Category: News

The Tax Cuts and Jobs Act of 2017 Brings Changes to “Kiddie Tax”

Posted Wednesday, March 14th, 2018
Since 1986, the “Kiddie Tax” has been in place to close a loophole through which some taxpayers were getting investment income taxed at lower rates by transferring assets to their children.  Under the rule between 1986 and 2017, unearned income (stock dividends, interest, and capital gains) gets separated out for any children in the family. If this unearned income exceeded…

How the New Tax Bill Affects High-Income Taxpayers

Posted Friday, February 2nd, 2018
On January 1, 2018, the most significant overhaul to the Internal Revenue Code in decades took effect.  High-income taxpayers stand to benefit from lower tax brackets, higher estate tax exemptions and a less stringent alternative minimum tax.  However, high-income earners face new limitations on some favored deductions and notable revisions in charitable write-offs. Some of the most noteworthy changes are…

Trust and Estate Distributions Before March 6, 2018 Can Reduce Taxes

Posted Tuesday, January 9th, 2018
A trustee may be able to reduce income taxes by making a distribution of income from a trust to beneficiaries by March 6, 2018.  Similarly, an estate that reports its income on the basis of a calendar year may be able to reduce income taxes by distributing income to one or more beneficiaries by March 6, 2018. Trust or estate income that…

Estate Planning Opportunities for 2018

Posted Monday, December 18th, 2017
The increased exemptions from estate, gift, and GST tax until 2026 under the soon-to-be enacted tax legislation create a window for significant tax planning and wealth transfer planning. Taxpayers with substantial assets that are able to give away assets during life are especially well positioned to take advantage of the new tax laws.  Some of the strategies that our firm…

Tax Reform Legislation Retains Estate and Gift Tax

Posted Monday, December 18th, 2017
  After months of uncertainty, the Senate and House of Representatives agreed on tax reform legislation that includes keeping the estate and gift tax, but with an increased exemption amount.  Under the Conference Committee’s proposed legislation, the lifetime exemption for estate and gift tax will increase to $11.2 million per person effective January 1, 2018. The exemption amount will adjust…

Tax Reform and 2018 Transfer Tax Exemptions

Posted Wednesday, December 6th, 2017
The House and Senate are negotiating the final details of tax reform legislation, but it appears the federal gift, estate, and generation-skipping transfer (“GST”) taxes will remain in place to some extent. Without any changes to the law, the lifetime exemption will rise to $5.6 million per person and the annual exclusion will rise to $15,000 per recipient per year.…

2017 Year-End Tax Planning for Individuals

Posted Tuesday, December 5th, 2017
The successful passing of tax reform bills by the House and the Senate ensures that in 2018 taxpayers will face new tax laws and new opportunities.  However, because the final tax reform legislation is extremely unlikely to apply retroactively to the beginning of 2017, taxpayers should consider year-end tax planning for 2017 under the current tax laws.  Individual taxpayers can…

While Waiting for Tax Reform, Don’t Forget to Make Year-End Annual Gifts

Posted Tuesday, December 5th, 2017
By December 31, you may use your “annual exclusion” by giving $14,000 free of gift tax to as many individuals as you wish without using any of your $5.49 million lifetime exemption from gift and estate tax.  Spouses can combine their annual exclusion amounts to make gifts of $28,000 per donee, subject to certain gift tax reporting rules.  Because annual…

Anticipating Changes to Partnership Audit Rules Coming in 2018

Posted Tuesday, December 5th, 2017
Congress has recently made substantial changes to the tax audit procedures for partnerships and some LLCs taxed as partnerships.  These changes are far-reaching, and every partnership and LLC taxed as a partnership should examine the provisions of its governing agreement to determine if changes should be made.   Under previous law, when the IRS audited and assessed deficiencies against partnerships…