Every month, the Internal Revenue Service (IRS) publishes interest rates that taxpayers use to determine the interest to be charged in income tax and estate planning strategies. Those published rates, called the Applicable Federal Rates, depend on the length of the term of a promissory note, the number of times interest is paid each year (i.e.,» Read More
As the festivities of the New Year have waned and we approach Tax Season, we bring you news of recent legislative development – The SECURE Act – that warrants your attention and may require changes to your estate plan.
I recently contributed an article published in Network Magazine entitled “Effective Estate Planning: A New Era.” This article discusses effective estate planning and tax planning for individuals, common client misconceptions, and why effective estate planning is not only about the Will.» Read More
The new section 199A of the Internal Revenue Code (IRC) provides a potential tax break for owners of passthrough entities like S corporations, partnerships, and limited liability companies (taxed as partnerships or as disregarded entities). For higher-income taxpayers, the 20% Qualified Business Income (QBI) deduction is generally limited to the greater of 50% of the allocable W-2 wages for the trade or business, or 25% of allocable W-2 wages for the trade or business plus 2.5% of the unadjusted basis immediately after acquisition (UBIA) of qualified property. » Read More
‘Tis the season of giving, but with the new federal tax law changes, charities could experience a drop in donations. Since charitable deductions must be itemized to receive a tax deduction, the benefit of the higher standard deduction may effectively eliminate the tax benefit of the deductible donations for many taxpayers.» Read More
The Tax Cuts and Jobs Act created a new Section 199A of the Internal Revenue Code (IRC) that provides for a potential tax break on qualified business income of non-corporate taxpayers, beginning in 2018.
Section 199A requires that the qualified business be effectively connected with the conduct of a trade or business within the United States. » Read More
Many people are aware of the increased federal estate tax exemptions (approximately $11.2 million plus a COLA adjustment for a decedent dying in 2018 through December 31, 2025 and then reverting to $5.0 plus COLA) along with the elimination of New Jersey estate tax (but not its Inheritance tax which remains in effect). » Read More
New Jersey just implemented the 2018 New Jersey Tax Amnesty Program. During the period that begins November 15, 2018, and ends January 15, 2019, taxpayers have an opportunity to file past due tax returns and/or pay back taxes along with one-half of the interest due and no penalties.» Read More
If you are about to send your 18-year-old off to college, you are probably busy with last-minute shopping, packing and worrying about roommates. But have you considered what happens if your child lands in the hospital after a car accident or a serious illness?» Read More
The Tax Cuts and Jobs Act, which was signed into law on December 22, 2017, is the biggest overhaul to our Federal Income Tax Code. It reduces tax rates, eliminates certain deductions, and enhances other deductions and tax credits. One significant change is the treatment of capital gains invested in a qualified opportunity zone.» Read More