Your Guide to State, Local, Federal, Estate + International Taxation

Does your partnership have a foreign partner?

If you have a foreign partner in your partnership, you may need to pay a withholding tax on that partner. A partnership that has income effectively connected with a U.S. trade or business is required to pay a withholding tax on the effectively connected taxable income that is allocable to its foreign partners. A foreign …

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Section 199A: Does a rental real estate business qualify?

One of the most substantial changes to the tax code included with the Tax Cuts and Jobs Act (TCJA) is the ability (potentially) to deduct 20% of qualified business income (QBI). This is referred to as the Section 199A deduction and goes into effect for 2018. Section 199A is generally reserved for pass through income …

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Estate and gift exemption increases to $11.4 million in 2019

The IRS announced in Revenue Procedure 2018-57 that the 2019 gift tax annual exclusion will remain at $15,000 and the estate and gift exemption amount will rise to $11,400,000 per person, or $22,800,000 per couple, in 2019. In 2019, you can gift up to $15,000 to another person using the annual gift exclusion and without …

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Selling your car? Clear your personal data first

Is a new car on your wish list? Maybe you’re going to surprise a loved one with this huge gift. Car sales are big during the holidays and at year-end. But before you drive off the lot, don’t forget to wipe your old car of any personal data stored in the electronic system. Your car …

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Tax reform impact on the mortgage interest deduction

Prior to the Tax Cuts and Jobs Acts (TCJA), it was almost a given that owning a home was a great tax strategy thanks to the mortgage interest deduction and other tax benefits. After the passing of the TCJA, the decision to purchase a home requires more analysis. Several changes to the tax law indirectly …

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Roth IRA conversion: new tax law impact

Recently, I received a call from a client that is required to make minimum distributions (RMDs) from his traditional IRA. He wanted to know if he could satisfy his RMD requirement by converting an amount equal to the RMD to a Roth IRA. A Roth IRA conversion seems like a logical way of satisfying the …

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Section 199A rules for trusts and estates

There has been much to say about the new Section 199A deduction created by the Tax Cuts and Jobs Act (TCJA). It is important to understand that Section 199A provides a deduction of up to 20% of qualified business income (QBI) from a domestic business and applies to all non-corporate taxpayers including trusts and estates. …

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How to maximize your charitable giving

Are you maximizing your benefit to yourself and others with your charitable giving? There are many reasons to not name a charity in your will or trust – the benefits are often greater by incorporating charitable giving elsewhere. Lifetime giving There are many benefits to gifting to charities during your lifetime rather than waiting until …

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Business taxes: year-end tax planning checklist

With year-end rapidly approaching, below are a few reminders for business taxes. These changes and strategies may affect your business in 2018. Be sure to discuss these with your tax professional! Biggest change in 2018? The 20% deduction offsetting income from Partnerships, LLCs, S Corps, self-employed (Schedule C) and rental businesses. The 20% deduction is …

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Tax planning: 2018 year-end checklist

Only one month remains in 2018, but you still have time to think about your 2018 taxes. Consider if these tax planning items could affect you and your family. Will you claim the standard deduction or itemize in 2018? The standard deduction has gone up to $12,000 for single filers and $24,000 for married filing …

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