Category - Tax

The history and constitutionality of our federal tax system (by Jared Chatterton)

December 19, 2017

Here is the latest submission from my friend and accountant colleague, Jared Chatterton. As you will see, Jared is a nice blend of wisdom, expertise, and humor. Enjoy: Every tax season I encounter a random progressive buckaroo who strolls in to my office and with a confident drawl says – “I’m going to have you […]

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Tax reform update: postcard tax filings and sunset legislation

December 18, 2017

With the expected vote on and passage of the Tax Cuts and Jobs Act of 2017 (a/k/a TCJA and Trump Tax Cuts) later this week, perhaps it is time to review how closely the end-result matches some of the lofty promises made earlier in the process. By the way, I consider myself very much an “independent”

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Should you get your own captive insurance company?

December 12, 2017

Captive insurance has been around for a while, but micro-captive insurance structures are more recent in their invention and application. As with any other financial planning vehicle generally, and insurance product in particular, whether or not something is right in a certain circumstance greatly depends on said circumstance. In other words, despite what a very

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Tax reform bill passes Senate. One last hurdle remains

December 2, 2017

Early Saturday morning, the Senate Republicans pushed through their version of the tax reform bill by the closest of margins–i.e., a 51-49 vote. Job done? Nope. Now the Republican leaders from the House of Representatives and the Senate must get together to reconcile the differences between the bills each chamber of the legislature passed. Below

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LLC, Corporation and Partnership–legal and tax classifications

October 27, 2017

I was reading an excellent article this morning about why it usually is a bad idea to own rental properties in an S-Corporation. The article is well-written in most respects and does a good job walking through basic legal, accounting and tax planning situations. The general premise is sound–namely, that because of the application of tax […]

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New rules for partnership audits are effective January 1, 2018

October 26, 2017

The way in which the IRS audits partnerships will change at the end of 2017. Per the Bipartisan Budget Act of 2015 (great name, right?), on January 1, 2018 the landscape relating to partnership audits by the Internal Revenue Service will have shifted dramatically. Why should you care? Great question. If you are directly or […]

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Are distributions from a trust taxable?

October 19, 2017

Maybe. It depends. Taxable to who or what? You see, this is one of those simple questions that often does not have a simple answer. Let’s distinguish first between types of trusts, as this can make a big difference when it comes to answering the taxation of distribution question. Revocable Trust Distributions A revocable trust […]

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Step up in basis–what is it and why should you care?

September 24, 2015

Giving away real estate, stocks and other assets that have gained value over time while you are alive may become a costly mistake for the recipient of your gift. You have likely heard about tax basis and “step up in basis” but perhaps you do not fully understand what is meant by those terms. In […]

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Estate Tax Update: don’t get too comfortable with current levels of estate tax…

May 13, 2015

…at least not if President Obama and his administration have their way. As part of the latest 2014 budget proposal, the Obama administration is seeking to turn back to clock to 2009 regarding the maximum amount of assets permitted to pass free of estate tax, gift tax and GST. There are many important aspects to this […]

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August 6, 2013

After the death of a loved one, there is much concern about paying taxes. One of the first questions beneficiaries ask is, “Do I have to pay taxes on my inheritance?” In most instances, the answer is no. A beneficiary receiving inherited property, whatever the asset type, normally is not required to pay tax on […]

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