Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

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Wednesday, May 14, 2014

Self-Dealing Can Result in a 200% Tax

TaxMany financial transactions between disqualified individuals and a private foundation constitute self-dealing, and self-dealing will cost both parties big in taxes. Each act of self-dealing can result in a 10% tax for the disqualified person and 5% up to $20,000 for the foundation manager. If the taxable period passes without correction of the self-dealing, then an additional tax is imposed on the disqualified person of 200% and on the foundation manager of 50% up to $20,000.

See Stephanie Moll & Keith Kehrer, A 200% Tax on Self-Dealing? And People Think the Estate Tax is High!, Bryan Cave, May 12, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2014/05/self-dealing-can-result-in-a-200-tax.html

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