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

tax law changes

The Continuing Impact of the 2017 Tax Cuts and Jobs Act

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A recap of tax law changes with updates for 2019 taxes On December 22, 2017, the “Tax Cuts and Jobs Act” was passed into law, signifying the most sweeping change to the U.S. tax code in decades. Months of analysis and discussion followed, and frankly, are still occurring today. Because of the many changes taxpayers needed to consider, it doesn’t need to be tax season to remind everyone what is in store for future tax filing years: Forms 1040A and 1040EZ were eliminated, so everyone must the standard Form 1040. The Form 1040 was redesigned and is supplemented by new…
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QCDs

Understanding Qualified Charitable Distributions (QCDs)

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Don’t make the loss of a tax deduction your reason for not giving Charitable giving stems from an intrinsic desire to express support for causes that are dear to one’s heart. The U.S. government recognizes the social benefit of charitable giving, as such, the tax code provides a tax deduction that ultimately reduces the givers’ taxable income. While most people don’t give solely to obtain a tax deduction, they may be inclined to give more because of the added incentive the tax deduction provides. The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction. The increased standard…
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kiddie tax

What is the Kiddie Tax?

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As an advisor who works with clients in their 30s and 40s, I spend much of my time talking about children. Besides discussing how much fun kids are or how little their parents are sleeping, a majority of these conversations focus on the best way to save for children, now and for the future. We often discuss the pros and cons of 529 Savings Plans, custodial (UGMA/UTMA) accounts, and creating and funding separate trusts, as well as target annual savings rates for specific expenses (e.g. college, camp, etc.). One topic that is often overlooked, however, is the tax rules impacting…
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taxation benefits

Taxation of Benefits When States of Employment and Domicile Differ

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For many, working in one state and living in another is a common situation. For example, a 2017 report cited by the New York Times estimates that over 300,000 people commute from New Jersey to New York each day. For those commuters, filing an income tax return in both states each year is the norm. The typical process is to withhold and pay tax in the state where you work while you also file in your resident state and claim a credit for taxes paid to the non-resident state. For those who cross state lines to work, there is also…
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Understanding the Proposed Regulations for FLPs and Family Businesses

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If you’re a family business owner or you created a family limited partnership (FLP), you may be wondering about the proposed Treasury Regulations that were released earlier this month.  You may have even tried to read an article or two on the topic.  If you’re wondering whether you should care about the proposed regulations and why, please read on. Background Valuation discounts for transfers of business interests between family members can be a powerful gift and estate tax planning tool.  Most discounts relevant to this discussion can be put into two general classifications: (1) lack of control, and (2) lack…
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