Relief From Required Retirement Distributions
by Paula A. Calimafde and Arnold B. Sherman, Principals
The tax code requires that “minimum distributions” be taken from qualified defined contribution retirement plans, IRAs and annuities. In general, a required minimum distribution (RMD) is the smallest amount that must be withdrawn each year by the plan participant or IRA owner.
Changes in MD Estate Planning Laws Affect Individuals
by Deborah A. Cohn, Principal
Several significant changes enacted this year by the Maryland legislature may affect your estate planning. Perhaps the most important development, however, is a non-change. Maryland did not increase its separate estate tax exemption. It is currently $1 million and remains much lower than the Federal exemption, which this year increased to $3.5 million.
Retirement Plans for Your Company
A profit sharing plan is the most flexible qualified retirement plan an employer can offer to its employees. Contributions are discretionary, and each year the employer can decide whether to make a contribution and, within certain parameters, in what amount. The most simple profit sharing plan allocates contributions among participants pro-rata, based on compensation. Using this “plain vanilla” contribution model, if owners or key employees of a business wanted to have a contribution of 20% of pay, then all other participants must also receive contributions equal to that same percentage.
Real Estate – Leasing Office Space
By Diane A. Fox, Principal
If you are a tenant who will be leasing office space for your business, here are a few tips you need to know.
The Broker. Hire a good commercial broker familiar with office leases. Your broker will know all the ins and outs of leasing office space, is familiar with office rents in your location, and will know if you are getting a good deal or at least a deal which is fair and reasonable. A good commercial broker is worth his (or her) weight in gold. You won’t be sorry.
The Lawyer. Once you have reached a deal with the landlord, hire an attorney experienced in office leases to read the lease and tell you what can and cannot be negotiated. The landlord’s form of lease will be chock full of what he calls “standard” clauses, but some of the “standard” clauses can do you some serious damage if you don’t know what to look for. The “small print” in a lease can kill you.
Here are a few things the lawyer should look out for:
Real Estate – Use of IDOTS
by Arthur H. Blitz, Principal
In Maryland for the refinance of commercial properties, the use of an IDOT (Indemnity Deed of Trust) may save thousand of dollars in recording taxes — in this case we saved about $369,000.
Consider these facts. In April, 2009, the lender issued to Owner LLC a loan commitment for a loan of $45,000,000 for the refinance of the Owner’s office building complex in Maryland. The loan was to be secured by a deed of trust against the Owner’s office building complex. Had the loan not been re-structured, the state recordation tax (sometimes known as “state stamps”) would be $369,000. To avoid this tax, the loan was re-structured. The re-structure worked and the tax was avoided. How did we do it? Here’s how.