Tax Planning Archives | Page 3 of 4 | Wealthspire Advisors

The AMT remains in-force following the Tax Cuts and Jobs Act (TCJA), but it will impact far fewer taxpayers beginning this year. This is welcome news for many households that are concerned about the $10,000 cap on state and local tax deductions. The alternative minimum tax was enacted in 1969 as a parallel tax system to ensure a small group of high income earners paid some federal tax. The idea was to disallow certain types of tax-free income that millionaires were privy too. However, by last year, approximately five million households were affected – many of them had annual incomes…

Imagine a successful paper sales company, Dunder Mifflin, Inc. (a C corporation). In 2017, Dunder Mifflin had taxable income of $3MM, resulting in an effective federal corporate tax rate of 34%. In addition, since corporations are double-taxed, distributions will be subject to another layer of tax in the hands of individual shareholders. Dunder Mifflin’s local competitor, Prince Paper LLC, is a family business owned equally by Mr. and Mrs. Prince and their adult son, Junior. Prince Paper also employs one receptionist and two warehouse workers. Prince Paper is treated as a pass-through entity for tax purposes, with each of the…

On December 15th, the House and Senate Conference Committee released a Conference Agreement that lays out the final terms of the tax reform bill. The Senate passed a final version of the bill on December 19th, and the House is expected to approve the updated terms sometime today. Once the bill has been finalized, President Trump will sign the bill into law – a move that is expected to happen before year-end. If passed, however, several key pieces of the legislation will expire by January 1, 2026. Below are some of the bill’s highlights, as well as items to take…

During our 2017 year-end tax planning call, Michael Delgass, Managing Director, and Nicole Hart, Senior Vice President of Trusts & Estates, cover a number of important topics, including: Income tax planning, specifically noting that this year so far has presented fewer opportunities for tax-loss harvesting than 2016 Retirement planning, including Required Minimum Distributions (RMDs), Roth IRA conversions, and the establishment of other qualified plans Charitable giving strategies and donor-advised fund deadlines Estate and gift tax planning A recording of the call is below.