Tax Planning Tips & Resources

The Tax Cuts and Jobs Act of 2017 (the “Act”) contained a number of favorable tax provisions. Among other changes, the Act reduced the top income tax rate from 39.6% to 37% and significantly reduced the number of taxpayers subject to the AMT. The Act also raised the exemption from gift and estate tax to a historic high. In 2017, an individual could pass $5.6 million (indexed for inflation) per person free from transfer tax. Following the passage of the Act, in 2018, the same individual could no

Tax policy has remained a continued focus for both Vice President Harris and former President Trump as we near the election and the conclusion of their campaigns. Changes to tax policy can have far-reaching implications for individuals, families, and businesses. We have prepared a comprehensive chart below that outlines current tax law alongside proposed tax plans from Vice President Harris and former President Trump. This chart was compiled using information from each candidate’s publicly avai

Estate planning is not on the top of the “to-do” list for most people. We are focused on enjoying our daily lives, not on planning for what happens after our passing. However, estate planning can save families significant money as well as stress and frustration. And with an upcoming law change, we will hear much more about estate planning in the coming weeks and months. Background Estate taxes, often referred to as the “death tax,” have long been a topic of political debate and financial planni

Purpose The Wealthspire Advisors Financial Planning Committee has recently received several questions regarding RMD rules in a post-SECURE Act world. Questions remain about the RMD rules for non-spousal beneficiaries subject to annual RMDs during the 10-year distribution period because those regulations have not yet been finalized. The purpose of this piece is to outline what our team believes to be best practices regarding these unfinalized regulations. This memo will also provide a quick revi

After spending a few days recently in the warmth of Miami, I always wonder why I do not live in (or retire to) a part of the country where this weather is common all year long. And since I am a fan of the beach, having a coastline would be nice, too. At first I thought about California, but it’s far away from friends and family, has earthquakes, that three-hour time zone issue, and it’s one of just a handful of states that’s actually more expensive to live in from a tax perspective (sorry, I am

This post will help you consider estate planning strategies in light of the current federal estate, gift and generation skipping transfer tax exemption, which in 2018 increased to $11.18M and has been indexed for inflation each year since then. However, the exemption amounts are scheduled to revert back to the pre-2018 exemptions (indexed for inflation) when the clock strikes midnight on January 1, 2026. Remind me what the numbers are. Below is a basic chart outlining the numbers (per person) i

The bad news is that there is a federal transfer tax on assets that you give away during life, at death, and to individuals two or more generations below you. The good news is that this transfer tax will only apply to the wealthiest Americans and, even so, there are strategies you can use to minimize or avoid its application. The federal estate, gift and GST tax only kicks in above a certain dollar threshold. Furthermore, there are additional wealth transfer strategies that do not trigger any t

While the large increase in the federal estate tax exemption has provided many with federal estate tax relief, New Yorkers must continue to plan for New York estate tax. For a quick review of the New York Estate Tax “Cliff” basics, see the “Understanding New York’s Estate Tax “Cliff” blog post. What is the current exemption from New York estate tax again? The current New York estate tax exemption amount is $6,940,000 in 2024 (up from $6,580,000 in 2023). Under current law, this number will rema

In 2014, dramatic changes were made to New York’s gift and estate tax law. For many clients, the subject of the New York estate tax “cliff” continues to remain a source of confusion. This is for good reason. The New York estate tax cliff is not easy to understand, nor is it easy to know how it may impact your particular situation. The answers below are intended to guide those who remain baffled by the New York estate tax cliff. Learn more about mitigating the New York estate tax cliff here. Doe