Most folks seem to feel that once the documents are signed their good to go. If you meet your wealth manager semi-annually, at least one of those meetings should have your CPA and attorney in attendance.Few plans will have much chance of success without periodic professional involvement.The Division will send a response within 10 business days of receipt of the bulk sale notification. Does the assignee also file form C-9600, even though none of the terms of the sales agreement changed, except for the substitution of the new purchaser? The assignee, by taking the place of the original purchaser/transferee, must now take on all of the previous party’s rights and obligations under the law, including responsibility for holding the amount of escrow in the Division’s notice to the original purchaser. If the seller is a tax-exempt or non-profit organization, including but not limited to a church/synagogue/temple/mosque, and is selling its real property and/or tangible property not in the ordinary course of business, does the purchaser have to file a C-9600 form with the Division? Other information and guidelines may be found in Technical Bulletin 60-R 81kb 51.Yes, even though the seller may be exempt from some Division taxes, it might still have tax obligations. How can the Division be contacted for further information about the Bulk Sale Law and its implementation?A bulk sale is the sale (or transfer or assignment) of an individual’s or company’s business asset/s, in whole or in part, outside of the ordinary course of business. A business asset is any asset that generates income or loss. Who notifies the Division of Taxation of a bulk sale?(See examples below.) When a bulk sale of business assets occurs, the New Jersey Division of Taxation needs to be notified so it can collect any taxes owed. A business is any endeavor from which revenue or consideration is realized for the purpose of generating profit or loss. Business assets can include goodwill, materials, supplies, licenses, patents, copyrights, equipment, leases, merchandise, inventory, realty, or vacant land. The purchaser or the purchaser’s attorney must submit all notifications of bulk sales.
In addition, a business liquidating assets may need to make final payments of sales taxes, withholding taxes, etc. Documents can also be sent by overnight mail, Fed-Ex, or UPS to: The Division of Taxation Attn: Bulk Sale Section. The purchaser must have proof that the notice was delivered to 50 Barrack Street in Trenton. The Division received notification less than 10 business days before closing. It is still the purchaser’s responsibility to hold the escrow as prescribed by the bulk sale section. The escrow may be reduced if the Division caseworker receives additional information that affects the escrow amount. If taxes are not ordinarily due until the following year, are the amounts due in that year included in the escrow amount? The escrow will be calculated to include all taxes that are due and those that would become due as a consequence of the sale. Forms submitted before the receipt of the Bulk Sale Notification will be discarded. If the realty that is being sold, transferred or assigned is used for business/income purposes, it is subject to bulk sale notification rules. If a property goes through a formal foreclosure process, a Sheriff’s Deed (or Marshal’s Deed) is used to transfer assets to a new owner without encumbrances.
The latest salvo will be regulations negating discounts on FLPs/LLCs (perhaps only on those not operating an active business) what should you be doing? If discounts are nixed and your estate is under the federal exemption amount, you might do a happy jig! Because the IRS will have done most wealthy, but not ultra-wealthy, taxpayers a favor.
You may have created an FLP or LLC to achieve valuation discounts.
For example, one technique is to give someone a general power of appointment over a trust.
That means they will be given the right to designate who will receive the assets of the trust. While layers of limitations can be placed on such powers they do bring increased layers of complexity.
However, the individual or entity that benefits from any credits must obtain a Business Assistance and Incentive Clearance Certificate from the Division of Taxation before the sale, transfer, or assignment of any credits.