EMAIL DETAILS

Eric D. Schwerin
eschwerin@rosemontseneca.com

Sent from my iPhone

Begin forwarded message:

> From: Jenny McMahan <jstein@rosemontcapital.com>
> Date: March 17, 2011 9:02:56 AM EDT
> To: Eric Schwerin <eschwerin@rosemontseneca.com>, Devon Archer <darcher@rosemontcapital.com>
> Subject: FW: Seneca
>

> Eric saved the day!
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> From: Dennis J. Loughran [mailto:dloughran@schneiderdowns.com]
> Sent: Thursday, March 17, 2011 9:00 AM
> To: Jenny McMahan
> Subject: Re: Seneca
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> No tax
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> From: Jenny McMahan [mailto:jstein@rosemontcapital.com]
> Sent: Thursday, March 17, 2011 08:59 AM
> To: Dennis J. Loughran
> Subject: RE: Seneca
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>
> Cool, so no tax?!?
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> From: Dennis J. Loughran [mailto:dloughran@schneiderdowns.com]
> Sent: Thursday, March 17, 2011 8:56 AM
> To: Jenny McMahan
> Subject: Re: Seneca
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>
>
> I think I signed all returns. So Kyle must have seen the light!
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> I will pdf returns to you today. I will bring originals for Devon to sign when I get to NYC.
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> Thanks
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>
> From: Jenny McMahan [mailto:jstein@rosemontcapital.com]
> Sent: Thursday, March 17, 2011 08:51 AM
> To: Dennis J. Loughran; Kyle J. Hazen
> Subject: FW: Seneca
>
>
> Hi guys, just checking in on Seneca. What are your thoughts on Eric’s email? Thanks!
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>
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> From: Eric Schwerin [mailto:eschwerin@rosemontseneca.com]
> Sent: Wednesday, March 16, 2011 11:40 AM
> To: Jenny McMahan
> Cc: Dennis J. Loughran; Devon Archer
> Subject: Re: Seneca
>
>
>
> Let me know if we reschedule the call, but in the meantime, I checked with the accountant who does our taxes for Seneca here in DC. He says that in DC if the owners do at least 80% of the work then the entity is exempt from the franchise tax in DC. Since there are no employees in RSP it would seem that we meet that criteria here and would be exempt.
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> Let me know if you'd like to be put in touch with our accountant here in DC to discuss.
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> Thanks,
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> Eric
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> Eric D. Schwerin
>
> Rosemont Seneca Partners, LLC
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> 1010 Wisconsin Ave., NW
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> Suite 705
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> Washington, DC 20007
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> (202) 333-1880
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> eschwerin@rosemontseneca.com
>
> P Consider the environment before printing this email.
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> On Mar 16, 2011, at 9:44 AM, Jenny McMahan wrote:
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> Dennis- are you available for a call on this sometime this morning? Thanks.
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> From: Kyle J. Hazen [mailto:khazen@schneiderdowns.com]
> Sent: Tuesday, March 15, 2011 12:15 PM
> To: Eric Schwerin; Jenny McMahan; Devon Archer
> Cc: Dennis J. Loughran
> Subject: RE: Seneca
>
>
>
> All,
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> The guaranteed payment route will not solve our franchise tax problem. As such, propose we push the $200,000 from advisors all the way out to the partners of Rosement Seneca Partners as a management fee, which will reduce each partners K-1 by that amount. To offset this, and to get the income taxed to the partners, Seneca Partners will need to issue 1099’s to the partners for $100,000 each.
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> Let me know your thoughts before we move forward please.
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> Regards,
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> This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.
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> Kyle J. Hazen, CPA
>
> Schneider Downs & Co., Inc.
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> 1133 Penn Avenue
>
> Pittsburgh, PA 15222
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> Direct: 412-697-5298
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> khazen@schneiderdowns.com
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> <image001.jpg>
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> Visit our website at www.schneiderdowns.com.
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> Subscribe to SD Insights: https://www.schneiderdowns.com/subscribe
>
>
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> From: Eric Schwerin [mailto:eschwerin@rosemontseneca.com]
> Sent: Thursday, March 10, 2011 5:47 PM
> To: Dennis J. Loughran
> Cc: jstein@rosemontseneca.com; Kyle J. Hazen; darcher@rosemontcapital.com
> Subject: Re: Seneca
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> Dennis/Kyle-
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> Any resolution on this? Anything you need from us?
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> Thanks,
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> Eric
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> Eric D. Schwerin
>
> Rosemont Seneca Partners, LLC
>
> 1010 Wisconsin Ave., NW
>
> Suite 705
>
> Washington, DC 20007
>
> (202) 333-1880
>
> eschwerin@rosemontseneca.com
>
> P Consider the environment before printing this email.
>
>
>
> On Mar 3, 2011, at 11:24 AM, Dennis J. Loughran wrote:
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> Kyle
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> I was thinking could we move the income in the lower tier to the partnership then move the income to the partners in a guaranteed payment which should get rid of taxable income for franchise tax? Or is there a trap in there that makes you add back guaranteed payments for franchise tax at the partnership level?
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> I will be back in office this afternoon. Let me know your thoughts.
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> Thanks
>
> DJ
>
>
> From: Eric Schwerin [mailto:eschwerin@rosemontseneca.com]
> Sent: Thursday, March 03, 2011 11:07 AM
> To: Jenny Stein McMahan <jstein@rosemontseneca.com>
> Cc: Kyle J. Hazen; Devon Archer <darcher@rosemontcapital.com>; Dennis J. Loughran
> Subject: Re: Seneca
>
>
> Yes, please let me know. We have created entities in DC before and have not owed any franchise tax.
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> Eric D. Schwerin
>
> Rosemont Seneca Partners, LLC
>
> 1010 Wisconsin Ave., NW
>
> Suite 705
>
> Washington, DC 20007
>
> (202) 333-1880
>
> eschwerin@rosemontseneca.com
>
> P Consider the environment before printing this email.
>
>
>
> On Mar 3, 2011, at 10:59 AM, Jenny Stein McMahan wrote:
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> Hi Kyle,
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> I'm bringing Eric, who is a partner on the Seneca side and is president of RSP, into this conversation.
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> Could you please provide more info on this 20k tax bill? All of the income in RSA was paid out to Seneca Global so this should be a wash for the partnership, no?
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> On Thu, Mar 3, 2011 at 10:52 AM, Kyle J. Hazen <khazen@schneiderdowns.com> wrote:
>
> Jenny,
>
> The Washington D.C. returns we have to file for the Seneca entities are not updated in our tax software yet. We usually get updates on Friday’s so hopefully the latest update will push it through. If it does, we should be able to get the returns done Friday/Saturday.
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> Additionally, because of the income Seneca Advisors created this year, the entity will be looking at approx. $20,000 in franchise tax to D.C. Unfortunately, this is not a tax that will pass out to the partners, rather it will need to be paid by the entity.
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> I will keep you updated regarding the update.
>
> Regards,
>
> This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.
>
>
>
> Kyle J. Hazen, CPA
>
> Schneider Downs & Co., Inc.
>
> 1133 Penn Avenue
>
> Pittsburgh, PA 15222
>
> Direct: 412-697-5298
>
> khazen@schneiderdowns.com
>
>
>
>
>
> Visit our website at www.schneiderdowns.com.
>
> Subscribe to SD Insights: https://www.schneiderdowns.com/subscribe
>
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> =2