Wealth & Risk Management Blog

William Byrnes (Texas A&M) tax & compliance articles

Archive for August, 2010

Death and Taxes – The American Way

Posted by William Byrnes on August 31, 2010


Why is this Topic Important to Financial Professionals? The only certainties in this life are death and taxes. Right?  A brief discussion of the history of taxation on the American people is discussed in relation to the new reporting requirements surrounding the Patient Protection and Affordable Care Act, as discussed earlier this week.

Please read my blogticle at Advisor FYI Death and Taxes – The American Way

Posted in Legal History, Taxation | Tagged: , | Leave a Comment »

Statutory Employees: Full-time Life Insurance Salespeople

Posted by William Byrnes on August 30, 2010


Why is this Topic Important to Financial Professionals? General classification and taxation of insurance professionals is governed by statute.  Therefore, a basic discussion of the law as it applies to insurance agents and tax is below.

Please read my blogticle at Advisor FYI Statutory Employees: Full-time Life Insurance Salespeople

For a detailed analysis regarding the tax treatment of life insurance agent, see Tax Facts Q 361. Who is an owner-employee for purposes of the qualification requirements?

Posted in Uncategorized | 1 Comment »

SEC’s Plain English Requirement Equals Expensive Client Disclosures

Posted by William Byrnes on August 29, 2010


As of January 1, 2011, the Securities and Exchange Commission will require advisers to make plain-English disclosures to their clients, laying out the adviser’s business practices, conflicts of interest, and the background of the firm and its personnel.  The requirement is designed to drag information out of the fine print on client disclosures and present it in easily understandable language. Although innocuous sounding on its face, the requirement will carry a significant cost in time and resources.

Today’s analysis by our Experts Robert Bloink and William Byrnes is located at AdvisorFX Journal SEC’s Plain English Requirement Equals Expensive Client Disclosures

For previous commentary, see AdvisorFX Journal What You Don’t Know Yet Might Hurt You: A Broker’s Duties under the Financial Reform Act

After reading the analysis, we invite your questions and comments about indexed annuities by posting them below, or by calling the Panel of Experts.

Posted in Compliance | Tagged: , , | Leave a Comment »

Independent Contractors Tax and Reporting Issues

Posted by William Byrnes on August 28, 2010


Why is this Topic Important to Financial Professionals:  A general understanding of classification of employees versus independent contractors will not only save your client aggravation, but could also avoid additional taxes and penalties.  In addition, the tax consequences of this determination can be far reaching, and an understanding of the concepts of income and types of allowable deductions can help enable more comprehensive planning for the Financial professional and clients.

Please read my blogticle at Advisor FYI Independent Contractors Tax and Reporting Issues

For a detailed analysis regarding independent contractors, see Tax Facts Q 814. How are business expenses reported for income tax purposes?

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Employees, Independent Contactors, 1099s and New Legislation That Your Clients Should Know About

Posted by William Byrnes on August 27, 2010


Why is this Topic Important to Financial Professionals? Many small business owners are faced with issues surrounding Form 1099 and how the rules apply to their businesses.  New regulations passed as part of Health Care Reform will change the past Form 1099 standard, requiring its applicability to many more situations and persons.

Please read my blogticle at Advisor FYI Employees, Independent Contactors, 1099s and New Legislation That Your Clients Should Know About

For a detailed analysis regarding independent contractors, see Tax Facts Q 814. How are business expenses reported for income tax purposes?

Posted in Taxation | Tagged: , , | Leave a Comment »

Limited Liability Companies: A New Best Friend

Posted by William Byrnes on August 26, 2010


Why is this Topic Important to Financial Professionals?  Look in most local business journals that report on the formation of new business entities and you will see 95% of new businesses are formed as an “L.L.C.”  This company structure is the primary one for entrepreneurs, professionals, and small businesses.  However, after twenty years of significant usage, many questions about this form of entity are still novel.  The financial professional should be able to explain to a client the basics of the Limited Liability Company.

Please read my blogticle at Advisor FYI Limited Liability Companies: A New Best Friend

For a detailed analysis of the tax and non-tax Advantages of a Close Corporation see AdvisorFX Main Library Section 14. Close Corporations I—The Limited Liability Company (LLC) http://www.advisorfx.com/articles/f14_1_2_2080.aspx?action=13

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Capital Gains Increasing Importance for Valuation Discounts: Jensen v. Commissioner

Posted by William Byrnes on August 25, 2010


A recent Tax Court case makes up for some of the ground lost by FLPs in recent cases reining in more aggressive valuation discounts. In Jensen v. Commissioner (T.C. Memo 2010-182), an estate holding an interest in a closely-held corporation that owned fairly significant real estate won its case against the IRS.

Today’s analysis by our Experts Robert Bloink and William Byrnes is located at AdvisorFX Journal Capital Gains Increasing Importance for Valuation Discounts: Jensen v. Commissioner

For a detailed analysis of Valuation For Gift Tax Purposes, see AdvisorFX Main Library Section 7. Gift Taxes D—Valuation For Gift Tax Purposes.

After reading the analysis, we invite your questions and comments about indexed annuities by posting them below, or by calling the Panel of Experts.

Posted in Uncategorized | Tagged: , , | Leave a Comment »

Accounting for Corporations and Limited Liability Companies and How it Relates to Insurance

Posted by William Byrnes on August 24, 2010


This blogticle explores the importance of corporate accounting and how it relates to financial planning.  Basics of accounting and financial statement presentation are discussed in connection with insurance planning.

Please read my blogticle at Advisor FYI Accounting for Corporations and Limited Liability Companies and How it Relates to Insurance

Posted in Insurance, Uncategorized | Tagged: , | 1 Comment »

Indexed Annuities: Still Insurance

Posted by William Byrnes on August 23, 2010


The Dodd-Frank Wall Street Reform and Consumer Protection Act conclusively excludes indexed annuities from regulation as securities by the Securities and Exchange Commission (SEC).

Today’s analysis by our Experts Robert Bloink and William Byrnes is located at AdvisorFX Journal Indexed Annuities: Still Insurance

Posted in Uncategorized | Tagged: | 1 Comment »

The Best and Worst States to Incorporate a Business

Posted by William Byrnes on August 23, 2010


Why is this Topic Important to Financial Professionals?  This article will examine factors that either increase or decrease the desirability of any one of the fifty states in regards to the formation of a corporation.  Clients want a business climate that is economically efficient.  A financial professional should be able to provide clients at least a cursory explanation of the company law and tax differences among the states.

Please read my blogticle at Advisor FYI The Best and Worst States to Incorporate a Business

Posted in Taxation, Wealth Management | Tagged: , | Leave a Comment »

STOLI to STOA: First Drops in a Gathering Storm

Posted by William Byrnes on August 22, 2010


As STOLI (stranger originated life insurance) transactions have receded due to nearly unanimous condemnation of the practice, a wave of Stranger Originated Annuities (STOAs) is growing.

Today’s analysis by our Experts Robert Bloink and William Byrnes is located at AdvisorFX Journal STOLI to STOA: First Drops in a Gathering Storm

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The Advantages and Disadvantages of Incorporation

Posted by William Byrnes on August 21, 2010


Why Is This Topic Important to Financial Professionals? This article discusses the benefits and detriments of corporation business structures for use in financial planning.

Please read my blogticle at Advisor FYI The Advantages and Disadvantages of Incorporation

For a detailed analysis of the tax and non-tax Advantages of a Close Corporation see AdvisorFX Main Library Section 14. Close Corporations G—Professional And Executive Corporations

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What You Don’t Know Yet Might Hurt You: A Broker’s Duties Under the Financial Reform Act

Posted by William Byrnes on August 20, 2010


The Wall Street Reform Act—signed into law by President Obama on July 21, 2010—significantly alters the relationship between broker-dealers and their retail customers, potentially expanding brokers’ exposure to lawsuits, decreasing their revenue, and constraining the range of products they are permitted to offer to their clients.

Today’s analysis by our Experts Robert Bloink and William Byrnes is located at AdvisorFX Journal What You Don’t Know Yet Might Hurt You: A Broker’s Duties under the Financial Reform Act

For previous commentary, see AdvisorFX Journal Dodd-Frank Wall Street Reform and Consumer Protection Act

Posted in Uncategorized | Leave a Comment »

Incorporation Basics for Closely Held Corporations

Posted by William Byrnes on August 19, 2010


Why is this Topic Important to Financial Professionals?  Common estate plans may include a business structure.  Helping clients form and manage structures allows a financial professional to more fully participate in clients’ planning.

Please read my blogticle at Advisor FYI Incorporation Basics for Closely Held Corporations

Posted in Uncategorized | Tagged: , | Leave a Comment »

 
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