|Tax Tips Asset Protection Trusts and Family Partnerships
If you have a good asset protection lawyer or tax attorney, you will learn about using trusts and family partnerships to protect your assets and control your estate taxes. The following article, which Ken did not write, is a study of how not to set up asset protection trusts. Trust were shams Credit goes to Thomson Reuters. Imaginary Interest was Deductible When a loan is paid for which there is no allowance for interest expense, tax law requires creating “imputed interest.” This is congress’ way of requiring consistent tax treatment of activities despite what the parties agree to. In an interesting article, which Ken did not write, the IRS lost a case where they did not want interest to be deductible by the paying party. Settlement of minority shareholder Credit goes to Thomson Reuters.