You May Have to File Via Electronic Deposit. Electronic Returns for Large Partnerships. Partnerships with more than 100 partners must files their returns electronically, effective for tax years ending on or after December 31, 2000. More Small Businesses Can Pay Employment Taxes Quarterly. If certain conditions are met, an executor may elect to value qualified real property used for farming purposes or in a trade or business on the basis of the property's value for its actual use, rather than on its highest and best use.
Additional increases are likely next year in both of the above exemptions.
This is the method we have consistently recommended, and still do, but there are some situations in which this is not possible, in which cases the other approach is used. In the other approach, Mr. or Mrs. Client creates the LP or LLC with minimal initial funding and then transfers assets to the LP or LLC over time. The Tax Court case in question deals with the latter situation. Basically, the Tax Court ruled that gifts made to an existing LP or LLC were really just indirect gifts to the limited partners or non-voting LLC members. Put another way, the court ruled that when Mr. or Mrs. Client contributes assets to an LP or LLC in a manner that increases the capital accounts of the limited partners or non-voting LLC members, Mr. or Mrs. Client is really just making an indirect gift to these persons.