The Myths & Realities Of Estate Planning 2009cpwalmsley
In this presentation I debunk some common misconceptions with estate planning. This knowledge and more is available to my clients. Audio will soon be added.
The Myths & Realities Of Estate Planning 2009cpwalmsley
In this presentation I debunk some common misconceptions with estate planning. This knowledge and more is available to my clients. Audio will soon be added.
What Is The Federal Estate Tax Marital DeductionMark Eghrari
When you are planning your estate, you should be aware of of the existence of the federal estate tax which can significantly erode assets that you are passing on to your loved ones. Learn more about federal estate tax in this presentation.
The IRS defines a home as any house, condominium, cooperative,
mobile home, boat, or similar property that
has sleeping space, toilet facilities, and cooking facilities.
Homeowners may qualify for the following deductions.
How did tax get so complex? In the 1950s Australia had a tax system made up of around 1080 pages of tax law.
Since then, Governments have identified gaps, addressed omissions, and attempted to adapt the tax system to changes in business and society.
Our tax system is now a complex patchwork of rules.
Highlights of the Final Tax Cuts and Jobs ActSarah Cuddy
The combined tax reform bill includes plans to lower tax rates on individuals and businesses and change many deductions. Those hoping for tax simplification, however, may be disappointed.
What Is The Federal Estate Tax Marital DeductionMark Eghrari
When you are planning your estate, you should be aware of of the existence of the federal estate tax which can significantly erode assets that you are passing on to your loved ones. Learn more about federal estate tax in this presentation.
The IRS defines a home as any house, condominium, cooperative,
mobile home, boat, or similar property that
has sleeping space, toilet facilities, and cooking facilities.
Homeowners may qualify for the following deductions.
How did tax get so complex? In the 1950s Australia had a tax system made up of around 1080 pages of tax law.
Since then, Governments have identified gaps, addressed omissions, and attempted to adapt the tax system to changes in business and society.
Our tax system is now a complex patchwork of rules.
Highlights of the Final Tax Cuts and Jobs ActSarah Cuddy
The combined tax reform bill includes plans to lower tax rates on individuals and businesses and change many deductions. Those hoping for tax simplification, however, may be disappointed.
With the passage and implementation of the Tax Cuts and Jobs Act (TCJA), comes a lot of changes for taxpayers to wrap their heads around – but we’re up to the challenge.
Even with all the information floating around these days, it’s easy to overlook or misinterpret how the law works. Don’t worry; with this presentation, we'll provide you the important tips and insights surrounding this law.
Attached is an excellent, easy to read newsletter summarizing the important changes, legislative extensions, and issues relating to your individual tax return for 2009 and beyond. Please read it well before 12/31 as there are items that need to be considered or acted upon before the end of this year to take full advantage of the legislation. It’s the best one I’ve come across. Its current and includes some commentary, planning suggestions, and even some health care issues as they relate to your taxes.
I will later post a copy of year end letters for both businesses and individuals that my clients receive.
If you should have any questions at this time on any of these items, please contact me anytime.
Thanks
Wally Wleklinski
Thanks to Ulster Savings Bank for hosting this event, guest speaker Jonathan Gudema of Planned Giving Advisors and to all of our participants for joining us to learn more about the impact of the new tax law on charitable giving.
What does the new Tax Cuts and Jobs Act mean for you? Our January Investment Insights explores the key points of the most significant overhaul of the tax system since '86, reviewing the new tax brackets, deductions and exemptions, and the effects on the economy.
Mercer Capital's Value Matters™ | Issue 2 2021 Mercer Capital
Mercer Capital's Value Matters™, published 4 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
Proactive Year-end Financial and Tax Planning StrategiesAICPA
In the third webcast in the AICPA Insights Live webcast series, Beth Gamel, CPA/PFS, Robert S. Keebler, CPA, Ted Sarenski, CPA/PFS and Scott Sprinkle, CPA/PFS, CGMA came together to discuss year-end financial and tax planning strategies, specifically to address the American Taxpayer Relief Act and the Net Investment Income Tax. Below you can find an audio recording from the webcast, as well as the accompanying presentation. Be sure to explore the other webcasts in the AICPA Insights Live webcast series.
1. What’s the Fiscal Cliff?
Working out a compromise on fiscal policy and our rising debt, or
“going over the cliff” by taking no action.
According to the New York
Times, “the nonpartisan
Congressional Budget Office
estimated that the entirety of
the so-called fiscal cliff would
shave about three percentage
points off gross domestic
product growth” for this year.
That outcome has been
prevented, and the housing
market is predicted to
improve.
2. Business Tax Items
Permanently extends the 2001 - 2003 tax rates for adjusted
gross income levels under $450,000 or $400,000 single
Verdict: Thumbs up for small businesses and home builders
that are pass through entities paying taxes on the individual side
of code. It’s estimated that 80% of builders, contractors, and
supplies fall in this category
Protects small businesses from tax hikes and keeps 15% rates for capital
gains and dividends for income levels under 450,000 ($400,000 single)
3. Business Tax Items
Permanently extends the Alternative Minimum patch
Verdict: Good for small businesses who are at risk for paying AMT. In a
typical tax year, it’s estimated that about five million taxpayers are subject
to AMT.
Prevents many small businesses facing higher tax liability.
AND
Protects housing deductions and credits such as the real estate tax
deduction and the 25C energy efficiency tax credit from shrinking in value.
4. Business Tax Items
Extends present law section 179 small business expensing
through the end of 2013
Verdict: Good for small firms via cash flow and administrative
cost benefits.
Increases the maximum amount of depreciation and the income phase-out
threshold in 2012 and 2013 to levels in effect in 2010 and 2011 (500,000 and $2
million, respectively).
5. Business Tax Items
Permanently sets the parameters of the estate tax
Verdict: Positive for family-owned construction firm, because
higher exemption amounts protect many small businesses.
Extends the $5 million (indexed to inflation) exemption amount
AND
Raises the rate of tax to 40% for estate value above the
exemption amount.
6. Business Tax Items
Extends the section 45L new energy-efficient home tax
credit through the end of 2013
Verdict: Thumbs up for green builders.
Allows a $2,000 tax credit for the construction of for sale and for-
lease energy-efficient homes in buildings with fewer than three
floors above grade
7. Home Owner Tax Items
Extends through the end of 2013 mortgage debt tax relief.
Verdict: Good for distressed households and the housing market.
Prevents tax liability from short sales or mitigation workouts involving deferred or canceled
mortgage debt.
AND
Enables more short sales to move forward and reduce downward pressure on home prices.
Without this a homeowner who owes $150,000 on
the mortgage and short sells for $100,000 would
have been taxed on the $50,000 difference as
income, placing them in a higher tax bracket.
8. Home Owner Tax Items
Deduction for mortgage insurance extended through
the end of 2013
Verdict: Helpful for first-time home buyers and the middle
class
Reduces the cost of buying a home when paying private mortgage insurance as
well as insurance provided by the Federal Housing Administration, the Veterans
Affairs and the Rural Housing Service.
HOWEVER
The tax break only applies to those with AGI under $110,000.
9. Home Owner Tax Items
Extends the section 25C energy-efficient tax credit for
existing homes through the end of 2013
Verdict: Important remodeling incentive, particularly helpful
for remodelers and households looking to upgrade their home.
10 percent tax credit with a lifetime credit cap at $500.
HOWEVER
Combined with local tax incentives (check your local energy
provider) and energy savings, it can go a long way.
10. Home Owner Tax Items
Reinstates the Pease/PEP phase outs for deductions.
Verdict: The Pease rule will affect only a very small number of households who
use the mortgage interest deduction, in which the rule will reduce the value of
itemized deductions, such as for charitable giving and mortgage interest.
For taxpayers with AGI above $300,000 ($250,000 single) reduces total itemized deductions
by 3% per dollar amount above the thresholds.
For example, a married couple with a $350,000 AGI would
be $50,000 above the limit and must reduce their Schedule
A deduction total by $50,000 multiplied by 3%, or $1,500.
This would raise their taxes by about $500.
11. Multifamily Tax Items
Extends the 9% Low Income Housing Tax Credit (LIHTC)
rate for allocations through the end of 2013
Verdict: Helpful for low income families.
Absent the credit fix, the LIHTC program would suffer a loss of
equity investment for affordable housing projects.
12. Multifamily Tax Items
Extension through the end of 2013 of base housing
allowance rules for affordable housing.
Verdict: This extension will ensure more equity can go into
any one given project and increase the financial viability of
Housing Credit deals.
The military’s basic housing allowance is not considered income for
purposes of calculating whether the individual qualifies as a low-
income tenant.
13. To be continued…
It’s not quite over. Coming in February, decisions over
the debt ceiling and the delayed sequester will be
determined.
But for now, let’s enjoy the housing market’s progress.