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This episode focuses on tax and asset protection planning as OJM Group partner and CPA Carole Foos joins David to highlight tax planning opportunities as we welcome in 2023. David then drills down into a few important developments in asset protection planning.

Carole begins with some highlights on new tax developments and opportunities, including energy-efficient home and business credits and clean vehicle credits.  Carole offers reasons why the new increased IRS interest rate (effective January 1) should impact physicians when it comes to estimated tax payments.  Finally, Carole covers the importance of managing investment gains and losses and why this is not just a 4th quarter activity.

David examines the trend of state exemption statutes improving the protection of assets, highlighting the California homestead exemption. He turns his attention to some important legal cases for asset protection planning.  The first case involves a Delaware LLC, which many physicians have utilized for decades. David explains why this case puts some risk around relying on LLCs in Delaware for protection and contrasts the problematic Delaware case with two Ohio cases. which strengthen the protections provided by Ohio LLCs.

David concludes with an IRS-related case involving a business leasing its real estate from a related LLC, and explains how that case demonstrates the importance of following legal formalities.

What You’ll Learn:

  • The Inflation Reduction Act rules regarding tax credits for energy efficient improvements for the home and at a business
  • The Act’s rules regarding clean vehicles
  • The new IRS interest rate for 2023 and its implications for a physician’s estimated tax planning
  • The importance of investment gain/loss planning throughout the calendar year
  • California’s new homestead exemption
  • The importance of the Delaware legal case Manichaean Capital, LLC v. Exela Technologies, Inc. in asset protection planning and for physicians utilizing Delaware LLCs
  • How the Wick v. Ach and Berns Custom Homes v. Johnson cases strengthen LLC protections in Ohio, and how the above three cases clearly demonstrate that jurisdiction matters
  • Why the TBS Properties LLC v. United States case shows formalities are crucial if physicians want to enjoy the protections of LLCs and other legal entities