Tax savings for business owners may be found in the Qualified Small Business Stock. As a business owner or professional looking to invest in small businesses, you’re likely always on the lookout for ways to optimize your financial strategy. One powerful but often overlooked avenue for reducing tax liability is Section 1202 stock, also known as Qualified Small Business Stock. Here we’ll break down what Section 1202 stock is, how it can benefit you, and what you need to
Continue Reading Unlocking Tax Savings for Business Owners: Section 1202 Stock

As we approach the end of September, the possibility of a government shutdown looms large, and the Internal Revenue Service is making preparations for the potential impact on its operations. Below is a summary of the IRS’s contingency plans and what taxpayers can expect in the event of a government shutdown.

Government Shutdown: A Looming Threat

If Congress fails to reach a short-term agreement to fund the government by the end of September, a government shutdown is likely to
Continue Reading IRS Preparing for Potential Government Shutdown: What You Need to Know

Those keeping an eye on the Wisconsin Supreme Court know that it’s been in the news a bit over the last month. But in this column, we look past the internal politics of the court and review the civil cases currently pending before it, paying special attention to those affecting civil practitioners in Wisconsin. The court kicks off its 2023–24 term with a relatively light September oral argument calendar, featuring just two civil cases. Constitutional rights and tax
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When a loved one passes away, the emotional toll can be overwhelming, and dealing with the complexities of tax implications may not be a priority. However, understanding the concept of “step-up in tax basis” can significantly impact the tax burden on inherited assets. In this blog post, we’ll explore the basics of the step-up in tax basis, focusing on IRC Section 1014, and how Wisconsin’s marital property laws can provide a double stepped-up basis for inherited assets.

What is
Continue Reading Tax & Wealth Advisor Alert–Understanding the “Step-Up in Tax Basis”

Here is the latest faculty scholarship appearing in the University of Wisconsin Law School Legal Studies Research Papers series found on SSRN.

We know that pro se litigants often lose. However, we know almost nothing about the circumstances in which they win. One such circumstance, this Article finds, is when they can take advantage of favorable precedent. This Article calls those favorable
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Business owners often dread the concept of “succession planning.” Succession planning requires owners to confront their own mortality and the transition of control over their cherished businesses​.

The process can, simply, seem daunting. While succession planning is perhaps considered as much of a necessary evil as visiting a dentist while expecting a cavity, proper planning can help alleviate the transition and facilitate the continuity of the business for the next generation in particularly challenging times.
Where to Begin
Continue Reading Life Insurance Planning to Fund Buy-Sell Obligations

On June 20th Governor Evers signed into law 2023 Wisconsin Act 12 (the “Act”), which repeals the personal property tax that has long been an administrative burden for authorities and a source of confusion for taxpayers.

Under the former provisions, both real and personal property was (and is until January 2024) subject to tax unless otherwise exempted by law.  Certain personal property might have been exempted based on factors such as its character, predominant use, legal classification, etc.  Prior
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Selling a home in 2023 is unlike selling a home in any year of recent memory. The majority of homeowners have mortgages with interest rates below 6.0%, and nearly a quarter have mortgages with interest rates below 3.0%. While interest rates may only be one factor when deciding to sell a home, it does not help homeowners who have to contend with the highest average home values in U.S. history.

Some homeowners have the ability to wait for conditions
Continue Reading Gain Exclusion for Sale or Exchange of Principal Residence

For individuals and businesses throughout the state of Wisconsin, property taxes can be a serious issue. The requirement to pay these taxes can place a significant financial burden on property owners, especially when taxes are increased significantly or when other related fees are imposed. In some cases, cities and towns have attempted to levy additional taxes or fees in order to fund utilities, improvements, and other expenses. However, the state of Wisconsin places limits on increases in property taxes.
Continue Reading Wisconsin Supreme Court Rules Against Illegal Property Taxes

Investors in small closely held businesses looking for ways to reduce their tax liability might want to consider taking advantage of Section 1202 stock, also known as Qualified Small Business Stock. Section 1202 of the Internal Revenue Code offers a tax break for individuals who invest in certain qualified small businesses.

So, what exactly is Section 1202 stock? In simple terms, it refers to shares of stock issued by qualified small businesses that meet specific criteria outlined in the
Continue Reading Section 1202 Stock: An Attractive Tax Benefit for Investors in Small Businesses

On May 9, 2023, the IRS Office of Chief Counsel issued Memorandum #202323006 which clarified whether certain wellness incentive payments are subject to the Federal Insurance Contributions Act (FICA), Federal Unemployment Tax Act (FUTA) and federal income tax withholding (FITW), or collectively known as “employment taxes.

The scenario described by the IRS is this:

An employer provides comprehensive health benefits through a group health plan (GHP). The GHP provides preventive care benefits such as reimbursements for the cost of
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An NIL collective is a group of boosters, donors, and community members (fans) or the like that contribute financial resources into a pool for the purpose of developing paid name, image, and likeness (NIL) opportunities for their preferred university’s student-athletes. Some collectives have for-profit arms and nonprofit arms. NIL collectives have structured their organizations to receive tax-exempt treatment from the IRS, although this was recently called into question when the IRS released a memo on the issue.

Continue Reading NIL Collectives: Tax Exempt or Not?

Tax brackets changes for 2023 have been announced by the IRS in response to rising inflation. Tax brackets play a crucial role in determining how much individuals and businesses owe in taxes. These brackets define the income ranges that correspond to different tax rates, ensuring a progressive tax system where higher earners pay a greater percentage of their income in taxes. In recent years, governments around the world have occasionally made adjustments to tax brackets to align with evolving
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A power of appointment is a legal instrument that grants an individual (the “appointee”) the authority to decide how a particular asset or assets will be distributed upon the death of the individual who created the power (the “donor”). The appointee can exercise this power during their lifetime or in their will, and they can direct the asset to be given to any person or entity they choose.

When selecting the type of power of appointment to include in
Continue Reading Tax & Wealth Advisor Alert: Powers of Appointment – A Tool to Add Flexibility Into an Estate Plan

When creating an estate plan, one of the most critical decisions you will make is selecting a personal representative and trustee, also known as “fiduciaries.” A fiduciary is a person or institution entrusted with the responsibility of managing assets and carrying out the terms of your estate plan.  Choosing the right fiduciary is essential, as they will play a significant role in ensuring your assets are managed and distributed according to your wishes. This blog post explores the various
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The choice to end a marriage is rarely easy. Even if a couple is in agreement about the divorce, and both spouses are willing to work together to split amicably, there are numerous issues that will need to be addressed during the divorce process. Some of the most complex issues will be related to the division of marital property, and in addition to determining how ownership of different assets will be addressed, a couple will need to
Continue Reading 3 Tax-Related Issues to Address During Divorce