019 Manufacturing Outlook Survey Results
- How Would a Robotics Tax Affect Manufacturing Businesses?
- Additive Manufacturing Has Many Tax and Accounting Implications
- 2018 Manufacturing Outlook Survey Results
- Reformation of Valuation Discounts
- 2017 Manufacturing Outlook and Insights
- What are IC-DICS?
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