Articles From Lumsden McCormick

Digital assets often leave no paper trail, making it crucial to include them in your estate plan to ensure your family can locate and access them. Take inventory of your digital assets, provide access instructions, and ensure your representatives have the necessary legal consent to manage these accounts; contact us for further assistance.

To avoid penalties on your next quarterly estimated tax payment, your business should aim to pay the minimum required estimated tax using one of four methods: the current year method, the preceding year method, the annualized income method, or the seasonal income method. 

Neglecting international holdings in estate plans may lead to dual taxation, as U.S. citizens face federal taxes on global assets which could also be taxed abroad. Although a foreign death tax credit might mitigate this, it’s not guaranteed, and professional advice should be sought.

Nonprofits should maintain accurate records and work to prevent fraud throughout the year to ensure timely and precise filing of Form 990, including Schedule G and foreign operations details, by the next IRS deadline.

When manufacturers purchase, build, or improve their facilities, the associated expenses are substantial. There is an alternative approach that allows you to accelerate your tax depreciation deductions: a cost segregation study.

The IRS has announced the inflation-adjusted limits for Health Savings Accounts (HSAs) for 2025. The annual contribution limits will increase to $4,300 for individuals with self-only coverage and $8,550 for those with family coverage. These adjustments help business owners plan and offer valuable tax-advantaged benefits to employees.

A Health Savings Account (HSA) offers affluent individuals a strategic way to reduce healthcare costs and federal taxes while enhancing their retirement savings and estate planning. HSAs allow tax-free withdrawals for medical expenses and provide unique benefits for beneficiaries, particularly spouses, allowing for continued tax-free growth and usage.

The Department of the Treasury and the IRS on April 25 released long-awaited final regulations (T.D. 9993) related to the transfer of certain credits under Internal Revenue Code Section 6418, added by the Inflation Reduction Act (IRA), which describes rules for the election to transfer eligible credits in a taxable year. 

When implementing new software solutions or tools, organizations must first lay the groundwork, assess and prepare for risks, leverage existing processes and technology, and develop a plan for the unexpected.

For business owners contemplating a transition from a C corporation to an S corporation, it’s important to be aware of the tax implications that could arise. Here are four key tax considerations to keep in mind during the conversion process.