Transfer tax and foreign tax figures are among those that are adjusted annually for cost-of-living increases. Thomson Reuters Checkpoint has calculated these figures for the year 2021 using the chained Consumer Price Index from August 2020. Don’t miss: Reasonable compensation for S-Corporation shareholder employees The annual gift tax exclusion will remain at $15,000 and the …
If a loved one dies, are you responsible for his or her unpaid debts? The FTC Consumer information website includes helpful information about dealing with the debts of a deceased relative. While FTC’s information is great – here’s my best advice: Check with an Attorney! An attorney can help you navigate the process and deal …
According to The Project on Student Debt, the average student debt at graduation in 2018 ranged from $19,750 in Utah to $38,650 in Connecticut, and new graduates’ likelihood of having debt ranged from 36% in Utah to 76% in New Hampshire. While the job market is bright, this much debt makes it very difficult for …
When the Tax Cuts and Jobs Act (TCJA) was passed, it prohibited individual taxpayers from claiming miscellaneous itemized deductions for any taxable year beginning after 12/31/2017 and before 01/01/2026. After two years, the IRS has finally issued proposed regulations to clarify how the rules on miscellaneous deductions apply to trusts and estates. Don’t miss: What …
Even though estate taxes don’t affect many people, they have been a hot topic in the political realm after the Tax Cuts and Jobs Act doubled the lifetime exemption. Here’s more on the history of estate tax rates. Don’t miss: Inherited IRAs The estate tax exemption has seen some extremely significant changes since it was …
There are some provisions in the CARES Act that are not getting a lot of play right now – probably because it is not immediate money in business or individual’s hands. Through charitable donations, CARES Act money can be money for nonprofit organizations, though. Don’t miss: CARES Act clarification for trustee/plan sponsors So while we …
IRS updated frequently asked questions on virtual currency transactions and provides guidance on capital gains when selling or gifting virtual currency.
The IRS announced in Revenue Procedure 2019-44 that the 2020 gift tax annual exclusion will remain at $15,000 and the unified estate tax and lifetime gift exclusion amount will rise to $11,580,000 per person or $23,160,000 per couple in 2020. Read more about the estate and gift exemptions increase below! In 2020 any person can …
Many couples acquire partnership interests during marriage that generate large passive losses. If they don’t have enough passive income to offset these losses, the losses are suspended under the passive activity rules. For couples residing in a community property state, the losses are deemed to be owned 50% by husband and 50% by wife. Don’t miss: …
If you are planning to make a contribution to a charity, you should consider donating appreciated stock from your investment portfolio instead of cash. Why? You get a deduction for the donation AND avoid tax on the appreciation in value of the donated property. This planning tool is derived from the general rule that the …