Tax Articles

Long-term care insurance is a valuable tool for protecting your estate and finances from the potentially high costs of nursing homes or in-home care. Key considerations include your financial situation, estate planning goals, age, and health, with premiums typically rising as you age. Consulting with an advisor can help you assess the best LTC options to secure your future needs and preserve wealth for your family.

A solo 401(k) is an excellent retirement savings option for self-employed individuals and small business owners with no employees, offering high contribution limits and tax savings. With flexible contributions and loan options, this plan allows for substantial, deductible retirement investments. However, solo 401(k)s require more administrative work, making them best suited for business owners with significant income and a commitment to maximizing retirement savings.

For business owners considering selling their companies, having a clear succession plan is crucial.

A buy-sell agreement is essential for business owners, ensuring an orderly transition of ownership in the event of death, disability, or other major changes. This agreement defines how a departing owner's interest is valued and purchased, often funded by life insurance, and provides flexibility to keep ownership within the family or provide liquidity for estate expenses. Regular reviews keep the agreement aligned with current business value and tax regulations, preserving the business's legacy for future generations.

On September 18, the IRS and the Treasury Department released proposed regulations regarding the credit for qualified alternative fuel vehicle refueling property under IRC Section 30C.

In 2025, the Social Security wage base will rise to $176,100, increasing payroll tax obligations for employers with high earners. Employers and self-employed individuals will continue to pay FICA taxes at the same rates, with Social Security tax capped at the new wage base and no cap for Medicare. Businesses should plan for these changes and consult for compliance guidance.

A defined-value gift can help maximize the current federal gift and estate tax exemption by transferring hard-to-value assets, like business interests, at a specified dollar amount. This strategy, if structured with precise language and a formula clause, can reduce tax risks by aligning the gift’s value with IRS standards. Consulting with an advisor ensures proper documentation and minimizes potential IRS challenges.

On June 27, the California legislature enacted California Revenue and Taxation Code (CRTC) section 25128.9 under S.B. 167.

Maine has amended Title 36 of the Maine Revised Statutes pertaining to the sales tax treatment of lease and rental transactions in the state.

California has enacted two important pieces of legislation that may prove adverse to businesses and individuals.