Do you need to file gift tax returns?
As the combined gift and estate tax exemption continues to increase, fewer families will be subject to federal gift taxes. If a person’s wealth is well within the exemption amount, does that mean he or she doesn’t need to file a gift tax return? This article examines situations in which it’s necessary (and desirable) to […]
Charitable IRA rollover eases tax pain of RMDs
One downside of contributing to a traditional IRA is that, once you reach age 70½, you must begin taking required minimum distributions (RMDs) — and pay taxes on those distributions — whether you need the money or not. But if you’re charitably inclined, you can use a qualified charitable distribution (QCD) to avoid taxes on […]
Kiddie tax: New hazards, new opportunities
Despite its name, the “kiddie tax” is far from child’s play. And a change made by the Tax Cuts and Jobs Act (TCJA) puts some adult teeth into the tax. Now, children with unearned income may find themselves in a tax bracket higher than that of their parents. At the same time, the TCJA creates […]
Taxable vs. tax-advantaged: Where to hold investments
When investing for retirement or other long-term goals, people usually prefer tax-advantaged accounts, such as IRAs, 401(k)s or 403(b)s. Certain assets are well suited to these accounts, but it may make more sense to hold other investments in taxable accounts. Know the rules Some investments, such as fast-growing stocks, can generate substantial capital gains. These […]
Business Repairs vs. Improvements
Business owners may think that, if they repair a piece of tangible property, they’ll qualify for an immediate tax deduction. But the IRS may define that “repair” as an “improvement,” and require the costs to be depreciated over a much longer period. This article explores the difference. Did you repair your business property or improve […]
Meal, travel and entertainment expenses: Know what’s deductible and properly substantiate
When owners, managers and salespeople attend trade shows, call on customers or evaluate suppliers, they may incur meal, travel and entertainment expenses. Many of these expenses may be deductible if they’re properly substantiated, but some of the rules have changed under the Tax Cuts and Jobs Act (TCJA). Entertainment expenses no longer deductible “Entertainment” expenses […]
Business Loss Deductions
Excess business loss rule may be unfavorable to you Sole proprietorships and pass-through entity structures, which include partnerships, S corporations and certain limited liability companies (LLCs), provide owners with some valuable tax benefits, such as avoidance of double taxation and the potential ability to deduct losses from the business on their individual tax returns. But […]
