Tax Articles

When deciding whether to give to charity now or later, it's important to weigh personal financial circumstances, tax implications, and the potential impact of your gift. Giving during your lifetime allows you to see the results of your generosity, while planned giving can ensure long-term support for causes you care about. Each approach offers unique benefits depending on your goals and legacy plans.

The One Big Beautiful Bill (OBBB) Act, signed into law on July 4, 2025, makes permanent several provisions from the Tax Cuts and Jobs Act while introducing new deductions, such as for tips and auto loan interest, and expanding the child tax credit. It also raises the standard deduction and estate tax exemption, but eliminates green energy credits and personal exemptions, reshaping tax planning for individuals.

The One, Big, Beautiful Bill Act introduces a range of impactful tax changes for businesses, including the permanent return of 100% bonus depreciation, expanded Section 179 expensing, and immediate deductions for domestic R&E expenditures. It also enhances credits for employer-provided child care and paid family leave, while phasing out several clean-energy tax incentives. Some less favorable provisions, such as the permanent disallowance of excess business losses, also take effect.

The One, Big, Beautiful Bill Act permanently raises the federal gift and estate tax exemption to $15 million per individual, providing long-term clarity for estate planning. High-net-worth individuals can now implement strategies like SLATs and SPATs to reduce estate tax exposure while maintaining access to their wealth. These tools offer flexibility and protection, making them valuable components of a modern estate plan.

Republicans have successfully passed a comprehensive reconciliation bill, marking a significant legislative achievement. This bill encompasses a wide range of policy changes and reforms, reflecting the party's priorities and goals.

Manufacturing companies expanding across borders must understand transfer pricing to value intercompany transactions and comply with tax regulations. Proper documentation and adherence to IRS and OECD guidelines are crucial to avoid penalties and ensure accurate tax reporting. Proactive management of transfer pricing can also optimize global tax positions within legal boundaries.

New business owners can deduct up to $5,000 in startup and organizational costs, but only if total expenses stay under $50,000. Any remaining costs must be amortized over 15 years, and deductions can only begin once the business is actively operating. Careful planning and recordkeeping are essential to maximize tax benefits for new business ventures.

Avoiding probate in estate planning is crucial for ensuring a smoother and more efficient transfer of assets to beneficiaries. It helps to minimize legal costs, reduce delays, and maintain privacy for the estate and its heirs. Proper planning can significantly ease the burden on loved ones during a difficult time.

A recent U.S. Tax Court case highlights how poor documentation can lead to the disallowance of business expense deductions, including meals, supplies, and home office costs. The taxpayer failed to provide sufficient evidence linking the expenses to her business, underscoring the importance of maintaining accurate and timely records.

Qualified Charitable Distributions (QCDs) allow individuals 70½ or older to make tax-efficient donations directly from their IRAs to nonprofits, helping satisfy required minimum distributions while reducing taxable income. Recent updates under the SECURE 2.0 Act have expanded QCD limits and introduced new giving options offering donors more flexibility and nonprofits greater fundraising potential.