Planning Potpourri


Readers' Comments:


Qualified Joint Venture - May 2008 Recent Developments discussed CCA 200816030. For a husband and wife to make the election under Code Section 761(f) to avoid filing a partnership tax return, they must be conducting a "trade or business". The IRS has indicated that the spouses must own the business as co-owners and not in the name of a state law entity. [Thanks to Todd Wieseneck, Esq.]


Appraisals - August 2008 Lead article "Appraisals: Key to Planning" mentioned that the factors noted in Revenue Rulings 59-60 and 68-609 should be considered. Of the two, 59-60 remains the primary source. According to one expert the capitalized excess earnings method of 68-609 is not commonly used. [Thanks to Kenneth Arlein].


Rental Real Estate Clean Ups:

It appears that environmental issues are not the only clean up many property owners have to worry about. The government has estimated that 53% of individuals owning rental properties inappropriately report their tax results, to the tune of an aggregate $12.4 billion understatement. That's not chickenfeed. Expect tougher tax audits of real estate rental activities. If you're being loose with your compliance clean up your act before Uncle Sam begins what will likely be a crack down. GAO-08-956. See the full report at


Declining Insurance Rates:

Good News: Life insurance rates are declining, in part due to increased mortality. With the stock market meltdown, one source of savings might be to review your insurance coverage and see if you can identify any opportunities for cost savings. Bad News: For those of you who got snookered (whether by a broker or your own greed) into buying an insurance policy with the intent to sell it in a couple of years, the deal just got worse (apart from other clamp-downs on such policies). Increased life expectancy means buyers will pay less for those policies! Evaluate your options with an independent insurance consultant.

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