Act now and protect your assets, before the IRS takes an action against you.
Los Angeles, California (PRWEB) July 19, 2012
The coming end of the year 2012 marks a pinnacle in the several Bush era tax cuts and other tax credits that high net-worth families and individuals currently benefit from and enjoy, however if congress fails to act and extend these tax breaks there will be a whirlwind of individuals in need of Tax Attorney and Tax Relief help. Underlying this is the somewhat obscure and mysterious “Family limited Partnership”. This is not to be confused with Offshore Bank Accounts or similar setups that are domiciled elsewhere instead the Family Limited Partnership is a perfectly legal way for wealthy families to consolidate real estate, stock and portfolio assets into one manageable entity however 2012 will prove not to be a normal year for these families and here’s why.
The expiration of the $5.12 million gift tax exemption is directly tied to these partnerships. This was an attractive way in which families could combine money to reach the higher investment requirement that in most cases private equity firms and hedge funds require by placing it into a “family limited partnership”, Furthermore and probably the most appealing feature of the partnership is the ability to discount the value of the said assets that were put into the partnership. This is possible because the shares distributed by the partnership are illiquid in the sense that the act of buying or selling can only be transacted by a member of the partnership, which presumably would most likely be a family member.
This discount is substantial, and in most cases reaches upward of 25 percent without attracting the unwanted attention of the IRS and subsequently IRS Audits What this means for the Accredited investor(s) or in this case an Affluent family or household is that an investment threshold amount of the $5.12 million can theoretically be increased to $7 million when the 25 percent discount is applied.
This all sounds great, however the legalities of establishing a family limited partnership is the cause for concern and obstacle that most families face when establishing a trust. There exists several nuances to doing this and it is recommended that a professional Tax Attorney be consulted when attempting to do this. Platinum Tax Defender is one of such companies that offer the help of a Tax Attorney to individuals interested in establishing a family limited partnership. Their services are necessary to both establish a family limited partnership and ensure compliance when doing so.
A partnership is not a means to avoid taxes; therefore transferring what can be considered “highly liquid assets” into a partnership is certainly not permissible and is one such Nuance when considering this. Families setting up partnerships also need to have a legitimate business purpose, this will save individuals the headaches of IRS Tax Liens, IRS Audits and trying to Settle Back Taxes down the road.
The end of the year marks the potential end to this tax break and the partnership strategy will undoubtedly be on the minds of many of America’s wealthy affluent households. The partnership strategy is a viable one if professional tax and accounting help is sought. Platinum Tax Defender provides affluent families with services for Settling Back Taxes, and preventative measures from IRS Audits ensuring partnerships are tax compliant. Their team of Tax Accountants, Tax Attorneys and IRS Professionals ensure that the issue of compliance is off the table.
Furthermore, there are many cases in which family limited partnerships were improperly establish, if you are a high net worth individual who fell victim to the improper establishment of a partnership, Platinum Tax Defender can provide the tax relief you seek through the various Payment Plans, Collection Appeals, Wage Garnishment Release, Bank Levy Release and other forms of retroactive relief methods to Settle Back Taxes.
Notable Texas businessman Browne Rice is a perfect example of how in his case partnerships can be used effectively to obtain returns on investment worth 166 percent and still retain 82 percent of your principal investment.
Both the potential to reap benefits or succumb to the pitfalls of setting up a partnership exists. This encompasses what classifies a liquid asset, business purposes, etc. It is therefore in your best interest to consult with professional help from Platinum Tax Defenders.
For a Free consultation Call 800-991-3242 or request more information at Platinum Tax Defenders http://www.tax-resolution.me/