Connelly; Profits Interest; Basis Shifting; Non-Compete

Webinar

This course is drawn from Steve Gorin’s 2nd quarter 2024 newsletter. 

Connelly held that life-insurance proceeds, which were used to fund a redemption agreement that violated Code § 2703, were considered in valuing the business.  Between that and Huffman (discussed last quarter), avoiding a life insurance-funded redemption agreement tends to be advisable when Code § 2703 might apply.  Steve will discuss those issues and how to use one or more life insurance LLCs to fund a cross-purchase agreement. 

ES NPA Holding, LLC v. Commissioner, T.C. Memo. 2023-55, approved nontaxable issuance of a profits interest. Steve will discuss issuing profits interest to incoming partners and how that differs from changing profits interests allocations to existing partners.  On a totally separate note, the government is attacking basis shifting transactions; and our presenter will review its concerns and its efforts to place short deadlines on reporting even routine, nonabusive basis adjustments. 

Finally, Steve will discuss the FTC’s efforts to ban non-compete agreements.  Although by August 30, 2024 the FTC may very well be prevented from enforcing them, September 4. 2024 is the deadline the FTC set for entering into certain agreements, so you may want to be prepared to take fast action in case the FTC’s actions survives, in whole or in part.  Steve will also discuss what non-compete agreements the FTC is not trying to attack and other ways a business can protect its intellectual property that non-competes might otherwise have protected.

CLE
The live presentation of this webinar was approved for 1.5 hours of general CLE credit in California, Illinois, and Texas; 1.8 hours of general CLE credit in Missouri; and 1.5 hours of professional practice CLE credit in New York. Please visit the CLE Overview page to see how the CLE credit for this recorded webinar can be applied in CA, IL, MO, NY, & TX. 

If you are interested in receiving CA, IL, MO, NY, or TX CLE credit for watching the recorded presentation, you must register for the program by clicking here. If you are not interested in receiving CLE credit, you can watch the presentation by clicking the play button on the video.

Participants will only be emailed a Certificate of Attendance if the webinar is viewed in its entirety. If you were unable to view the webinar in its entirety, please contact webinarinquiries@thompsoncoburn.com to see if you are eligible to receive partial credit. 

If you do not receive your Certificate of Completion, please e-mail webinarinquiries@thompsoncoburn.com. 

Presenters:
Steve Gorin

For technical materials supporting the slides, please see Steve's newsletter.