The U.S. Treasury Department is thinking about implementing new regulations that would raise the value of taxable assets that taxpayers transfer into family partnerships and LLCs. It is common for wealthy families to obtain valuable tax discounts by making such transfers. Speculators expect the changes, which will have major ramifications, to be made in September. This column does a good job explaining how these asset transfers into family partnerships and LLCs work. Financial planners are going to have to stay ahead of the proposed regulatory changes if they want to properly serve the interests of their clients.
See Robert Milburn, IRS Considers New Tax on Wealthy Families, Barron’s, June 30, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
