You thus lose both ownership and control over the trust assets.That’s why an irrevocable intervivos trust is seldom used for protection − though such trusts can be useful for estate planning.revocable trust will not protect your assets because your creditors can step into your shoes and revoke your trust.Any delinquent/deficient taxes owed by the seller also may be collected. How do I report a bulk sale to the State of New Jersey? Will the purchaser be protected from potential tax obligations of the seller? If the closing occurs before the 10 business-day period and the Division has not assigned an escrow to the purchaser, it is a bulk sale violation and the purchaser will be held responsible for the tax obligation of the seller. What if a purchaser fails to satisfy the notice requirements? It will be between the purchaser and seller to decide who will provide the additional funds at the time of closing to satisfy the escrow. The seller may elect to give the form to the purchaser to submit with the C-9600. Where can the seller obtain the Asset Transfer Tax Declaration form? A bank approval letter should be submitted with the C-9600 form. There is no need to submit a bulk sale notification. Is a deed in lieu of foreclosure considered a bulk sale?
The purpose of the Bulk Sale Statute is to protect a purchaser from inheriting any tax debt from a seller of business assets.We do not complicate things but give you the necessary knowledge to be able to take the appropriate business decisions. PCC provides small and medium sized organisations with a range of services assisting them to achieve their business and non-business goals.PCC refers to a civil partnership, constituted between limited liability companies, and its affiliated operating entities; PC Corporate Services Limited, PCC Advisors Limited and Patrick Camilleri FIA CPA.Business assets are any assets that generate income or loss and may include: 2. A filing by the seller or a third party does not protect the purchaser from being held responsible for potential tax obligations of the seller. How does the purchaser properly notify the Division of a bulk sale? Why is a copy of a signed contract of sale, transfer or assignment required as part of the C-9600 form notice?What taxes are the Division of Taxation trying to collect through the notification of a Bulk Sale? The Division of Taxation considers a notification to be proper if the purchaser provides a completed form C9600 54kb. The Division of Taxation needs the terms of any sale or transfer agreement to determine and collect any taxes that might be owed as a result of the transaction. Can the purchaser submit the notice without the seller’s New Jersey Tax ID number? This is the document (designated Form TTD 39kb) the seller submits to the Division with information on the gain on the sale of business assets. When should an Asset Transfer Tax Declaration form be submitted?Personal tax services are also offered to our clients and representations with the tax authorities are made on their behalf.