Income Tax

Taxes That Apply to Inheritances in NC

Posted on: April 7th, 2017
While North Carolina’s estate tax was repealed in 2013, other taxes may apply to an inheritance. Tax implications depend on the type of asset, the value, and other factors. ...

5 Considerations for Rental Property in Probate

Posted on: April 6th, 2017
Whether it’s a single property or multiple homes, rental property in probate poses a few concerns. Discussed below are five issues that must be addressed if a decedent owned rental property....

2017 North Carolina Tax Law Changes

Posted on: March 30th, 2017
Changes to tax rates in North Carolina became effective on January 1, 2017. The adjustments affect both businesses and individuals. When revising tax planning efforts, consider the modifications below....

Possible Tax Items to Expect With Trump Adminstration

Posted on: December 12th, 2016
Have you reviewed the proposed tax changes under the forthcoming Trump Administration? Read on to learn what is expected to change within the first 100 days following inauguration....

Last-Minute Year-End Tax Deduction: IRA Charitable Rollover

Posted on: December 29th, 2015
If you plan to use the IRA Charitable Rollover provision for the 2015 tax year--make arrangements before year's end!...

3 Estate Planning Items to Consider When Selling a Business

Posted on: December 15th, 2015
With a growing number of entrepreneurs in North Carolina, combined with a reliable survival rate, small business owners might encounter an opportunity to sell their business. How will proceeds from the sale be managed, protected, and taxed?...

Tax Planning for Family Loans

Posted on: June 19th, 2015
​Lending money to a relative might happen once, twice, or several times throughout one’s lifetime. If the lender does not plan well for the loan, taxes could be imposed....

Tax Concerns for New Domicile

Posted on: May 23rd, 2015
Living in one state while claiming domicile in another could offer many benefits depending on the jurisdictions. Tax benefits are generally a prime factor when an individual considers claiming domicile outside their resident state....

North Carolina Retirement Concerns

Posted on: May 7th, 2015
Climate, cost of living, and amenities generally affect an individual’s retirement destination choice. North Carolina’s convenient location between major cities like Atlanta and Washington, D.C. make it attractive to seniors who might want to move but stay close to family in metropolitan areas. Financially, North Carolina became even more attractive for retirement in 2012, when...

Learn if You Need to File an Amended NC Tax Return

Posted on: May 6th, 2015
Just after the start of the year, our tax attorneys in Chapel Hill encouraged some filers to hold their returns until after the General Assembly decided whether to pass pending state income tax laws. ...

Tax Planning for North Carolina Business Successions

Posted on: April 7th, 2015
While transferring business interests can have tax consequences, structuring a business succession plan with regard to tax law can help minimize tax burdens associated with business transfers to surviving family members when a business owner or partner dies. The Tax Foundation, a tax policy research group, ranks North Carolina Business Tax Climate Index as the...

10 Things to Ask Your Accountant: Small Biz Webinar

Posted on: March 30th, 2015
Our tax attorneys in Chapel Hill recently reviewed the advantages and disadvantages of investing or gifting your tax refund, tax issues when settling an estate, and ways to protect yourself from tax preparer fraud. As the tax season filing deadline fast approaches, the Internal Revenue Service is offering a community service through a webinar. Tomorrow...

Delay Filing: North Carolina Tax Changes Pending

Posted on: January 26th, 2015
The North Carolina General Assembly will review potential changes to North Carolina income tax laws on January 28, 2015. Filers should wait until after this date to submit their tax returns to prevent potentially refiling returns if tax changes are passed....

North Carolina 2014 Tax Year Changes to Note

Posted on: December 12th, 2014
Individuals and businesses across North Carolina are approaching the end of the 2014 tax year. Our tax attorneys in Chapel Hillreview below a few income tax legislation amendments for the 2014 tax year. ...

2014 Tax Changes

Posted on: November 3rd, 2014
As we are in the final quarter of 2013, our North Carolina tax attorneys are taking a look ahead at what the New Year brings for American taxpayers:...

Pending Court Case May Affect ‘Double Income Tax’

Posted on: October 27th, 2014
A couple’s case addressing the taxation of out-of-state income by their resident state is currently pending in the United States Supreme Court. Comptroller of the Treasury of Maryland v. Wynne questions the circumstances under which income earned out-of-state may be taxed, whether tax credits exist and what they provide, and if these procedures comply with state and county tax clauses....

Tax Requirements for North Carolina Trusts

Posted on: July 10th, 2014
In many states, an important factor in determining whether the trust is taxable is where the beneficiaries, settlor, and trustees are domiciled. A tax attorney may help determine how trust assets might need to be structured respective to a state’s tax laws to achieve the most favorable tax treatment....

Last-Minute Tax Review for Same-Sex Couples

Posted on: March 28th, 2014
As Americans across the country prepare tax returns in the final days before April 15th, married same-sex couples face unique tax filing requirements. ...

Tax Planning for 2015

Posted on: March 20th, 2014
Retirement accounts, estate plans, and trusts may be impacted by possible federal tax law changes next year in 2015. While the current configuration of Congress makes these changes unlikely, reviewing possible future changes can help individuals make effective planning decisions now....

Look Out For Tax Scams

Posted on: February 4th, 2014
Fraudulent companies and individuals take advantage of American taxpayers every year. The tax scammers use deception—and commonly prey on elderly persons—to acquire sensitive personal information....

Estate Planning and Real Estate Titles in North Carolina

Posted on: January 21st, 2014
Some families attempt to manage their own estate planning. For those who own a home and plan to eventually leave the home to children or other relatives, they may change the way the property title is held in an effort to make the transfer of ownership easier upon their death. However, without the counsel of a North Carolina estate planning or tax lawyer, these do-it-yourself methods may result in significant tax liability for the children....

More Tax Deductions Expiring End of 2013

Posted on: November 26th, 2013
If you have not yet consulted with your North Carolina tax attorney or CPA about several state deductions that are expiring (like the deduction for contributions to NC 529 College Savings Plans), over four dozen federal deductions scheduled to expire at the end of 2013 may prompt you to schedule a meeting soon. ...

Tax Season Postponed: Use Time to Review 2 Changes

Posted on: October 31st, 2013
The Internal Revenue Service recently announced a slight delay for the 2014 tax season. As a result of the government shutdown in October 2013, the IRS anticipates a 1-2-week delay for filers in January 2014. ...

Dissolving a Trust in North Carolina

Posted on: October 23rd, 2013
A year ago the nation waited for the government’s announcement about the estate tax exemption for 2013. A large number of American taxpayers established and funded irrevocable trusts just in case the federal estate tax exemption dropped to $1 million. ...

Important Tax Steps for Same-Sex Couples in NC

Posted on: October 22nd, 2013
Even though North Carolina does not grant or recognize same-sex marriages, the Internal Revenue Service announced in August 2013 that same-sex marriages will be recognized for federal tax purposes. ...

National Estate Planning Awareness Week 2013

Posted on: October 21st, 2013
Just before the holiday season starts siphoning shoppers’ money out of their pockets and into local economies, estate planning attorneys around the country spread awareness about important saving, investing, and planning opportunities during National Estate Planning Awareness Week. ...

Same-Sex Marriages Recognized by Jurisdiction of Ceremony

Posted on: October 3rd, 2013
Last week the Internal Revenue Service announced that valid same-sex marriages will be recognized for federal tax purposes based on the where the couple’s union took place. ...

BVI Accounts Under Scrutiny in 2014

Posted on: September 23rd, 2013
A new law will reveal more details about United States taxpayers who maintain accounts in the British Virgin Islands. Starting in 2014, the BVI will need to provide account information about US taxpayers in order to comply with the new legislation....

Tax Concerns When Modifying Trusts

Posted on: June 17th, 2013
In May 2013, the Internal Revenue Service issued a Private Letter Ruling addressing tax concerns resulting from a trust modification agreement. PLRs are issued when a taxpayer directly requests guidance from the IRS on a specific matter....

Top States for Domestic Asset Protection Trusts

Posted on: May 7th, 2013
Steve Oshin’s 2013 Annual Domestic Asset Protection Trust State Rankings were released and show the highest scoring state for DAPTs is Nevada....

Traditional IRAs: 3 Penalty-Free Withdrawals are Allowed Before Retirement

Posted on: March 4th, 2013
Traditional Individual Retirement Accounts (IRAs) may receive annual contributions up to $5,000 (as of 2013), and individuals over the age of 50 may contribute an additional $1,000. ...

More Estate Planning Opportunities Forecasted for Roth 401(k)s

Posted on: March 1st, 2013
A new study reveals more employers will offer Roth 401(k)s to their employees in 2013. About a third of all employers surveyed by Aon, a human resource services provider, have plans to add a Roth contribution option. ...

3 Asset Protection Tips for 2013

Posted on: January 27th, 2013
As North Carolina business owners and other taxpayers adjust to the effects of the 2012 American Tax Payer Relief Act, they are starting to focus on asset protection strategies at the same time as minimizing taxes to the fullest extent possible....

What the Fiscal Cliff Deal Means for Retirement Accounts

Posted on: January 13th, 2013
The fiscal cliff deal has not only affected income and estate taxes, but it has also changed how retirement rollovers are handled....

What Was Approved in the Fiscal Cliff?

Posted on: January 2nd, 2013
Taking every last minute available in 2012 and then some, yesterday Congress approved a bill that will reduce the nation’s deficit by raising taxes for high income earners. ...

Now is the Time to Consider Tax Issues as 2013 Draws Near

Posted on: November 21st, 2012
A recent press briefing with Press Secretary Jay Carney touched on tax issues that will affect every American in 2013. Right now, Americans are ill-prepared for the approaching drop off the “fiscal cliff.” As tax cuts are about to expire in the New Year, how will individuals be affected?...

Estate Tax Exclusion Amount for 2012 to Increase to $5,120,000

Posted on: October 20th, 2012
The IRS announced today that the amount exemption from estate taxes will increase next year. For an estate of any decedent dying during calendar year 2012, the basic exclusion from estate tax amount will be $5,120,000, up from $5,000,000 in 2011....

IRS Announces 2013 Tax Figures

Posted on: October 18th, 2012
In Rev. Proc. 2012-41, the IRS has announced various inflation-adjusted tax figures for 2013. Among them: ...

Higher Taxes are on the Horizon – 10 Planning Tips

Posted on: July 30th, 2012
Despite all the wrangling in Congress, we are still facing income and estate tax increases in 2013, now only five months away. ...

U.S. House Republicans Introduce Bill to Continue Bush Tax Cuts

Posted on: July 25th, 2012
The proposal provides for a continuation of the current income tax laws for one more year, preventing the scheduled expiration of the Bush tax cuts on December 31, 2012. ...

The New 3.8% Investment Surtax – Will it Apply to You?

Posted on: July 10th, 2012
Now that the health care law has been declared constitutional, the remaining provisions will be going into effect. One little known provision is a new 3.8% investment income surtax, also called the health care surtax or the Medicare tax; ...

Another Flip-Flop on Inherited IRA Stretch

Posted on: March 10th, 2012
Tax season is in full swing, and I was recently out of the office for a few days, so I’m a bit late in reporting this, but the provision to do away with the ability of most IRA beneficiary’s to stretch distributions over their life expectancies is now back on the table as part of the Senate Highway Bill. See Page 28 for details....

Senator Baucus Proposes Big Changes to IRAs

Posted on: February 9th, 2012
I’ve been a big proponent of planning to preserve the ability to "stretch" inherited IRAs over the life expectancy of the beneficiary, which allows for tremendous tax-deferred growth. In what came as a big surprise,...

Tax Related Duties of an Executor

Posted on: February 1st, 2012
I just came across this article, Closing Down the Estate, on SmartMoney.com. It gives a good overview of what an executor is responsible for from a tax perspective, but is by no means exhaustive. Since Executors can be personally liable for certain tax penalties, they should make sure to engage an experienced tax attorney or CPA to ensure that everything is done timely and correctly. ...

IRS Eliminates Innocent Spouse Two Year Limitation

Posted on: August 5th, 2011
From IR-2011-80, issued on July 25, 2011: The IRS launched a thorough review of the equitable relief provisions of the innocent spouse program earlier this year. Policy and program changes with respect to that review will become fully operational in the fall and additional guidance will be forthcoming. However, with respect to expanding the availability of equitable relief:...

NC 529 Plan Income Tax Deduction Continues

Posted on: June 30th, 2011
The North Carolina General Assembly recently passed legislation that preserves the deduction on NC 529 College Savings Plan contributions for all North Carolina taxpayers, regardless of income. ...

Tax Implications of Sale of Residence Upon Divorce

Posted on: June 24th, 2011
For many people, the federal home sale gain exclusion is the single most valuable tax break available. But if you’re getting divorced and selling a home, you may need to plan ahead to take advantage of the tax break. We’ll explain why, but first, here’s a little background information....

Separate Accounts for Your IRA Will Help the Beneficiaries

Posted on: May 25th, 2011
The distribution rules for inherited IRAs generally make it advantageous to have separate accounts, which can be done during your lifetime or by December 31 of the year following your death. ...

IRS Issues Interim Guidance on Fiduciary Fee Treatment re 2% Floor

Posted on: May 15th, 2011
The IRS has issued interim guidance on the treatment under Code Section 67 of investment advisory costs and other expenses subject to the 2-percent floor under Section 67(a). Notice 2011-37....

IRS Warns of 12 Current Tax Scams

Posted on: April 7th, 2011
WASHINGTON –– Hiding income in offshore accounts, identity theft, return preparer fraud, and filing false or misleading tax forms top the annual list of “dirty dozen” tax scams in 2011, the Internal Revenue Service announced today....

Missed Your IRA Rollver Deadline? All May Not be Lost

Posted on: March 27th, 2011
The IRS is often accused of being heartless, but it does show some compassion to taxpayers who cannot complete an IRA rollover within the deadline because of extenuating circumstances. ...

Decision Time is Here if You Did a Roth IRA Conversion in 2010

Posted on: March 22nd, 2011
The rule that made higher-income folks ineligible for Roth IRA conversions expired at the end of 2009. That made 2010 a big year for conversions, because even billionaires could make the transactions. ...

Health Care Reform – How it Will Affect Our Taxes

Posted on: March 20th, 2011
Health care reform doesn’t come cheap. How do we pay for it? More and increased taxes, of course, both this year and in future years, along with certain credits for health insurance premium costs. This is an outline of the many tax law changes as a result of the new health care laws, organized by affected parties and implementation date:...

IRS Says Beware of Frivolous Tax Arguments

Posted on: March 4th, 2011
WASHINGTON — The Internal Revenue Service today released the 2011 version of its discussion and rebuttal of many of the more common frivolous arguments made by individuals and groups that oppose compliance with federal tax laws....

IRS Offers 2nd Voluntary Disclosure Initiative for Offshore Assets

Posted on: February 8th, 2011
Today the IRS announced a new special voluntary disclosure initiative designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The initiative is available through Aug. 31, 2011....

Tax Law Changes in Obama’s Proposed 2012 Budget

Posted on: February 7th, 2011
Thanks to Keebler and Associates, LLP, CPAs for portions of this summary: Limit the tax rate that certain individuals will get a benefit for their itemized deductions - For investors filing joint returns and having income over $250,000 itemized deductions would only reduce the investor’s tax liability by a maximum of 28%. ...

RA Charitable Rollover is Back

Posted on: January 23rd, 2011
There’s good news if you’ve reached age 70 1/2, and you have an IRA and philanthropic inclinations. Through 2011, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 resurrected the opportunity to make cash donations to IRS-approved charities directly out of your IRA....

Don’t Pay more than 24.5% Tax on Your Roth Conversion

Posted on: January 13th, 2011
Do you think you have to pay income tax on large ($500k++) Roth IRA conversions at the top marginal tax rates? Think again. I have recommend the following strategy to several of my clients. In most cases, you can stay with your current investment manager....

Obama Signs 2010 Tax Relief Act

Posted on: December 17th, 2010
This afternoon, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This legislation, negotiated by the White House and select members of the House and Senate, provides for a short-term extension of tax cuts made in 2001....

More on the Middle Class Tax Cut Act of 2010

Posted on: December 4th, 2010
Senator Max Baucus, Chair of the Senate Finance Committee on Finance, introduced the "Middle Class Tax Cut Act of 2010" which would make the Bush income tax cuts permanent for those making under $250,000 per year. ...

2010 Executors – Are You Ready to Allocate that Basis?

Posted on: November 2nd, 2010
Today I was alerted to the existence of a draft of the IRS from that will be required to be filed for estates of decedents dying in 2010 with estates in excess of $1.3 million. IRS Form 8939 – Allocation of Increase in Basis for Property Received from a Decedent. The due date is April 15, 2011....

Retirement Accounts and Estate Tax Planning

Posted on: August 25th, 2010
Successful estate planning generally involves passing on your assets to your heirs at a low tax cost. To help achieve that goal, there are a few things to keep in mind about retirement accounts....

IRA Experts Keen On Roth Conversions

Posted on: August 21st, 2010
Three of four prominent IRA experts have either already utilized a Roth conversion or plan to do so, and the fourth says he plans to if the market gets even worse....

Roth IRAs offer Tax and Estate Planning Advantages

Posted on: August 4th, 2010
Roth IRAs are a great tax saving vehicle. The reason: Investments held in a Roth IRA are allowed to build up federal-income-tax-free. Later on, you can take federal-income-tax-free withdrawals. Obviously, a zero tax rate is the best rate going....

Take Advantage of Tax Deductions for CCRC Costs

Posted on: July 6th, 2010
You or someone you love may be ready for a retirement community living arrangement, which typically includes lifetime residential accommodations, meals, and some degree of medical services. These facilities can be quite expensive. The good news: Unexpected tax write-offs may help offset the cost....

Committee Chairs Reach Agreement on IRA Charitable Rollver and Tax Extenders

Posted on: May 22nd, 2010
Senate Finance Committee Chair Max Baucus (D-MT) and House Ways and Means Committee Chair Sander Levin (D-MI) announced that they have reached an agreement on continuing the IRA Charitable Rollover and many other tax saving extensions....

Update on Health Care Surtax

Posted on: March 22nd, 2010
The Reconciliation Bill (H.R. 4872), which passed the House and has gone to the Senate contains a 3.8% surtax on investment income for single taxpayers with modified adjusted gross income (MAGI) over $200,000, ...

Health Care Reform Will Bring Higher Taxes

Posted on: March 19th, 2010
The Health Care Reconciliation bill includes a new 3.8% Medicare tax on investment income, which includes IRA distributions, interest income (including tax exempt), dividends, capital gains, rental income and oil royalties. ...

Tax Court Rules Gender Reassignment Expenses Deductible

Posted on: February 3rd, 2010
On February 2, 2010, in Ododonnabhain v. Commissioner of Internal Revenue, the U.S. Tax Court held that a transgender woman’s expenses for hormone therapy and sex reassignment surgery were medically necessary and therefore deductible for federal income tax purposes. ...

Income Taxation of Estates – a Brief Overview

Posted on: January 30th, 2010
In North Carolina it is not uncommon for persons to handle administration of a decedent’s estate without hiring a lawyer or an accountant. ...

The Estate Tax is Gone (for Now) – Estate Plan Updates are Imperative

Posted on: January 4th, 2010
It’s 2010! As of January 1st, the federal estate tax is no more and it may mean that you should revise your estate plan and related documents. ...

Roth Conversions – Just Because You Can Doesn’t Mean You Should

Posted on: December 29th, 2009
Some financial advisors are warning against a Rush to Roth. The key to is to approach the idea cautiously and do a comprehensive analysis. ...

IRS Offers Tips for Year End Donations

Posted on: December 8th, 2009
From IR-2009-114 WASHINGTON — Individuals and businesses making contributions to charity should keep in mind several important tax law provisions that have taken effect in recent years....

The Truth about Frivolous Tax Arguments

Posted on: December 2nd, 2009
Have you ever heard a friend, neighbor, or colleague state that they had found a way to get around paying income taxes, or that certain taxes weren’t really legal? Don’t believe them – many people, including several wealthy actors, have gotten into trouble with the IRS that way....

MLPs Provide Income and Tax Benefits

Posted on: November 30th, 2009
This from Howard Hinds of the Curbstone Group in Boston: Master Limited Partnerships (MLPs) are excellent tools for estate planning: 1. MLP distributions (around 8% yield right now) are considered return of capital, meaning that distributions reduce your basis in the MLP, while allocated net income increases your basis....

The IRS Loves Retirement Accounts

Posted on: November 19th, 2009
Planning for tax-qualified plans, which includes IRAs, 401(k)s and qualified retirement plans, requires a careful examination of the potential taxes that impact these assets. Unlike most other assets that receive a “basis step up” to current fair market value upon the owner’s death, IRAs, 401(k)s and other qualified retirement plans do not step-up to the date-of-death value....

Tax Court: Gifts to your own Private Foundation are Deductible

Posted on: November 17th, 2009
This courtesy of Professor Chris Hoyt of the University of Missouri (Kansas City) School of Law: ...

IRS Provides Guidance on 2009 RMD Waivers

Posted on: September 25th, 2009
From IR 2009-85: WASHINGTON ― The Internal Revenue Service today provided guidance for retirement plan administrators, plan participants and retirees regarding recent legislation affecting required minimum distributions. ...

IRS Extends Deadline on Foreign Account Reporting

Posted on: September 21st, 2009
From IR-2009-84: WASHINGTON ─ The Internal Revenue Service today announced a one-time extension of the deadline for special voluntary disclosures by taxpayers with unreported income from hidden offshore accounts. These taxpayers now have until Oct. 15, 2009. ...

Often Overlooked in Estates – Cost Segregation Tax Savings

Posted on: September 6th, 2009
This is a complicated but potentially very worthwhile strategies to pursue in estate in which the decedent owned valuable depreciable real estate (e.g. office buildings, shopping centers, or multiple rental homes)....

Tired of Your CRT? Sell It!

Posted on: July 24th, 2009
If you set up a Charitable Remainder Trust (CRT) in the past but now wish you could get a lump sum back from the trust, it may be possible to sell your interest in the trust. ...

Intra-Family Loans – Make Sure You Follow the Rules

Posted on: July 11th, 2009
Loans among family members, especially from parents to children, are very common. However, most people are not aware of the tax laws regarding such loans. ...

Assignment of IRA by Estate to Charity is Not a Transfer

Posted on: July 8th, 2009
These are the facts from a recent Private Letter Ruling from the IRS: The Decedent had a "pour-over" will requiring that his probate estate be added to his living trust. ...

“Green Book” Proposals on Estate and Income Tax

Posted on: May 19th, 2009
President Obama’s Green Book contains proposals for modifying the GRAT rules, eliminating valuation discounts for transfers of interest in many family limited partnerships and limited liability companies, and increasing income tax rates and limiting deductions for high income taxpayers. ...

Tax Credit Options for First-Time Homebuyers

Posted on: March 18th, 2009
First-Time Homebuyers Have Several Options to Maximize New Tax Credit WASHINGTON — As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching,...

How Obama’s Budget May Affect Charitable Gifts

Posted on: February 27th, 2009
Probably an increase in 2010 and a substantial drop thereafter. From Professor Chris Hoyt of the University of Missouri (Kansas City) School of Law...

Expanded Tax Break Available for 2009 First Time Home Buyers

Posted on: February 25th, 2009
From today’s IRS Newswire: WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year....

Top 10 Facts About Taking Early Retirement Plan Distributions

Posted on: February 24th, 2009
From the IRS: If you took an early distribution from your retirement plan, here are some things you need to know:...

Teitell Urges More Favorable IRA Charitable Gift Rules

Posted on: January 12th, 2009
Conrad Teitell, one of the nation’s most foremost charitable gift planning attorneys, has, on behalf of the American Council on Gift Annuities and the National Council on Planned Giving, written Congress urging changes to IRA distribution laws:...

Finance Charity-Owned Life Insurance with your IRA

Posted on: January 5th, 2009
In a private Letter Ruling issued late in 2007, the IRS approved a clever technique to leverage a gift to your favorite charity using your IRA and life insurance. ...

Bush Signs Worker, Retiree and Employer Recover Act of 2008

Posted on: December 24th, 2008
This morning President Bush signed H.R. 7327, the “Worker, Retiree and Employer Recovery Act of 2008” (WRERA)....

Expatriates Beware – New Taxes Apply

Posted on: December 21st, 2008
Tired of all the taxes here in the good ole USA and thinking of moving to a tropical isle with little or no taxation?...

Required Minimum Distributions to be Suspended?

Posted on: December 12th, 2008
This update is courtesy of Barry C. Picker, CPA: It looks as if Congress has passed, and sent to Pres. Bush, H.R. 7327; Worker, Retiree, and Employer Recovery Act of 2008, ...

Bailout Includes IRA Charitable Rollover

Posted on: October 4th, 2008
​The Emergency Economic Stabilization Act of 2008 (H.R. 1424) passed the House yesterday, and was quickly signed by President Bush. ...

For Tithing or Other Gifts to Church – Get Valid Receipt

Posted on: August 1st, 2008
If you regularly give to your church, make sure you get an acknowledgment letter that complies with IRS regulations – otherwise you are not entitled to deduct the gifts. ...

Renewable Energy and Job Creation Act of 2008 Fails

Posted on: June 14th, 2008
The Renewable Energy and Job Creation Act of 2008, the latest version of legislation featuring several tax extenders, alternative minimum tax relief and energy provisions failed to pass the Senate. ...

IRA Charitable Rollover and Other Tax Extensions Passed by House Committee

Posted on: May 19th, 2008
The House Ways and Means Committee passed H.R. 6049, the Energy and Tax Extenders Act of 2008, on May 15, 2008. ...

Continuation of $100,000 IRA Charitable Rollover Proposed

Posted on: April 22nd, 2008
On April 17, Senators Max Baucus (D-MT) and Charles Grassley (R-IA) introduced a bill for 2008 and 2009 which would extend certain tax laws until December 31, 2009. ...

IRS Allows Favorable Gift Treatment for S Corp

Posted on: March 5th, 2008
This from Professor Chistopher Hoyt at the UMKC Law School, with good news for S Corporation owners:...

IRS Lists 4 New Frivolous Positions to Avoid

Posted on: January 17th, 2008
The IRS recently published a notice naming four new frivolous income tax claims: Misinterpretation of the 9th Amendment to the U.S. Constitution regarding objections to military spending....

IRS to Require Retirement Plans to Offer Non-Spousal Rollovers to IRAs

Posted on: October 27th, 2007
Beginning in 2008, retirement plans (such as 401(ks) must allow non-spouse beneficiaries to roll over to an IRA. The following is from Ed Slott, CPA:...

Tax and Other Aspects of Vacation Homes

Posted on: October 7th, 2007
Considering a second home? Read the Vacation Home Survival Guide on forbes.com. A couple things to keep in mind that aren’t mentioned are that second home in other states can trigger probate in that state,...

U.S. Supreme Court to Decide on Trust Investment Fees

Posted on: June 8th, 2007
On June 25 the U.S. Supreme Court agreed to hear a case on whether the investment expenses of trusts are fully deductible or subject to a 2% floor. ...

IRA Expert Ed Slott Recommends Standalone IRA Trusts

Posted on: April 20th, 2007
I recently attended a two day seminar by nationally recognized IRA expert Ed Slott, CPA. If the protection of a trust for IRA beneficiaries is desired, Slott says that the best way is to have the IRA paid to a Standalone IRA Trust. ...

New Charitable IRA Rollover Guidance

Posted on: January 15th, 2007
Professor Christopher Hoyt of the University of Missouri School of Law has proved a useful summary of IRS Notice 2007-7, 2007-5 IRB 1, which provides guidance about Charitable IRA Rollovers. ...

Owning Real Estate in an IRA

Posted on: November 19th, 2006
Owning real estate in a self-directed IRA can seem like a great way to save for retirement. However, I have found that most clients want to structure the ownership and/or management of the real estate in such a way that they will run afoul of the prohibited transactions rules. ...

Caveat Emptor – When it Comes to Out-of-State Tax Preparers

Posted on: October 8th, 2006
I recently had a client come in who had made a gift of over $120,000 to her brother several years ago, using funds that had originally come from their mother. She used the mother’s accountant in Florida to prepare her gift tax return. ...