Author : Ethan D. Millar
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)
Book Synopsis State Taxation of Llcs is Not Always Black and White by : Ethan D. Millar
Download or read book State Taxation of Llcs is Not Always Black and White written by Ethan D. Millar and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this article is to identify and discuss some of the major state tax traps and planning opportunities involving LLCs and their members, while providing a overview of the general rules governing this area. These traps and opportunities often arise due to certain complexities and ambiguities in state tax law. For example, in most states, the treatment of LLCs for non-income tax purposes (e.g., sales/use or real property transfer tax purposes) does not conform to federal law, and therefore transfers of property to or from LLCs that may be nontaxable for federal and state income tax purposes could trigger other types of taxes. Conversely, an asset acquisition that is taxable for income tax purposes can often be structured using LLCs to avoid other types of taxes. Differing state apportionment methods can also create traps (such as double taxation) or opportunities (such as nowhere income) for state tax planners. This article also examines several grey areas of taxation which, although they may not necessarily present planning opportunities, may create potentially viable defenses for certain taxpayers under audit. This article focuses on Georgia's tax system, as that system is fairly representative of the tax systems of many other states, but also discusses alternative rules or approaches taken by other states with respect to the issues discussed in this article. Many of these issues have been significantly affected by recent developments in the law.
