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Tax Planning Archives - Page 3 of 4 - Wealthspire | Page: 3

QBI

Qualified Business Income (QBI)

By and Blog
Deduction May Create New Planning Strategies for Some Business Owners The Tax Cuts and Jobs Act of 2017 introduced a new 20% tax deduction focused on pass-through businesses. As tax accountants pore through the Internal Revenue Service’s recently released 184-plus pages of guidance on the so-called Section 199a deduction for “qualified business income” (QBI), many business owners are wondering whether they will qualify. While everyone’s circumstances are different, and we encourage consultation with a tax advisor, the Act created an opening for several planning opportunities to potentially reduce tax bills for owners of such businesses. First, a little background. Qualified…
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biden tax proposal

Back to the Future? A Look at Biden’s Tax Proposals

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Somehow lost in all of the news coverage of the COVID-19 pandemic and social unrest, Joe Biden, the former Vice President and current Democratic nominee for President, has proposed a number of individual, payroll, and corporate tax increases to fund new or expanded government programs. The proposal comes as Biden has partnered with Vermont senator Bernie Sanders to further attract progressives to his campaign and allure voters in November. These proposals will have a material impact on higher-income taxpayers. Individual Taxes Summary In general, higher-income taxpayers would face significantly increased income and payroll taxes. The changes would repeal the income…
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planning opportunities

Planning Strategies to Consider in a Volatile Environment

By and Blog
While the Coronavirus pandemic has brought its share of fear and anxiety, it also brings some favorable financial planning opportunities that can be of significant benefit for you and your family. Below are some opportunities to consider. 1. Harvesting Capital Losses: An approximate 20% decline in equity markets from the early year high, along with volatility in sectors of fixed income markets have caused security values to decline.  As we periodically rebalance portfolios, in taxable accounts we look to realize capital losses and replace sold positions with similar, but not identical, securities to maintain desired exposures. When we “harvest” capital…
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The SECURE Act: What You Need to Know

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On December 16, 2019, Congress agreed to a spending bill which included a law called the Setting Every Community Up for Retirement Enhancement Act (SECURE Act). The SECURE Act was passed only by the House in the summer, but seemed to be falling by the wayside until it was attached to this spending bill. The new law is effective January 1, 2020. Below is some insight into the major implications of this new law, and some thoughts on how to lessen the impact of the most important change: the removal of the stretch RMD provisions on inherited IRAs. What did…
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gifting 2019

Do I need to make gifts before the end of the year?

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With all of the political uncertainty and recent changes in the tax law, our clients are wondering what to do about gifting. Below are answers to three commonly asked questions that we are getting this time of year. Note that this blog covers non-charitable gifts.* 1. Do I need to make gifts before the end of the year? Only if you are making annual exclusion gifts. You may give away $15,000 per person ($30,000 if gift-splitting with a spouse) each year tax-free. If you want to use your annual exclusion for 2019, the gift needs to be completed before the…
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gst tax

Important Gift Tax and Trust Income Tax Reminders

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As tax season is now in full swing, below are some important gift tax and trust income tax return reminders: Gift Tax Returns The lifetime exemption from gift and estate tax was $11,180,000 per person in 2018. Currently it is $11,400,000 per person for 2019. Generally, gifts made directly to a medical provider or educational institution on behalf of someone do not count against your lifetime exemption. In addition, donors have an annual exclusion from gift tax of $15,000 per donee. This means that a donor may give $15,000 to each of his or her three children, for example, without…
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moving abroad tax

Moving Abroad for Work? Here’s How You’ll be Taxed

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The following refers to citizens and resident aliens of the United States who are not otherwise exempt.   Do I still have to pay U.S. income tax? Yep, sorry - the United States is one of only a few countries that taxes its citizens on their worldwide income, regardless of where they earned that money. Additionally, note that because of the Foreign Account Tax Compliance Act of 2010 (FATCA), foreign and offshore banks will report any of your assets held there to the U.S. government.  The reach of the IRS extends far and wide. However, you may be eligible to…
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