Tax Law for the Closely Held Business blog author Lou Vlahos was quoted in Peter J. Reilly’s March 4 Forbes column “Wealth Tax Act Would Double IRS Enforcement Budget—And Other Details From Sen. Warren’s Bill.”
Below is an excerpt that includes Lou’s commentary:
Tax attorney Louis Vlahos of Farrell Fritz PC noted that the tax is imposed on the last day of the year which he finds reminiscent of the old FL intangibles tax. He notes the reduction for debt and speculates about planning opportunities. There was a trust technique to get around the intangibles tax, which kind of killed it, but that probably won’t be available here. Attorney Vlahos suggests that clients avoid funding grantor trusts and consider making oneself a discretionary beneficiary of a trust subject to the consent of an “adverse” party. He also notes that valuation will be a fact intensive and subjective and there will be room for give and take.
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