Tag Archives: asset protection

IRS Tax Audits: Protecting Assets Against IRS Seizure

May 25, 2016  |   Posted by :   |   Asset Protection   |   1 Comment

For US taxpayers who are under an IRS tax audit, asset protection is a real concern since they are subject to immediate asset seizures under IRS jeopardy assessments (if the IRS determines that collection is at risk). If they lose the audit and do not appeal may have tax liens filed against them which subjects […]

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Asset Protection: The Ultimate Strategy with Tax Planning

June 04, 2013  |   Posted by :   |   Asset Protection   |   0 Comments

In collaboration with my colleague, David Richardson, (offshore insurance expert, international tax expert, dr@mid-oceanconsulting.com) we prepared the enclosed article: Asset Protection: The Ultimate Strategy (with Tax Planning) Investors concerned about third party creditor attachment may seek “ultimate asset protection” for their assets through a Puerto Rico life insurance policy owned by a U.S. Grantor Trust domiciled […]

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Asset Protection Revisited

April 04, 2013  |   Posted by :   |   Asset Protection   |   0 Comments

By David Richardson, Mid-Ocean Consulting Ltd. U.S. taxpayers with unreported income face asset seizures under jeopardy tax assessments. David Richardson (Mid-Ocean Consulting) has written the following article on planning that could exempt assets from such a seizure. Absent major tort reform, wealthy Americans (and increasingly, HMW individuals internationally), may actually see an increase in litigation […]

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Asset Protection – LLCs and Tax Planning 2013

April 03, 2013  |   Posted by :   |   Asset Protection   |   0 Comments

In 2013, self-employment tax (i.e. a tax on net earnings from self-employment) which consists of Social Security Tax (FICA) and Medicare taxes are imposed on LLC members, but not on S-Corporation shareholders. As a tax-planning strategy, an LLC may be wholly-owned by an S-Corporation. LLC earnings are distributed to the LLC member, S-Corporation. There is […]

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Asset Protection – S-Corporations, LLC and Tax Planning

April 03, 2013  |   Posted by :   |   Asset Protection   |   0 Comments

Both LLCs and S-Corporations are tax-reporting net income tax-paying entities. LLCs/S-Corporations pay a $800 minimum California tax, S-Corporations pay a 1.5% California corporate level tax, LLCs pay an annual “gross receipts tax”, based on gross income: Income / Tax $0-$250,000 / $0 $250,000-$499,000 / $900 $500,000-$999,000 / $2,500 $1m – $4.99m / $6,000 $5m+ / […]

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Asset Protection – LLCs and Investors

April 02, 2013  |   Posted by :   |   Asset Protection   |   0 Comments

Tax Audits and Creditor Protection LLCs may reduce IRS tax audit risk and offer third party creditor asset protection. IRS Tax Audits For individual taxpayers the IRS audit risk: 1. All Taxpayers (2013), 1.0% (1 in 100); 2. Taxpayers earning over $1m (2012), 12.48% (1 in 8); The audit risk for LLCs is 0.4% (4/10 […]

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Asset Protection Creditor Remedy – Charging Orders

April 02, 2013  |   Posted by :   |   Asset Protection   |   0 Comments

California Limited Liability Companies In California, a creditor of a member of a limited liability company (“LLC”) is unable to seize ownership of the member’s interest in the LLC. Instead, the third party creditor receives an order from the court (“charging order”) which instructs the LLC to give the creditor any distributions that would otherwise […]

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Asset Protection – Creditors and Tiered LLCs

April 01, 2013  |   Posted by :   |   Asset Protection   |   0 Comments

Clients in the United States/California face predatory creditors, and massive amounts of litigation: 1. In 2011, in California there were 1,085,189 civil lawsuits filed in the state; 2. In 2011, in the U.S. District Courts, there were 289,252 lawsuits filed in the federal courts. Informed investors seek asset protection to preclude third party creditor attachment […]

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Asset Protection – LLCs and Real Estate

April 01, 2013  |   Posted by :   |   Asset Protection   |   0 Comments

“FIRPTA Withholding” (Tax Withholding U.S. Real Estate) The sale (or other disposition) of U.S. real property interest by a foreign person (transferor) is subject to a tax withholding of 10% of the amount realized in the disposition (35% of gain recognized by foreign corporation on distribution to its shareholders), under FIRPTA (Foreign Investment in Real […]

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Asset Protection: Creditor Remedy – Constructive Trust

March 29, 2013  |   Posted by :   |   Asset Protection   |   0 Comments

A constructive trust is a remedy that arises against one who holds legal rights to property but, which in “equity and good conscience should belong to another.”  There does not need to be a showing that the property was acquired by fraud. The creditor does not need to prove an intent to defraud. The creditor […]

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