James F. McDonough
Counsel

About

James F. McDonough, Jr. concentrates on wealth preservation and estate planning for high net worth individuals, closely held business matters and ownership succession, estate administration and income tax planning. He worked for three years for the public accounting firm, then known as Touche Ross, where he obtained his license as a Certified Public Accountant in 1983. In 1984, he was employed as a tax attorney by Union Camp Corporation where he engaged in planning for corporate income deferred compensation, qualified plan and tax-free exchanges. In 1986, Mr. McDonough was employed as Tax Manager for Monroe Systems For Business, Inc. Thereafter, he was employed as a tax attorney for five years where he engaged in corporate and estate tax planning and estate administration and litigation.

Practices

















Education

Thomas Jefferson School of Law (L.L.M., 2006)

Georgetown University Law Center (M.L.T., 1988)

Seton Hall University School of Law (J.D., 1980)

Rutgers Graduate School of Management (M.B.A., 1984)

William & Mary, Williamsburg, Virginia (B.B.A., 1977)

Bar Admissions

New Jersey (1980)

New York (1988)

U.S. District Court District of New Jersey (1981)

U.S. Court of Appeals 3rd Circuit, 1981

U.S. Tax Court (1981)

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Blog

Imputed Interest, Gifts and Family Loans
Posted on Tuesday April 15, 2014

famly loanFamily Loans are an integral part of life, as well as estate and gift tax planning.  Until the IRS victory in Dickman in 1980, interest-free loans were a staple of tax planning. Today, however, the rules that apply are designed to force interest income to be reported, even if not paid.  Certified Public Accountants (CPAs) […]

The post Imputed Interest, Gifts and Family Loans appeared first on Tax, Trust, and Estate News.

New York doubles estate tax exemption
Posted on Friday April 11, 2014

new-york-001New York Gov. Andrew Cuomo has led a well-publicized push to simplify the Empire State's tax code. As of the stroke of midnight on April 1, the estate tax exemption doubled to more than $2 million, according to Crain's New York Business. As per the budget agreement reached over the weekend, the state's tax exemption will rise […]

The post New York doubles estate tax exemption appeared first on Tax, Trust, and Estate News.

Aragona Trust v. Commissioner: A Taxpayer Victory Against the 3.8% Surcharge
Posted on Tuesday April 08, 2014

aragona-trust-001One of the hard-fought issues between taxpayers and the Internal Revenue Service (IRS) was whether a trust could qualify for the passive activities exception. Specifically, activities are grouped into one of two categories, either active or passive. The goal of §469 was to prevent losses from a passive activity from offsetting active income. If one […]

The post Aragona Trust v. Commissioner: A Taxpayer Victory Against the 3.8% Surcharge appeared first on Tax, Trust, and Estate News.

Caterpillar Inc faces tax probe
Posted on Friday April 04, 2014

Caterpillar IncA number of companies have coming under scrutiny in recent months, as the U.S. reconsiders its corporate tax policy. The latest of these companies is the Peoria-based construction equipment manufacturer Caterpillar Inc., which is being probed by a U.S. Senate investigative panel to find out whether it avoided taxes by improperly moving profits overseas, according […]

The post Caterpillar Inc faces tax probe appeared first on Tax, Trust, and Estate News.

S Corporation and ESOPs
Posted on Thursday April 03, 2014

S-CorporationAn Employee Stock Ownership Plan (ESOP) is a permitted shareholder of stock in a corporation with a valid S election in effect (“S Corporation”).  IRC §512(e)(1) provides that the earnings attributable to an ESOP’s stock in an S Corporation shall be taxable as unrelated trade or business income; however, §512(e)(3) further provides that §512(e)(1) shall […]

The post S Corporation and ESOPs appeared first on Tax, Trust, and Estate News.

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Affiliations

ABA, Tax, Real Property, Trust and Probate Sections, 1981 - Present

NJSBA, 1981 - Present

AICPA, 1981 – Present

NJSCPA, 1981 – Present )

International Compliance Association

International Fiscal Association (IFA)

International Tax Institute (ITI)

International Tax Planning Associate (ITPA)

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Videos

Mitt Romney's Tax Return Strategies can be used for your own Personal Wealth Building

Mitt & Ann Romney recently released their individual income tax returns. Frank Brunetti and James McDonough, Tax Lawyers with the Firm Scarinci Hollenbeck in...

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