Family Business Advocates

A RESOURCE FOR FAMILY BUSINESS OWNERS AND ADVISORS

Are you getting to the point in your life where you are thinking about retiring (or is the next generation dropping not-so-subtle hints)? If so, I have a recommendation. Last year my friend and colleague Rob Couch published So You Think You Want to Retire – Now What? I recommend it to you. Rob has a wonderful sense of humor that shines throughout the book. His subject matter is serious but his delivery is anything…
As noted in Part 1 of this series, owners of private aircraft will often want to share ownership and/or use of their aircraft with others. In most cases the motivation for sharing ownership and/or use of an aircraft is to defray the significant costs and expenses associated with the purchase and maintenance of the aircraft, purchasing or leasing a hanger for storage of the aircraft, employing a pilot or pilots and other crew to operate…
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the “2017 Act”) which, among other items, made several changes to the federal wealth transfer tax system with respect to transfers occurring during calendar years 2018 through 2025. Here we are, another year older, another year wiser, and with a full year of living under the 2017 Act under our belts. So, what have we learned? By way of quick…
As we enter what is expected to be the peak decade of baby boomer retirement, the recent 2018 Insights into Family-Owned Business published by the Birmingham Business Journal focused on transitions happening, and expected to happen, in family-owned businesses.  The most significant expectation appears to be that many family-owned firms will be sold during this wave of baby boomer retirement.  This is not an unreasonable forecast based on the number of family-owned businesses in the…
One impact of the Tax Cuts and Jobs Act (TCJA), signed in to law at the end of 2017, was the doubling of the standard deduction. The TCJA increased the standard deduction to $24,000 for taxpayers filing jointly or for a surviving spouse, $18,000 for a head of household and $12,000 for single filers. As a result, many taxpayers who previously found it advantageous to itemize their deductions on their federal income tax returns no longer do.…
As noted in Part 1 of this series, Federal Aviation Administration (FAA) rules govern the ownership, operation and use of private aircraft. Most private aircraft are operated under Part 91 or Part 135 of the Federal Aviation Regulations. For reasons discussed below, it is imperative for the family business owner of a private aircraft to determine whether the Part 91 or Part 135 rules govern the owner’s operation of the aircraft and to strictly comply…
The First Amendment broadly protects political speech, and every citizen has a fundamental right to participate in the political process, including making contributions to political candidates and political organizations. However, like any fundamental right, political speech has its limits. Political contributions are heavily regulated by governments and public perception, and you and your family business should consider the following before making a political contribution. 1. It is better to ask for permission than forgiveness. Campaign…
As discussed in Part 1 of this series, the first step in purchasing a private aircraft typically involves the preparation of a letter of intent (LOI) or other nonbinding offer for the purchase of the aircraft. The LOI sets forth the principal terms for the purchase and sale of the aircraft, including: a detailed description of the aircraft and its systems (customarily an exhibit to the LOI); the purchase price and deposit; the identity of…
Access to private aircraft can provide productivity and other benefits for a family-operated business and improve the quality of life for the business owner and his family. However, purchasing, owning and operating a private aircraft requires careful consideration of a number of business, legal, tax and regulatory issues. These issues make it imperative that a small business owner consult with legal and tax counsel to ensure that the owner’s interests are properly represented in the…
I recently met with my friend Matthew Whitaker, the owner of gkhouses, to learn more about the advisory board he established in 2017. With over 1,500 homes currently under management, gkhouses is a regional property management firm for single family homes and is the largest property management firm in Birmingham, with additional offices in Nashville, Chattanooga and Little Rock. Frederic: Why did you decide to form an advisory board? Matthew: I was actually “advised”…