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Tax Planning Archives - Wealthspire

tax savings qsbs

Tax Planning Opportunities with QSBS – “Packing” & “Stacking”

By Guides & Whitepapers
Section 1202 – An Overview Previously, we've discussed the historical context, shareholder/corporate qualification requirements, and common shareholder issues faced by holders of Section 1202 stock, more popularly referred to as Qualified Small Business Stock (QSBS). IRC Section 1202 allows qualified shareholders to exclude from federal income tax the greater of: $10 million of realized capital gain, or 10 times the stockholder’s adjusted cost basis, upon the sale of QSBS in a calendar year. The requirements to qualify for this generous tax exclusion are numerous and should be discussed with experienced legal, tax, and financial advisory experts before any action is…
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adjusted gross income

Adjusted Gross Income (AGI)

Financial Dictionary
What Is Adjusted Gross Income? Adjusted gross income (AGI) is one figure used in the calculation of income tax liability. It is determined by subtracting allowable adjustments from gross income. Adjusted Gross Income Calculator Your adjusted gross income is your total income, or gross, minus any eligible deductions. To find your AGI, add all forms of income together, then tax and subtract deductions from that amount. Your AGI can be zero or even negative. Use an AGI calculator to see eligible deductions and help you figure out your Adjusted Gross Income. Adjusted Gross Income Example Examples of forms of income…
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cliff

Mitigate New York’s Estate Tax Cliff with Smart Estate Planning and Gifting Strategies – 2022 Update

By Blog
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 $6,110,000 for 2022. Under current law, this number will remain until January 1, 2023, at which point it will rise again with inflation. Who does the Cliff affect? Everyone…
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tax law changes

Estate Planning in Light of Current Law: Your Questions and Our Answers – 2022 Update

By Blog
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) pre-2018 as compared to the numbers currently. Remember these numbers relate to federal estate tax. We will discuss state estate…
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gst tax

Basics of Federal Estate, Gift, and Generation-Skipping Transfer (“GST”) Tax – 2022 Update

By Blog
The bad news is that there is a federal 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 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 tax at all if structured properly. Taxable Gifts There is a federal estate and gift…
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new york estate tax cliff

Understanding New York’s Estate Tax “Cliff” – 2022 Update

By Blog
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 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. Does New York have an estate tax? Yes. New York, like several other states, has a state estate tax. This means that…
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tax cheat sheet

2022 Federal & State Estate and Gift Tax Cheat Sheet

By Guides & Whitepapers
Here we have provided a “cheat sheet” to keep in mind for 2022 federal estate, gift and GST exemptions, as well as exemptions and inheritance tax consequences in specific states where a number of our clients reside. Federal Estate, Gift, and GST Tax Below is a summary of the current federal estate, gift, and generation-skipping transfer tax provisions for 2022. Note that, under current law, the increases in exemption amounts that began in 2018 are set to expire in 2026, at which point they will revert back to the pre-2018 numbers (i.e., $5,490,000 per person, indexed for inflation). Gift and…
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