Federal and State Taxation of Limited Liability Companies (2009)

Federal and State Taxation of Limited Liability Companies provides clear and reliable guidance on what the latest tax treatment is for limited liability companies and what it means for your clients or your business. This hands-on treatise is dedicated entirely to the taxation of LLCs. It answers all of your questions with an analysis of all federal tax issues applicable to LLCs with detailed references to related Code Sections and Treasury Regulations, plus cases, revenue rulings and private letter rulings. It provides a state-by-state analysis of state tax laws and filing requirements in all 50 states and the District of Columbia, with references to the applicable tax forms and places of filing listed. It explains how to prepare the most common LLC tax forms, state tax forms, checklists, practice tips, tables, and examples. This comprehensive manual offers scrupulous and exhaustive coverage of LLC taxation that accountants, tax attorneys, and CPAs working with LLCs will find invaluable for daily reference. The 2009 Edition of Federal and State Taxation of Limited Liability Companies brings you up to date on the latest developments including: - The Heartland, Habitat, Harvest, and Horticulture Act of 2008 - The use of an LLC as a tax-exempt organization - The rulings on the classification of various types of LLCs, including the reasons for electing classification as a corporation rather than a partnership - The optional classification rules for LLCs owned by spouses - The rules on taxation of LLC income, including separately stated items, charitable contributions, and Section 179 expenses - The proposed regulations on cancellation of indebtedness income - The final regulations on the pass-through of domestic production activity income, gain, loss and deduction - The new basis adjustment rules effective in 2008 on distributions of property - The rulings and regulations issued in 2008 on reorganizations between LLCs, including mergers, reincorporations, drop-down of assets into a subsidiary LLC, transfer of assets to a parent organization, conversion from one type of entity to another, and distribution of membership interests in an LLC by a trust, corporation or other entity - The final regulations under Code Secs. 704 and 737 regarding LLC mergers - The new anti-abuse rules - The final regulations under Code Sec. 721 regarding the tax treatment of noncompensatory options and convertible instruments issued by an LLC - The use of an LLC in like-kind exchanges under Code Sec.1031, including the cash out of a member before an exchange, distributions of property from an LLC prior to, during or after an exchange, the transfer of the replacement property to an LLC after the exchange, the receipt of the replacement property through an LLC, and the exchange of property for membership interests in another LLC. - The new employment tax rules for LLCs commencing January 1, 2009 - The final regulations the withholding tax obligations of an LLC if the LLC has foreign members, and the 2008 tax return filing requirements for foreign members - The 2008 rulings and cases on minority and marketability discounts for estate and gift tax purposes on transfers of membership interests in an LLC to family members The new theories advanced by the IRS to challenge the minority and marketability discount, including Code Sec. 2036(a), the trust recharacterization theory, the indirect gift theory, and the step transaction doctrine - The tax laws applicable to LLCs in all 50 states - The use of LLCs for asset protection, and the tax consequences of charging orders and creditors rights - The requirements for forming series LLCs in the states that now permit series LLCs, and the tax consequences of series LLCs.