June 2011

Blackman Kallick’s Family Office Expert Advises Investors to Act Quickly as “Tax Shangri-La” End Nears

Press Release – For Immediate Release
June 20, 2011

(Chicago, IL) – Mark J. Blumenthal, Chairman of Blackman Kallick’s Family Office Services Group, spoke to family business owners and private investors at the Family Office Forum in Chicago on June 3, 2011. His presentation, entitled “Good-bye Tax Shangri-La,” was a call to action for wealthy families and private business owners to consider the income tax and wealth transfer tax savings opportunities afforded by the following:

• the new $5,000,000 unified gift and estate rules
• the impending expiration of the 15% tax rate for dividends and long term capital gains
• the  low IRS interest rates used for gifting, and
• the unique valuations of some private and public investments.  

Blumenthal stressed that the tax and investor-friendly “convergence of these four factors could change at any time” and that “the clock is ticking” regarding the end of the current tax breaks on December 31, 2012. 

While many of the family offices and wealthy investors that attended the conference indicated that they were taking advantage of these incentives, Blumenthal warned others that it is “…like the wild, wild west. If you are not buying, selling, or gifting something, you will look back on this period in history and say, I was scared and I missed it!"   

In the near future, wealthy investors should be carefully anticipating the specific impact of any pending tax rate changes and changes to tax preference items, as these changes will affect distinct businesses and ownership structures very differently.

Blumenthal stated, “One thing is certain, there will be winners and losers when Congress changes tax rates and preference items.  For example, the owner of a consulting business might see his or her taxes decrease, while the next-door neighbor, who has the same income but owns a manufacturing plant, could see his or her taxes go up.”

To request a copy of Mark Blumenthal’s presentation, visit the Family Office presentations request page. 

About Blackman Kallick

Blackman Kallick’s Family Office Services Group provides a complete range of tax planning and tax preparation, internal control and operations review, and other services tailored to family offices and affluent families, nation-wide. As a firm, Blackman Kallick provides audit, tax and consulting services for privately held and public companies as well as not-for-profit organizations and high net worth individuals. 

Founded in 1962, Blackman Kallick is the 9th largest accounting and consulting firm in Chicago (Crain’s Chicago Business, October 18, 2010), employs more than 230 professionals and is a leading member of HLB International, a worldwide network of independent professional accounting firms and business advisors in 450 offices spanning 100 countries. With specialized industry practices that include Manufacturing and Distribution, Construction, Family Office, Food, Hospitality, Insurance, Not-for-Profit, Private Equity and Venture Capital, Real Estate and Healthcare Services, Blackman Kallick combines sophisticated, market-leading services with an accessible and personable approach.

 

About Mark Blumenthal

Mark Blumenthal, CPA, is a Partner and Chairman of the Family Office Service Group. He is also the Co-Chairman of the Private Equity Venture Capital group and the senior real estate tax partner of the firm. Mark serves as a strategic advisor to ultra affluent families, family offices, private equity/venture capital funds and mature private businesses. 

 

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