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FEBRUARY 2024
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Elliot Is Celebrating 3 Years at Dahl Law Group A Journey of Growth, Innovation, and Fulfillment
Reflecting on the past three years, I’m filled with gratitude, accomplishment, and a touch of disbelief. It’s true — I’m celebrating my third anniversary at Dahl Law Group. And what a ride it’s been, especially considering I joined the firm at the height of the COVID-19 pandemic.
innovation, forward-thinking strategies, and a commitment to staying ahead of the curve. It was precisely what I was looking for — a workplace equipped to weather any storm, even the unprecedented challenges posed by a global pandemic. The firm’s adaptability gave me the peace of mind I needed during uncertain times. Beyond its technological prowess, what truly made Dahl Law Group stand out was its values and culture. From day one, I felt at home. The values of the firm aligned seamlessly with my own. It’s remarkable how a workplace’s culture can shape your experience, and Dahl Law Group excelled in creating an environment that fostered collaboration, growth, and camaraderie. In these three years, I’ve had the privilege of witnessing Dahl Law Group’s remarkable growth. As Tyler mentioned in our recent edition, we’ve moved offices twice over the past three years to accommodate our expanding team. Being part of this growth has been exciting, and I’ve enjoyed seeing new team members and clients coming through our doors. My role has evolved over this period, presenting new challenges and opportunities for growth. Recently, I’ve taken on more responsibilities and hands-on experiences with our clients. What I cherish most about my career
is the relationships I build with each client. While the common perception of an attorney involves courtroom battles and heated arguments, my role revolves around proactive problem-solving in estate planning and business matters. Crafting individualized plans for our clients and making a tangible difference in their lives brings me fulfillment.
“From day one, I felt at home.”
As I look ahead to the future, I’m excited about the possibilities that lie ahead at Dahl Law Group. The past three years have proven the firm’s commitment to excellence, client satisfaction, and creating a workplace where every team member feels valued and empowered. So, here’s to celebrating three years, embracing growth, and looking forward to the exciting journey ahead with Dahl Law Group. Cheers to the future!
Three years ago, I was at a crossroads in my career, navigating the uncertainties of a global pandemic. The firm I was with lacked the technological advancements needed for remote work, and concerns about safety and adaptability were looming. That’s when I stumbled upon Dahl Law Group and met Tyler. From there, I became the first attorney he brought on board.
–Elliott Harry
Joining Dahl Law Group felt like a breath of fresh air. The firm embodied
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Navigating Offshore Wealth Key Strategies for Estate Protection
Statistically, Punxsutawney Phil’s predictions have been accurate about 40% of the time — It’s true! However, the tradition continues to be celebrated with enthusiasm. This tradition stems from ancient European beliefs and the Christian holiday of Candlemas. It’s believed that if a hibernating animal sees its shadow on this day, there will be six more weeks of winter. Groundhogs, also known as woodchucks, are skilled burrowers and are related to squirrels, not pigs. They hibernate during the winter months and emerge in early spring to find a mate. The movie “Groundhog Day,” starring Bill Murray, brought widespread attention to the day. It’s a comedic take on a weatherman experiencing the same day repeatedly. Punxsutawney Phil has a unique language, “Groundhogese,” which the president of the Inner Circle, Phil’s caretakers, can understand. Groundhog Day might seem like a lighthearted tradition, but it’s a charming reminder of how folklore and community celebrations continue to captivate us, bringing together fun, culture, and a bit of weather prognostication. Did You Know?
OFFSHORE REAL ESTATE If you own real estate in another country, knowing how it is governed within your estate plan is important. These investments are handled by the laws of that country, which means your U.S.-based estate plan does not help unless you are eligible to sign an international will. An international will allows your estate to manage international properties as long as the country is part of the Washington Convention. This convention is part of an effort to standardize the requirements for a will that is legally valid and accepted between countries. RELY ON EXPERIENCED TAX AND ESTATE PLANNING ATTORNEYS Despite the advantages of Revocable Living Trusts in the U.S., they may not apply to your real estate or offshore accounts in foreign countries — but you may still have options (for example, with an international will). Furthermore, the taxation of those assets can be tricky during your life. On top of that, these accounts still need to be included in the total estate tax calculation in the U.S. It’s vital to understand the structure and tax implications within your estate plan when dealing with foreign accounts and real estate. The team at Dahl Law Group is well-equipped to offer legal guidance in planning and safeguarding your offshore accounts. For personalized advice and legal support in managing your offshore accounts within your estate plan, contact the Dahl Law Group.
Holding wealth in an offshore account is often perceived as an illicit practice to hide money or avoid taxes. However, this is a common misconception. Many individuals legally hold financial interests abroad. But how do these accounts and assets transfer to beneficiaries at your time of death or incapacitation? Offshore accounts require care and attention in your estate plan to protect the assets and avoid taxes and penalties that otherwise diminish the value of your estate. DOCUMENTATION IS KEY Executors of your estate, particularly those based solely in the United States, lack the responsibility or authority to access offshore accounts. This creates the risk of losing those assets entirely when you die. Regular documentation of your offshore assets and providing detailed access information to trusted individuals are crucial. Designating someone with residency or citizenship in the country of the account as a trustee or co-owner can mitigate the risk of asset loss. KNOW FOREIGN LAWS (OR HIRE SOMEONE WHO DOES) Each country has its own set of regulations governing offshore accounts (or, in the case of the country in question, accounts held within their territories). Questions such as the country’s policies on U.S. citizens accessing and inheriting non- U.S. accounts, the validity of a Power of Attorney over these assets, and the recognition of survivorship clauses need to be addressed. It’s essential to understand and comply with these laws or hire a trustee or financial advisor who does.
Do you have a friend who needs our help? When you’re done reading, give them this newsletter and recommend they scan our QR code. We can help them solve their tax, business, or estate planning problems before things get worse.
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Strategic Tax Planning in Business Acquisitions Asset Sales vs Stock Sales
TAX CONSIDERATIONS IN A STOCK DEAL A stock purchase is a complete purchase of a company, including all the assets and liabilities. The selling shareholders experience capital gain or loss based on the difference between the basis of the stock (not the assets) and the sale price. Long-term capital gains on stocks held for the minimum period (one year) are taxed lower than ordinary income. This distinction is key for achieving the utmost tax efficiency in a stock sale or purchase. A notable strategy in stock purchases, especially for S corporations, is treating the acquisition as an asset purchase for federal income tax purposes. Under Section 338(h)(10) of the Internal Revenue Code, this election allows the transaction to be treated as a stock purchase for corporate law purposes while benefiting from asset sale tax treatment for federal taxes. As mentioned above, this usually allows a buyer to benefit from the amortization, barring specific “look through” provisions in some states or foreign territories. Sellers generally find the tax outcomes favorable in stock deals, as these transactions typically result in capital gains or losses. BENEFITS UNDER THE TAX CUTS AND JOBS ACT The Tax Cuts and Jobs Act (TCJA) of 2017 significantly impacted tax strategies in asset purchases. It reduced the top corporate tax rate from 35% to 21%, making corporate-level tax in asset purchases more favorable. Additionally, the TCJA expanded the bonus depreciation rules, increasing the range of transactions that can be structured tax-efficiently as asset purchases.
When businesses engage in the acquisition of another entity, it’s crucial to take the tax implications into account. Those implications look different depending on whether the deal is a stock sale or an asset sale, and working with an experienced firm that understands both tax and business law is an invaluable asset in the acquisition process. TAX CONSIDERATIONS IN AN ASSET DEAL An asset purchase occurs when a buyer purchases some or all of the assets owned by a company but not the company itself. In an asset purchase, the buyer can use the tax basis of the acquired assets, including goodwill, as the purchase price. This adjustment allows tax deductions for the amortization of those assets over the useful lives of the assets, offering tax efficiency. However, it’s essential to note that tangible assets, such as inventory, will likely trigger a tax on the purchaser. Additionally, some states levy a general intangibles tax on transfers. For the seller, depreciation recapture comes into play when an asset is sold at a price higher than its tax basis as adjusted by previously claimed depreciation.
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INTERVIEW! Scan this QR code to request a FREE copy of our Legacy Interview questions. With
STATE-SPECIFIC CONSIDERATIONS It’s also important to consider state-specific taxes. For
them in hand, you can create a precious gift for your children, grandchildren, and other loved ones that will preserve your memory for decades to come.
instance, California imposes a 2.5% gain at the entity level for S corporations. Such nuances can influence the decision to make a 338(h)(10) election, especially in scenarios where the sale might result in a corporate-level loss. NEGOTIATING TRANSACTION TAXES A critical aspect of acquisition negotiations is deciding who is responsible for various taxes associated with the deal. While one party is legally required to pay the tax, either party can negotiate additional payments or concessions to offset the tax burden. Whether it’s an asset or stock purchase, each approach has distinct tax consequences that can significantly affect the overall financial outcome. Contact the team at Dahl Law Group for a firm with a wealth of experience navigating these complex deals and ensuring that clients can make informed, tax-efficient decisions in business acquisitions.
“Holding on is believing that there’s only a past; letting go is knowing that there’s a future.” –Daphne Rose Kingma
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INSIDE What’s
2. 1. Elliot Celebrates 3 Years at Dahl Law Group Fun Facts Surrounding Groundhog Day
Offshore Accounts and Your Estate Plan
4. 3.
Tax Considerations for Asset Sales vs. Stock Sales
Childhood Development Through Travel
Young Explorers How Travel Shapes Child Development Introducing children to domestic and international travel at a young age can significantly aid their development. Surprisingly, traveling with children as young as 6 months old can be remarkably beneficial. It instills a sense of curiosity and openness to new experiences. In addition, child development research shows that strong foundation for them to grow into well-rounded, globally aware adults. LANGUAGE DEVELOPMENT Beyond cultural understanding, travel significantly impacts linguistic they don’t remember every detail, the skills and insights gained during their formative years stay with them for life. INCORPORATING TRAVEL INTO EARLY LEARNING Implementing travel as a part of a
development. Associate Professor Erika Levy from Columbia University notes that surrounding children with various language sounds helps maintain their ability to distinguish and learn different languages. This exposure is particularly beneficial in the first few years of life when brain development is most rapid. EXPERIENCES THAT SHAPE PERSPECTIVES The experiences children gain from travel go beyond just forming memories. They shape their perspectives and understanding of the world. Every element of the trip contributes to a child’s learning, from trying new foods to adapting to different climates and customs. Even if
child’s early learning can be as simple as exploring local neighborhoods, engaging with different cultures, or creating travel- related traditions. These experiences don’t have to be grand — even small trips offer valuable learning opportunities. Travel is more than just a leisure activity for children; it is an invaluable educational tool. By embracing the joys of travel, parents can help develop their children’s cognitive, linguistic, and emotional skills. Whether a local adventure or an international expedition, every journey becomes a stepping stone in a child’s path to a richer, more interconnected future.
travel broadens a child’s horizons and plays a pivotal role in their cognitive and emotional growth in several ways.
CULTURAL EMPATHY AND ADAPTABILITY
Travel exposes young minds to different cultures and environments, fostering empathy and adaptability. A global education specialist, Dr. Robin Hancock, explains that children who travel from an early age learn to appreciate cultural differences and are more likely to develop meaningful relationships across diverse backgrounds. This early exposure lays a
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