TELESEMINAR: New Medicare Tax Impact on Business Planning for Closely Held Companies – A National Perspective
January 3, 2013
12:00 – 1:00 p.m.
1.00 MCLE hours
The new health care law imposes a new 3.8% Medicare tax on certain business and investment income. The tax will apply to distributions from pass-through entities – LLCs, S Corps, partnerships –and have a direct and substantial impact on all closely-held companies. Certain planning techniques to avoid application of the new tax can have the effect of triggering the self-employment tax. The tax will also change the economics of buying, selling and exchanging interests in closely held companies. In short, the new tax fosters many new planning traps. This program will provide you with a practical framework for understanding the new tax, how it impacts closely-held business planning, distributions and sales, and cover strategies for minimizing the tax.
- Framework for understanding how the new Medicare tax works impacts closely held businesses
- Application of new tax to salaries and distributions from partnerships, LLCs, S Corps and C Corps
- Complex interrelationship of self-employment tax and the new Medicare tax – how avoiding one, triggers the other
- Effect of new Medicare tax on real estate and other passive investments and businesses
- Planning for the sale of interests in LLCs, S Corps and partnerships
- Sophisticated strategies for avoiding impact of tax
Alson R. Martin, Lathrop and Gage, LLP, Kansas
Thomas J. Nichols, Meissner Tierney Fisher & Nichols S.C., Wisconsin