Articles & newsletters

June 25, 2019

Estate planning portability lives on under the TCJA

When the TCJA was passed, the big estate planning news was that the federal gift and estate tax exclusion doubled from $5 million to an inflation-indexed $10 million. It was further indexed for inflation to $11.18 million for 2018 and now $11.4 million for 2019. Somewhat lost in the clamor, however, was (and is) the … Continue reading Estate planning portability lives on under the TCJA

Be ready for anything with regular business valuations

Do you know the current value of your business? Even if you’re not considering selling your company or otherwise transferring its ownership right now, it could happen sooner than you think. In some cases, an ownership transfer becomes suddenly appealing when a company struggles to the extent that a sale becomes the best avenue for … Continue reading Be ready for anything with regular business valuations

Could an FLP help your business succession plan?

One of the biggest concerns for business owners is succession planning — transferring ownership and control of the company to the next generation. Often, the best time taxwise to start transferring ownership is long before the owner is ready to give up control of the business. A family limited partnership (FLP) can help owners enjoy … Continue reading Could an FLP help your business succession plan?

Tax calendar

July 15 — If the monthly deposit rule applies, employers must deposit the tax for payments in June for Social Security, Medicare, withheld income tax and nonpayroll withholding. July 31 — If you have employees, a federal unemployment tax (FUTA) deposit is due if the FUTA liability through June exceeds $500. ·      The second quarter Form 941 (“Employer’s … Continue reading Tax calendar

No surprises: Why you should check your tax bracket

Many taxpayers learned some tough lessons upon completing their 2018 tax returns regarding the changes brought forth by the Tax Cuts and Jobs Act (TCJA). If you were one of them, or even if you weren’t, now’s a good time to check your bracket to avoid any unpleasant surprises next April. Under the TCJA, the … Continue reading No surprises: Why you should check your tax bracket

June 18, 2019

TCJA inspires many business owners to reconsider entity choice

For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) created a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were taxed at rates as high as 35%. Meanwhile, the TCJA also reduced individual income tax rates, which apply to sole proprietorships and owners … Continue reading TCJA inspires many business owners to reconsider entity choice

Consider the tax advantages of qualified small business stock

While the Tax Cuts and Jobs Act (TCJA) reduced most ordinary-income tax rates for individuals, it didn’t change long-term capital gains rates. They remain at 0%, 15% and 20%. The capital gains rates now have their own statutory bracket amounts, but the 0% rate generally applies to taxpayers in the bottom two ordinary-income tax brackets … Continue reading Consider the tax advantages of qualified small business stock

Ensuring your long-term care policy is tax-qualified

A long-term care insurance policy supplements your traditional health insurance by covering services that assist you or a loved one with one or more activities of daily living. Such activities include eating, bathing, dressing, toileting and transferring (in and out of bed, for example). Long-term care coverage is relatively expensive, but it may be possible … Continue reading Ensuring your long-term care policy is tax-qualified

Vacation homes: Do you understand the tax nuances?

Owning a vacation home can offer tax breaks, but they may differ from those associated with a primary residence. The key is whether a vacation home is used solely for personal enjoyment or is also rented out to tenants. Sorting it out If your vacation home is not rented out, or if you rent it … Continue reading Vacation homes: Do you understand the tax nuances?

May 1, 2019

Innocent spouse rules offer protection under some circumstances

Must one spouse pay the tax resulting from a fabrication or omission by another spouse on a jointly filed tax return? It depends. If the spouse qualifies, he or she may be able to avoid personal tax liability under the “innocent spouse” rules. Joint filing status Generally, married taxpayers benefit overall by filing a joint … Continue reading Innocent spouse rules offer protection under some circumstances