Of Interest
CLEVER ESTATE PLANNING FOR THE CLOSELY-HELD BUSINESS: RECAPITALIZATION AND FREEZE IN VALUE CAN SAVE SIGNIFICANT ESTATE TAXES
Even in bad market times, closely-held businesses continue to see growth. That growth is a double-edged sword. On the one hand, the partnership or stock ownership becomes more valuable – but, at the same time – the more valuable the stock at the time of the owner’s death, the greater the tax burden on the owner’s estate. To avoid this problem, consider recapitalizing—specifically, converting some of your corporation’s common stock into preferred stock. Recapitalization is the restru...
Didn’t receive your PPP funding? There is another option.
For businesses that didn’t receive funding under the Paycheck Protection Program, Congress has approved the Employee Retention Credit to help them pull through the economic impacts of COVID-19. Under the Coronavirus, Relief, and Economic Security Act (“the CARES Act”), qualifying businesses can receive this tax credit worth as much as $5,000 per employee that they continue to pay throughout the 2020 calendar year.To qualify for the program, businesses just need to demonstrate either that ...
THE DC AREA’S “TRI-STATE LENDING CONUNDRUM”: RECOMMENDATIONS ON PAPERING A GOOD LOAN THAT “TOUCHES” DC/MD/VA
A senior lending officer once remarked, “the best loans are those that are well-underwritten and better papered.” Lending in our tri-jurisdiction area of DC, Maryland and Virginia is challenging today. Lenders must not only underwrite the loan and the borrower/guarantors for today, but also look forward during the term of the loan to protect the loan for default, trouble or calamity. Beyond that, it gets even trickier in our area. The lender may be organized in one state and fund...
The Federal Opportunity Zone Program – A New Program Worth Knowing!
You may have heard about the Opportunity Zone Program -- included as a part of the Tax Cuts and Jobs Act of 2017. The Program was designed as a way to revitalize economically distressed communities by offering significant tax breaks to investors who invest in the development of these communities. Although there has been some debate over whether this program will succeed in actually revitalizing these communities, all politics aside, what does the Opportunity Zone Program m...
SIGNIFICANT CHANGES TO TENANT’S RIGHTS FOR SINGLE FAMILY HOMES!
The Tenant Opportunity to Purchase Act of 1980 (“TOPA”), as amended, gives District of Columbia residential tenants the opportunity to purchase and a right of first refusal to match a third party contract when the owner of their rental accommodation sells, demolishes, or discontinues renting the unit. On April 10, 2018, the District of Columbia City Council amended this act to add several exemptions from coverage. With a few exceptions, single family rental units, single family rental units...
Warning to DC Landlords: You may think you are exempt from rent control! ARE YOU?
In the District of Columbia, the DHCD Rental Accommodations Division (“RAD”) administers the District’s Rent Control Act. All housing accommodations must be registered with RAD, except dormitories, hospitals, units operated by foreign governments, and a few others. The Law places all of the District’s housing stock under rent control UNLESS exempted and, in order to be exempted, one must follow certain regulations and filing procedures in order to qualify for exemption. In other word...
“Market Rate” in Options May Cause Option to be Unenforceable
Option years are written solely for the benefit of a tenant and options add significant value to an ongoing business. Recently, some Court have given landlords an “out” and allowed landlords to cancel a lease renewal term where the option is based upon “market rate” rent. While it would be expected that a Court could be left with the final say-so as that is “market rate,” many Courts have elected not to do so. To be on the safe-side, in order for the option to be enforceable, tenant...
Citation for Prayer
"Vijay Singh have lived for more than 20 years on Brooklawn Terrace in Chevy Chase. Born in Nepal, he is a practicing Hindu. Twice a day he prays on his backyard porch with incense. Actually, make that past tense." Mr. Singh was cited by Montgomery County officials for emitting an odor into the atmosphere that allegedly created air pollution for neighbors. However, by retaining WEISS LLP, Mr. Singh was able to have his citation reversed.
Construction on a Home Even if Rented Out? Don’t Get STUNG
Under local laws, any work to convert, alter, modernize or repair a residence (single family or condominium) is a “home improvement” – with all the laws, licensing requirements and regulations getting triggered as a “home improvement.” Additionally, it doesn’t matter who owns the property, nor does it matter if it is rented out or owned as an investment property. There are regulations that permit an owner a three-day to rescind, certain disclosures and notices, and registration/licen...
Maryland Construction General Contractors Watch Out! You Are Soon to be Liable for Subcontractors’ Wage and Hour Violations
Beginning October 1, 2018, Maryland’s already stiff wage and hour penalties will be extended to cover construction general contractors whose subcontractors are found in violation of Maryland wage and hour laws, making the general contractor jointly and severally liable for all violations by both direct subcontractors and indirect, lower-tiered subcontractors. Any project that involves “construction services” in Maryland is an area of risk – meaning any “building, reconstructing, improv...