Most Recent Attorney’s Blog Posts

  • Quitclaim Deed Versus Warranty Deed, What to Use?
    When it comes to transferring property, such as rental properties into LLCs or our personal residence into a Trust, it can be confusing understanding whether you should use a quit claim deed or a warranty deed. Here is a brief description of each type of Deed and when they should be used. Warranty Deed– A warranty deed transfers ownership and explicitly promises the buyer that the transferor has clear title to the property, meaning it is free of liens or claims of ownership. The terms of a warranty deed should state that the transferor “warrants” and conveys the property.  The ... read more
    Source: Mat SorensenPublished on 2017-03-07By Mat Sorensen
  • Real Estate Investor Escapes Criminal Charges: Legal Factors When Raising Money from Others with Promissory Notes
    Thousands of real estate deals/projects involve the use of promissory notes as a way to raise money to fund the project.  If you are raising capital for a real estate project using promissory notes and you assume incorrectly that securities laws do not apply to your deal/project, you could be fined or possibly end up in an orange jump-suit. In a recent California case called People v. Black, the California Court of Appeals was asked to whether a promissory note in the real estate deal (an investment in land in Idaho) was a security.  Needless to say the project/deal did not ... read more
    Source: KKOSLawyersPublished on 2017-02-28By Kevin Kennedy
  • Just “Having” an S-Corp May Not be Enough
    Just “having” an S-Corporation may not be enough. It’s important you make sure to reap the tax and legal benefits of your S-Corp if you’re going to set one up. If you routinely read articles in this space or have heard any of our attorneys speak around the country, you are probably aware that we are big fans of the S-Corporation structure as a way for folks who own and operate small operational businesses (i.e. ones where they are selling goods or services and are not someone else’s W-2 employee) to get some limited liability protection and (probably more importantly) ... read more
    Source: KKOSLawyersPublished on 2017-02-21By Jarom Bergeson
  • New 990-T Filing Rule for Self-Directed IRAs
    The IRS recently released updated the extension rules for 990-T tax returns that are required for certain self-directed IRAs. Form 990-T is a tax return that must be filed by an IRA when it receives what is known as unrelated business taxable income (“UBTI”). For a description on UBTI and 990-T returns in general, see my prior article here. The new rules allow an IRA to receive a automatic 6 month extension of time to file by filing IRS Form 8868. Previously, IRAs required to file a 990-T, were only allowed an automatic 3 month extension. The new extension procedures were released ... read more
    Source: Mat SorensenPublished on 2017-02-21By Mat Sorensen
  • Who’s Liable- The Landlord or the Tenant?
    We have many clients that own residential rental and commercial properties and lawsuits involving landlords continue to happen throughout the country, and will continue so long as someone is willing to ‘rent a room’ and someone is likely not to pay or damage something. However, the question then becomes…who’s liable when something goes wrong.  As you can imagine a lot of finger pointing takes place and it can oftentimes be difficult to see who is in the right. Thus, history has taught one of the most important lessons of all- “learn from the past”.  As such, I have compiled a ... read more
    Source: KKOSLawyersPublished on 2017-02-14By Kevin Kennedy
  • Which State’s Law Applies in a Lawsuit?
    We frequently hear from clients who have been told by others that they should incorporate in Nevada (or other states outside of their home state) in order to take advantage of their favorable laws.   We have seen many individuals persuaded into incorporating in a state outside of their home, only to complain about the cost and complexity of the structure which ultimately had to be unwound. This is not to say that incorporating an entity in Nevada or Wyoming should never be considered as part of an asset protection strategy. One primary reason for incorporating a Nevada or Wyoming entity ... read more
    Source: KKOSLawyersPublished on 2017-02-14By Lee Chen
  • What Is a “Holding Company” and When Could It Make Sense to Have One?
    We have lots of clients who come to us after dealing with promoters and would-be practitioners who have recommended elaborate (and usually expensive) entity structures for their businesses. This “up-sell” approach tends to happen whether the business sells cheeseburgers or invests in buy-and-hold rental properties. One of the structures that is almost always included in these intricate structures (especially when real estate is involved) is something called a “holding company.” Simply put, a holding company is a business entity that exists solely to own other business entities. In our practice, we see this most often in the form of a ... read more
    Source: KKOSLawyersPublished on 2017-02-07By Jarom Bergeson
  • Roth IRA Conversion Re-Characterization: One “Do-Over” the IRS Allows
    Are you having second-thoughts about your Roth IRA Conversion? Did the value of your IRA decrease after you converted it? Are you unable to pay the tax on the conversion? If so, you’re in luck as you can re-characterize your Roth IRA back to a traditional IRA and you can avoid the taxes due too. Given the ups and downs of investments, this may be an excellent strategy for those whose account has decreased since their conversion in 2016. If you have converted a Traditional IRA to a Roth IRA in 2016, you can reverse the conversion by doing what is called ... read more
    Source: Mat SorensenPublished on 2017-01-30By Mat Sorensen
  • Court Rules Against California Franchise Tax Board on Overreaching Franchise Tax
    On January 12, 2017, an appeals court in California ruled, in a closely watched case of Swart Enterprises, Inc. v. Franchise Tax Board (Appeals Case F070922), that a non-resident of CA was not “doing business in California” and therefore not liable for California Franchise Taxes merely because it owned a passive investment in California.   Although this ruling may not have much impact on California residents who own and direct investments from California, it does signify the Court’s willingness to impose some limitations on California’s ability to tax under its expansive definition of “doing business in” California. California imposes a minimum ... read more
    Source: KKOSLawyersPublished on 2017-01-23By Lee Chen
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