Residential Landlords Beware
- by M. Laurie Murphy
In rentals that are governed by rent control, courts will not look favorably at a notice and later attempt to evict if the notice appears to be pretext to conceal the true purpose of the eviction.
A "BIG" Tax Problem Is Now Easier to Avoid When Converting…
- by Michael R. Morris
To avoid the hefty corporate and shareholder federal tax on distributions, many corporations decide to switch from C to S corporation status. However, if a C corporation elects to switch to S status, the S corporation will be subject to the built-in capital gains (“BIG”) tax at the highest corporate rate (presently 35%) on all appreciation on its assets at the date of conversion if there is a triggering event—usually a sale—during the "recognition period." Good news: the recognition period has been cut in half—from ten to five years.
Preventing a Tax Nightmare: How Divorcing Shareholders in a Corporate…
- by Michael R. Morris
A 50/50 shareholder in an S corporation comprised of several different entertainment businesses wanted a corporate divorce from his co-shareholder. Under the settlement, certain corporate assets were to be transferred to one of the shareholders in exchange for all of his stock. The assets in question were worth more than $2.5 million. What’s wrong with this arrangement? The answer is EVERYTHING.!!!
Fiduciaries Beware: Bankruptcy may not absolve you of judgments…
- by M. Laurie Murphy
In a recent case decided by the Bankruptcy Appellate Panel for the 9th Circuit, the court refused to discharge a debt incurred by the debtor who previously acted as the administrator of an estate.
Guarantors Catch a Break
- by M. Laurie Murphy
It is quite common for lenders to require certain loans be personally guaranteed by one or more of the principals. However, lenders' ability to pursue guarantors if the borrowing entity defaults, though often perceived by lenders as limitless, does indeed have its limits.
Who You Gonna Call?
- by Stephen F. Moeller
In the music world, big hits come and go, but for a song to remain popular 30 years after its release is extremely rare. When these exceptional pop treasures do emerge, it can mean a lifetime of royalties for the artist. But if the record company doesn’t accurately report those numbers, the songwriter must take swift and aggressive legal action to get paid what they’re due.