Borrowing Basis From Other Assets Using Partnerships
Sponsored by the Baltimore Community Foundation
Borrowing Basis: Using a partnership to transfer basis to an appreciated asset one intends to sell that can either eliminate reporting gain on its sale or defer the reporting of that gain.
ABOUT THE PROGRAM: Rather than waiting for the income tax-free step-up in basis at death, individuals may prefer to sell an appreciated asset while they are living. The first part of this presentation will describe how the partnership income tax rules can be used to shift basis from an asset one does not intend to sell to an appreciated asset one desires to sell in the future, thereby eliminating gain when that asset is eventually sold. Borrowing basis can also be used when the appreciated asset is owned by a trust that is not exposed to estate taxes so that step-up in basis at death is not available. The second part will examine how the borrowing basis technique can be used to eliminate phantom gain or defer the reporting of the phantom gain existing in appreciated real estate where the mortgage liabilities exceed adjusted tax basis. When basis is transferred to another asset that creates potential gain in the asset from which the basis was transferred. The final part of the presentation will then examine how to deal with the potential gain created in the asset that shifted its basis to another asset.
ABOUT THE SPEAKER: Jerome M. Hesch serves as an income tax and estate planning consultant for lawyers and other tax planning professionals throughout the country. He is Special Tax Counsel to Oshins & Associates in Las Vegas Nevada, Dorot & Bensimon, in Aventura, Florida and Meltzer, Lippe, Goldstein & Breitstone, in Mineola, NY. He is a Fellow of both the American College of Trusts and Estates Council and the American College of Tax Council. He is an accomplished author publishing numerous articles, tax management portfolios, and co-authored a law school casebook on Federal Income Taxation. He was elected to the NAEPC Estate Planning Hall of Fame.
He received his BA and MBA degrees from the University of Michigan and a JD degree from the University of Buffalo Law School. He was with the Office of Chief Counsel, Internal Revenue Service and has been a full-time law professor teaching at the University of Miami School of Law and the Albany Law School, Union University. He is currently an adjunct professor of law at the Vanderbilt University Law School, Florida International University Law School, the University of Miami School of Law Graduate Program in Estate Planning and the On-Line LL.M. Programs at the University of San Francisco Law School and the Boston University School of Law.
· 7:15 a.m. Coffee & Networking
· 7:30 Breakfast
· 8:00-10:00 – Mr. Hesch’s Presentation
Two Meeting Requirement – This the final program of the BEPC 2018-2019 year. To maintain membership in the Baltimore Estate Planning Council, active members are required to attend at least two educational meetings annually. Reservations must be pre-paid.
Cancellation Policy – Reservations must be canceled in writing or by e-mail and received no later than Friday May 3, 2019.
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