Personal finance perspectives

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Personal finance perspectives

  1. 1. Personal finance perspectives Personal Financial Services Volume 1 | 2010 IRS creates global tax gap, which, based on the latest IRS estimates from 2005, is high wealth industry approximately $345 billion. Of that In this issue group Increased $345 billion tax gap, more than 50% relates to underreporting on scrutiny and audit- individual income tax returns. The IRS creates global high wealth industry group — Increased scrutiny and audit- focus on high-net Global High Wealth Industry Group was created to lower the individual focus on high-net worth individuals worth individuals tax gap by targeting taxpayers the IRS deems most likely to have financial Federal estate tax limbo in 2010 — In a report delivered to the AICPA and investment arrangements Potential planning opportunities and last October, IRS Commissioner that could conceal tax avoidance pitfalls Schulman stated that while many strategies. Planning to sell your residence in 2010? high wealth individuals make use — Calculation changes impact real of sophisticated financial, business “Initially, the Global High Wealth estate capital gains and investment arrangements with Industry Group will divert its complicated legal structures and resources toward the wealthiest of Recent court case addresses LLC tax consequences for valid business taxpayers: primarily individuals with transfer taxes — LLCs carry the same reasons, other structures could be wealth transfer advantages as more tens of millions of dollars of income attempting to mask aggressive tax or assets,” said Jason Uetrecht, traditional limited partnerships strategies. In alignment with this PricewaterhouseCoopers Personal belief, the IRS created the Global Financial Services Director. “This is High Wealth Industry Group, a new an obvious starting point for the IRS compliance unit focused on high due to the complex nature of these Looking for additional resources on wealth individuals and their related a financial topic? Visit our website tax returns and the large volume at www.pwc.com/pfs to explore the entities. of information involved. The IRS information available or to locate This is part of a continual effort assumes that these individuals are the PricewaterhouseCoopers office by the IRS over the past several more likely to have significant tax- nearest you. related legal structures to investigate.” years to try and reduce the federal
  2. 2. “Also, because of the volume and of business entities, including • Income tax returns with significant dollars involved with a typical high trusts, real estate investments, decreases in interest income wealth individual’s tax return, any royalty and licensing agreements, from year to year, to question if mistakes that are discovered by the revenue-based arrangements, there may have been any gifts not IRS are more likely to result in high private foundations, privately- reported. dollar amounts of tax modification,” held companies and partnerships. • Gift tax returns with Grantor said Uetrecht. There will also be a focus on an Retained Annuity Trusts (GRATs). individual’s international activities, This is the IRS’s latest step in including international sourcing of “The IRS has found several targeting high-net worth individuals. income and offshore structures and reoccurring issues with GRATs not Previously, examinations increased bank accounts. following provisions of GRAT trust nearly 25% for individuals with agreements,” said Uetrecht. “This income over $200,000 from 2007 The group will identify all of the includes GRATs which are not funded to 2008. Similarly, the IRS has entities related to a high wealth properly, that do not make payments started to initiate more audits from individual and then ensure the to the grantor and those that sell the examinations of related returns, such proper income and deduction asset/business 6-9 months after the as partnerships and trusts. The items are being accounted for at transfer to the GRAT for a nominal Global High Wealth Industry Group both the entity and individual level. dollar amount more than the original takes that approach one step further “The IRS feels that looking at all of transfer to the GRAT. Any of these by evaluating every related return these entities from a holistic point factors could raise questions with in a family unit and examining the of view will enable their agents to the original valuation of the gift.” transactions between them. develop a better understanding of the structure’s goals and objectives,” Preparing for Increased The global high wealth industry said Uetrecht. “It will likewise enable IRS scrutiny group process them to better assess the risk that certain tax structures pose to tax High-net worth individuals, Since these enterprises are complex compliance.” particularly individuals involved and may include many different in many different types of tax types of tax structures, the Global structures, can expect closer High Wealth Industry Group consists Estate and gift tax scrutiny scrutiny from the IRS in the coming of specialists and experienced Beyond income taxes, IRS efforts will years. “In order to prepare for the agents, with plans to further grow also focus on the estate and gift tax increase in audits, individuals in this the group in years to come by system. This includes: group should focus on compliance adding additional specialists. and understanding what the IRS • Examining local land real estate will look for,” said Uetrecht. “It’s The general process followed by the records trying to discover important that taxpayers who may Global High Wealth Industry Group unreported gifts that, even if not be subject to these types of audits will be to take an individual and taxable, may use up part of the understand any areas of exposure examine his or her entire network unified credit. they may have and plan accordingly.” The group will identify all of the entities For questions or additional information on this topic contact related to a high wealth individual and then ensure the proper income and deduction Jason Uetrecht Personal Financial Services Director items are being accounted for at both the 314-206-8228 jason.uetrecht@us.pwc.com entity and individual level. Personal finance perspectives Volume 1 | 2010 PricewaterhouseCoopers 2
  3. 3. Federal estate tax for decedents dying and generation- skipping transfers made during 2010. 2009 Legislation Limbo in 2010 (The GST tax is a separate tax that Last year, President Barack Obama proposed making 2009 estate, gift Potential planning applies, in addition to any estate or gift tax, to transfers to grandchildren and GST tax law permanent for opportunities and or future generations—or trusts for 2010 and beyond. Consistent with this Administration proposal, the pitfalls their benefit—and is imposed at the highest estate tax rate. It is intended US House of Representatives on to replace the estate tax that is December 3, 2009, passed Contrary to the expectations (and H.R. 4154, the Permanent Estate essentially avoided at the 2nd/skipped hopes) of most estate planning Tax Relief for Families, Farmers and generation.) The gift tax remains in attorneys and tax advisors, the Small Businesses Act of 2009. The effect during 2010, with a $1 million federal estate and generation- bill provides for a top federal estate exemption amount and a gift tax rate skipping transfer (GST) taxes were tax rate of 45% with a $3.5 million of 35% (down from 45% in 2009). allowed to expire at the end of 2009 per-person exemption. The House due to Congressional inaction. Also in 2010, the “stepped-up” bill also makes permanent 2009 gift Democratic leaders’ attempts to basis rules for property acquired and GST tax law. extend 2009 estate and GST tax from a decedent are repealed and law were stymied by the year-end a modified carryover basis regime This bill was projected to reduce Senate focus on passing health care takes effect. Under these rules, federal revenues by approximately reform legislation and disagreements each decedent’s estate generally is $234 billion over 10 years; however, among lawmakers over estate permitted to increase the basis of its the estimated cost is not offset and tax policy and other issues. Key assets by $1.3 million. In addition, therefore would increase federal lawmakers have suggested the the basis of property transferred to a budget deficits. To address some estate and GST taxes may be surviving spouse may be increased House lawmakers’ concerns about reinstated retroactively; however, by an additional $3 million. When increasing budget deficits, Democratic a retroactive tax increase may property acquired from a decedent leaders included a statutory “pay-as- be politically difficult, especially is sold, it generally will be subject to you-go” (PAYGO) budget requirement in an election year. In addition, capital gains tax rates. to fully offset most new tax cuts or constitutional challenges are spending. The provision is opposed in possible. As a result, there is The 2001 tax law changes are the US Senate as it would not apply to considerable uncertainty about scheduled to “sunset” after 2010 permanent extension of 2009 estate 2010 estate, gift and GST tax and will be replaced by pre-2001 tax law and certain other individual tax law. However, potential planning estate, gift and GST tax law unless reliefs scheduled to expire after 2010. opportunities may exist during this Congress acts otherwise. Under this limited time window, provided the system, a unified graduated rate In addition, the House bill faced taxpayer is willing to accept the schedule with a top rate of 55% opposition from Senate Republicans risk of the uncertainty of future and a unified estate, gift and GST and some Democratic Senators, who legislation and the potential adverse exemption amount of $1 million will favored either repeal or a lower rate tax consequences that could result. apply for purposes of determining the and higher exemption. In particular, tax on cumulative taxable transfers Senator Blanche Lincoln (D-AR) last made by a taxpayer through lifetime year proposed a 35% maximum Current law estate tax rate and $5 million per- gift or bequest. Also after 2010, the As a result of tax law changes modified carryover basis regime will person exemption amount. Given the enacted under the 2001 Tax Act, the be repealed and stepped-up basis lack of consensus on a permanent estate and GST taxes are repealed will return. solution, the Senate Democratic Personal finance perspectives Volume 1 | 2010 PricewaterhouseCoopers 3
  4. 4. leaders, in the waning days of Some observers point to a 1994 flexible in response to any potential the 2009 legislative session, tried Supreme Court decision permitting future law changes. The following are unsuccessfully to pass a short-term a retroactive estate tax law change. some general issues to consider. extension of 2009 estate tax law to give Congress additional time to work Congress could end up passing Review current wills and revocable on a longer-term solution. Because legislation that represents a middle trusts. In order to avoid any federal of time constraints and procedural ground between complete repeal and estate tax at the first spouse’s death, rules, the consent of all Senators retroactive renewal. In addition, any most wills and revocable trusts for was required to pass a short-term 2010 compromise may be combined married persons direct estate assets extension and Senate Republican with legislation to prevent a return in excess of a decedent’s remaining leaders objected. to pre-2001 estate, gift and GST tax estate tax exemption to a marital policy in 2011 and beyond. deduction share, which passes to the surviving spouse (either outright Outlook or to a marital trust). The exemption Potential planning opportunities amount then passes either outright The chairmen of the House and Senate tax-writing committees have and pitfalls to the decedent’s children, or more said they intend to pass legislation Unfortunately, no one has a crystal typically to a so-called “credit shelter to extend 2009 estate, gift and ball to predict exactly what changes trust” of which the surviving spouse GST tax law for 2010, possibly on Congress will make to the current may or may not be a beneficiary. a retroactive basis. However, the federal estate, gift or GST tax law, The amount directed to the credit timing and outlook for passage of particularly with regard to whether shelter share is typically defined such legislation is unclear. Congress any such changes will be made by formula, such as “the largest is currently focused on completing retroactive to January 1, 2010. amount that can pass free of federal health care reform legislation. The However, for taxpayers who willing estate tax.” As no federal estate tax longer the estate and GST taxes to accept this risk of uncertainty currently exists, all estate assets remain expired, the more difficult it and the potential adverse tax under this type of formula would be may be for lawmakers to support consequences that could result, directed to the credit shelter share them retroactivity, especially for planning opportunities may exist. and no assets would be directed to Members of Congress up for re- More importantly, existing estate the marital share. This could cause election this year. If Congress planning documents should be unintended and disharmonious extends the estate and GST taxes reviewed to ensure that the overall results, particularly in cases where retroactively, it is widely anticipated intent and plan of disposition are not the credit shelter share is directed to that there will be legal action adversely affected by the change the decedent’s children from a prior challenging the constitutionality. in law, and that the documents are marriage. Similar formula provisions may be used for unmarried persons to fund charitable bequests, which Existing estate planning documents should be could also go unfunded using this type of formula if there is no federal reviewed to ensure that the overall intent and estate tax. plan of disposition are not adversely affected In addition, under the new carry over by the change in law, and that the documents basis regime, only assets passing are flexible in response to any potential future to the spouse (either outright or to a marital trust) will qualify for the law changes. Personal finance perspectives Volume 1 | 2010 PricewaterhouseCoopers 4
  5. 5. additional $3 million spousal basis of the GST tax for 2010 could be and is currently 3.0% for January adjustment. Thus, if all estate assets retroactive, such strategies could 2010). To the extent the GRAT assets pass to the credit shelter trust at result in little or no GST tax savings, appreciate more than the Section the first spouse’s death, this special while legal fees and other transaction 7520 rate, this excess amount spousal basis adjustment would be costs are incurred. passes to the remainder beneficiary lost. Moreover, for taxpayers who and generally avoids taxation in reside in or own property in states For example, assets could be the grantor’s estate. A CLAT is that have a separate state estate transferred to a lifetime “QTIP” similar to a GRAT, except that the tax (such as New York, Delaware, marital trust for the donor’s spouse, annuity is payable to charity. Under Maryland and Washington, DC), with the remainder passing to a trust pre-2010 law, it was generally not additional state estate tax may result for grandchildren at the spouse’s advisable to include grandchildren if the credit shelter trust is funded death. The gift to the grandchildren as remainder beneficiaries of a GRAT with an amount in excess of the could be defined by formula such as or CLAT because the grantor’s GST state estate tax exemption, or if a “the maximum amount that can pass exemption could not be allocated state-only “QTIP” election is not free of GST tax under applicable law” to the transfer until the end of the available for assets passing to a with any excess amount passing annuity term, when the assets may QTIP marital trust. to a trust for the children. Because have significantly appreciated. this lifetime QTIP trust is created However, if no GST tax exists when It may be that a relatively simple when there is no GST tax, there is the GRAT or CLAT is created, the codicil to one’s will or amendment a possibility that the trust could be trust could be grandfathered and to one’s revocable trust could be grandfathered and exempt from any exempt from any future GST tax. executed to cure these potential future GST tax, even if the GST tax Alternatively, it may be permissible to issues. However, because each is reinstated. In addition, the transfer allocate GST exemption to the value situation is different, individuals to the QTIP trust would not result in of the assets at the time of transfer, should consult with their estate any current gift or GST tax due to the rather than having to wait until the planning attorney or tax advisor unlimited marital deduction, provided end of the annuity term. for a thorough review. a timely QTIP election is made on the donor’s 2010 gift tax return. However, Consider making taxable gifts Consider taking advantage of the trust assets would generally be potentially subject to lower potentially tax-free GST transfers. taxable in the spouse’s estate when 35% rate. For those taxpayers With no current GST tax in 2010, it the estate tax returns in 2011. who already planned on making may be possible to make transfers taxable gifts and incurring gift tax for the benefit of grandchildren and In addition, taxpayers implementing in 2010, it may be prudent to make future generations that could be a grantor retained annuity trust such gifts earlier in the year at the exempt from any current or future (GRAT) or charitable lead annuity current lower 35% gift tax rate GST tax, while also structuring the trust (CLAT) in 2010 may wish to (vs. a higher 45% or 55% gift or transfer so that it does not result in consider including grandchildren as estate tax rate starting in 2011). It is any current gift tax. However, given remainder beneficiaries. A GRAT is possible that any reinstatement of the potential that any reinstatement an estate-freeze strategy, whereby the higher 45% gift tax rate could the grantor transfers assets to an be applied retroactively; however, if Given the current irrevocable trust in return for an annuity payable for a term of years gift tax was already expected to be incurred, there does not appear to legislative uncertainty, equal to the fair market value of the be much downside to this strategy. no one can predict property contributed, plus the IRS’s assumed rate of return (Section There is significant risk, however, in deliberately paying gift tax that the ultimate outcome. 7520 rate, which is set monthly would otherwise not have been Personal finance perspectives Volume 1 | 2010 PricewaterhouseCoopers 5
  6. 6. incurred absent the potentially lower 35% rate, given that any increase Planning to sell your said Martha Michael, a Director with PricewaterhouseCoopers Personal in the gift tax rate may be applied residence in 2010? Financial Services. “Even though retroactively. This would result in zero gift tax savings and a potentially Calculation changes this change occurred last year, it has received little coverage and we find significant gift tax due. impact real estate there remains a lot of confusion on capital gains how this impacts capital gains when selling a residence.” Conclusion Signed into law in 2008, the Housing For a limited time during 2010, it may Previously, a taxpayer could sell their and Economic Recovery Act of be desirable to consider undertaking primary residence and use the full 2008 (“HERA”) primarily served as a certain estate planning strategies exclusion—$250,000 for a single stimulus package for homeowners. designed to take advantage of the taxpayer and $500,000 for a married However, this law also included federal estate and GST tax repeal and taxpayer—for the capital gains tax on an amendment to existing tax lower 45% gift tax rate; however, these the sale of the home. The taxpayer policies for calculating capital gains strategies may come with significant could then convert another owned recognized in selling a residence—a tax risk particularly if they are home (such as a vacation home significant change in the process offered based on a “one size fits all” or rental property) into a primary that may impact those who own approach. Given the current legislative residence by meeting the residency multiple homes. uncertainty, no one can predict the requirement (living in the residence ultimate outcome. At a minimum, this two out of five years). The owner(s) This amendment (which went into a prudent time for individuals to review could then sell this second home as effect January of 2009) changes the their current estate plan, and to consult the primary residence and again could amount of profit you can exclude further with their estate planning use the entire exclusion on the sale. from the sale of your home. Under attorney or tax advisor to ensure that the new law, the profit amount is In short, all that was previously it is consistent with their goals and based on a percentage of time necessary to qualify for this objectives. during which the house was used exemption was for the taxpayer to as a primary residence. “This was own and occupy the home as a —As appeared on Forbes.com likely included in HERA in order to principal residence for an aggregate address a loophole in the system,” of two of the five years before selling. For questions or additional information on this topic contact Applying a new ratio Melinda Merk Personal Financial Services Director Under the new law, the gain exclusion is calculated based on a ratio: 703-918-6083 melinda.merk@us.pwc.com The aggregate periods of nonqualified use during the period the Andrew Prior property was owned by the taxpayer Personal Financial Services Director The period the property was owned by the taxpayer 202-414-4572 andrew.prior@us.pwc.com Personal finance perspectives Volume 1 | 2010 PricewaterhouseCoopers 6
  7. 7. “Even though this Determining Occupancy and or facilitate the diagnosis, cure, mitigation, or treatment of disease, Nonqualified Use change occurred last illness, or injury. The new law prevents taxpayers year, it has received from excluding the gain on the sale • Any period of temporary absence little coverage and of a home attributed to periods of (not in excess of 2 years) resulting from unforeseen circumstances. “nonqualified use,” which refers to any we find there remains period after 2008 when the residence Examples in this case include a lot of confusion was not used as a primary residence. involuntary conversion; damage to the home from disasters or Short, temporary absences for on how this impacts vacations or seasonal absences are acts of terrorism; death; loss capital gains when counted as qualified use, even if of employment allowing the taxpayer to receive unemploy- the taxpayer rents out the property selling a residence.” during these periods. (An absence of ment compensation; change an entire year will not be considered of employment resulting in the This ratio greatly alters the resulting a temporary absence.) There are taxpayer’s inability to pay housing gain amount. For example: several important exclusions when it costs and living expenses; divorce; comes to nonqualified use, the most legal separation; or multiple births A married couple purchases a from a single pregnancy. “Other notable being: vacation home on January 1, 2009 reasons exist, but these are the for $250,000. Two years later the • Any period before January 1, 2009. most common when it comes couple moves into the vacation • The 5-year period after the last to ‘unforeseen circumstances,’” home and uses it as their principal date that the residence is used as said Michael. residence. On January 1, 2013 (two a principal residence. • The exclusion will also not apply to years after moving into the vacation • Any period (not in excess of 10 the extent the gain is attributable home and making it their primary years) during which the taxpayer to depreciation allowed for rental residence), the couple sells the or business use of the residence home for $700,000. They make a is on military duty. for the periods after May 6, 1997. profit of $450,000. • Any period of temporary absence (not in excess of 2 years) resulting Another key aspect in determining “Under the old law, the taxpayers from a change of employment. your gain exclusion is the question of would be able to exclude the entire The change of employment test proving residency. How people prove $500,000 gain since they had lived is satisfied if the taxpayer’s new residency can vary from one state to in the home for two out of five years. place of employment is at least 50 another, and this has always been a Under the new law, they will only be miles farther from the residence gray area with the IRS. If a taxpayer able to exclude one-half of the gain sold than was the former place of used more than one residence, the as the ratio is applied,” said Michael. employment. If there is no former one occupied for the majority of The calculation is illustrated below: place of employment, the distance the time is generally considered the between the taxpayer’s new place principal residence. However, there 2 years x $450,000 = $225,000 of employment and the residence are also a number of factors that sold must be at least 50 miles. support residency. “The greater 4 years • Any period of temporary absence number of these factors you can use “They will be required to pay capital (not in excess of 2 years) resulting in support of your residency claim, gains tax on the remaining $225,000, from a change of health. For the better,” said Michael, “so it is which is a significant change if this health circumstances, the primary important to keep records to support couple were unaware of the new test will be satisfied if the reason your case.” Examples of these calculation in place,” said Michael. for the sale is to obtain, provide, factors include: Personal finance perspectives Volume 1 | 2010 PricewaterhouseCoopers 7
  8. 8. • Where the taxpayer spends the majority of their time each year Recent court case granddaughter. In September, she transferred $4.25 million in cash and • The principal place of abode of addresses LLC marketable securities to the LLC, then the taxpayer’s family members transfer taxes transferred the entire LLC interest into the two trusts she created. The • Place of employment LLCs carry the same transfers to each trust were structured • Address listed on the income tax wealth transfer as a gift of a 9.5% interest and a sale of a 40.5% interest in exchange for a return(s) advantages as more promissory note. • Address on driver’s license and auto registration traditional limited Pierre had obtained an appraisal • The taxpayer’s mailing address for partnerships of her LLC, which valued the membership interest at 30% bills and correspondence discount below their fair market While limited partnerships are • Voter registration a commonly applied wealth value due to the lack of marketability management tool, LLCs have and control. On her gift tax return, • Banking relationship(s) Pierre reported the gifts to the trusts been gaining in popularity for the • Membership in religious and/or added flexibility they often offer in as gifts of membership interests in recreational organizations transferring interests—despite the the LLC, valued at $256,168 for each valuation transfer issues that may 9.5% interest. Pierre did not report All of these factors contribute to arise with an LLC over a limited the transfer of the 40.5% interest determining your residency status, partnership. However, a recent on a gift tax return as it was a sale and, coupled with any periods of court case involving the valuation of formalized by two promissory notes of nonqualified use, should be taken transfers of LLCs ruled in favor of $1,092,133 each. All values included into account if you are planning to the taxpayer and should encourage a 30% discount determined by an sell a residence in 2010. a closer look at LLCs as an option to independent appraiser. limited partnerships. The IRS argued that, because For questions or additional information on this topic contact Pierre elected to treat the LLC The case as a disregarded entity under the Martha Michael check-the-box regulations, the Personal Financial Services Director In July of 2000, Suzanne Pierre, a New transfers should have been treated 314-206-8852 York resident, set up a single-member as transfers of the underlying assets martha.michael@us.pwc.com LLC as part of her estate planning as opposed to transfers of the LLC strategy. As she was not treating her membership interests. In short, the LLC as a corporation, she did not file IRS did not believe Pierre’s transfers a corporate income tax return for the were entitled to the valuation LLC. That same month, Pierre also discount and valued the reported created two trusts for her son and gifts at $403,750 per trust. A recent court case involving the valuation of transfers of LLCs ruled in favor of the taxpayer and should encourage a closer look at LLCs as an option to limited partnerships. Personal finance perspectives Volume 1 | 2010 PricewaterhouseCoopers 8
  9. 9. What the court decided… Implications of this decision In a 10-6 split, the court in this case This decision allows LLCs the same held that, for gift tax purposes, an valuation discounts enjoyed by individual’s transfer of membership limited partnerships for transfer tax interests in an LLC shall be valued purposes. This may prove useful in a as a transfer of member interests wealth transfer context as taxpayers in the LLC rather than a transfer of strive to pass wealth and entity the underlying assets. Therefore, control from one generation to the the transferor may discount the next. LLCs have many advantages value of the transfer through the use that partnerships do not, including of valuation discounts for lack of limited liability and less stringent marketability and control (much like member agreements. If they also with a limited partnership). share the same wealth transfer advantages, LLCs may well become In finding for Pierre, the court the transfer vehicle of choice for reasoned that under New York state business succession and estate law, she did not have a property planning purposes. interest in the underlying assets because the LLC was recognized Also, this case shows that the as an entity separate and apart Tax Court continues to take issue from herself. While the check- with disregarded entities and their the-box regulations govern how a incidences of taxation. The decision single-member LLC will be taxed suggests that there are distinctions for Federal income tax purposes, between income and transfer taxation they do not apply to "disregard the and as such, different layers of tax LLC in determining how a donor treatment exist within a single entity. must be taxed under the Federal gift tax provisions on a transfer of For questions or additional an ownership interest in the LLC." information on this topic contact To find otherwise would be to Jason Uetrecht "require that Federal law, not State Personal Financial Services Director law, apply to define the property 314-206-8228 rights and interests transferred jason.uetrecht@us.pwc.com by a donor for valuation purposes under the Federal gift tax regime." The majority reasoned this was an inappropriate interpretation and that the purpose of the language "for Federal tax purposes" was "to cover the classification of an entity for federal income tax purposes” and not to alter the federal gift tax valuation regime. Published by Private Company Services This content is provided by PricewaterhouseCoopers LLP for general guidance only, and does not constitute the provision of legal advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose. © 2010 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership) or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity. LA-10-0253

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