Blackman Kallick’s Family Office Expert Advises Investors to Act Quickly as “Tax Shangri-La” Will End Soon

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Tax expert brings to forefront tax saving opportunities from the once in a generation simultaneous occurrence of low interest rates and certain expiring tax provisions combined with unique market valuations of some private and public investments. Also introduces new approach on how to consider impact on current and future investments from pending Federal tax changes of rates and preference items.

Wealthy investors and private business owners have a once in a generation opportunity to capitalize on income tax and wealth transfer tax savings opportunities afforded by the new, but soon to expire $5,000,000 unified gift and estate rules, the impending expiration of the 15% tax rate for dividends and long term capital gains, current low IRS interest rates used for gifting, and today’s unique valuations of some private and public investments.

Mark J. Blumenthal, Chairman of Blackman Kallick’s Family Office Services Group, recently spoke to family business owners and private investors at the Family Office Forum in Chicago on this subject in a presentation, entitled “Good-bye Tax Shangri-La.”

Blumenthal stressed that the tax and investor-friendly “convergence of these four factors could change at any time” and that “the clock is ticking” regarding the end of the current tax breaks on December 31, 2012, or sooner, if bargained away in compromise legislation.

Only a few of the family offices and wealthy investors attending the conference indicated that they were aware of and taking advantage of at least some these incentives. Blumenthal warned that it is “…like the wild, wild west. If you are not buying, selling, or gifting something, you will look back on this period in history and say, I was scared and I missed it!"

In the near future, wealthy investors should be carefully anticipating the specific impact of any pending tax rate changes and changes to tax preference items, as these changes will affect distinct businesses and ownership structures very differently.

Blumenthal stated, “One thing is certain, there will be winners and losers when Congress changes tax rates and preference items. For example, if tax rates go down and the research and development (R & D) credit is eliminated, the owner of a consulting business might see his or her tax cost decrease. The next-door neighbor, however, who has the same income but owns a manufacturing plant and invests heavily in R & D, could see his or her tax cost go up.”

To request a copy of Mark Blumenthal’s presentation, visit the Family Office presentations request page at: To learn more about the Family Office Services Group or Blackman Kallick, visit

About Blackman Kallick

Blackman Kallick’s Family Office Services Group provides a complete range of tax planning and tax preparation, internal control and operations review, and other services tailored to family offices and affluent families, nation-wide. As a firm, Blackman Kallick provides audit, tax and consulting services for privately held and public companies as well as not-for-profit organizations and high net worth individuals.

Founded in 1962, Blackman Kallick is the 9th largest accounting and consulting firm in Chicago (Crain’s Chicago Business, October 18, 2010), employs more than 230 professionals and is a leading member of HLB International, a worldwide network of independent professional accounting firms and business advisors in 450 offices spanning 100 countries. With specialized industry practices that include Manufacturing and Distribution, Construction, Family Office, Food, Hospitality, Insurance, Not-for-Profit, Private Equity and Venture Capital, Real Estate and Healthcare Services, Blackman Kallick combines sophisticated, market-leading services with an accessible and personable approach.

About Mark Blumenthal

Mark Blumenthal, CPA, is a Partner and Chairman of the Family Office Service Group. He is also the Co-Chairman of the Private Equity Venture Capital group and the senior real estate tax partner of the firm. Mark serves as a strategic advisor to ultra affluent families, family offices, private equity/venture capital funds and mature private businesses. To read Mark's bio visit:


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Stuart Baum
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