
Tax Articles
Maximizing Retirement Benefits with SEP and SIMPLE Plans
Posted by Austin Robare on April 21, 2025
SEP and SIMPLE plans are retirement options designed for small businesses to simplify administration and reduce financial burdens. SEP plans allow employers to make discretionary contributions to employees' SEP-IRAs, while SIMPLE plans involve employer matching contributions based on employee salary reductions. Both plans offer unique advantages, including tax benefits and minimal IRS filing requirements.
Consider GST Tax When Transferring Assets to Your Grandchildren
Posted by D’Marie Kleeman on April 17, 2025
The GST tax is a federal tax that applies to transfers of assets to grandchildren or other skip persons, ensuring that large estates cannot bypass a round of taxation. Careful estate planning, including the use of trusts, is essential to allocate the GST tax exemption effectively and ensure tax-efficient transfers to younger generations.
Maximize Your Tax Savings This Summer: Hire Your Child and Benefit
Posted by Emily Isaacson on April 14, 2025
Hiring your child for your small business during the summer can offer significant tax benefits. You can transfer business earnings to your child to save on income taxes, reduce Social Security tax if your business isn't incorporated, and provide retirement savings options for your child. Additionally, this opportunity helps your child understand your business, earn extra money, and learn responsibility.
Decanting an Irrevocable Trust
Posted by D’Marie Kleeman on April 10, 2025
Decanting an irrevocable trust explains the concept of decanting, which involves transferring assets from one trust to another with different terms. This process allows trustees to update or adjust the terms of an irrevocable trust under certain conditions, making it a strategic way to modernize an inflexible trust and better serve long-term goals and beneficiaries.
Reporting Employment Taxes: Trust Fund Recovery Penalty (TFRP)
Posted by Alexander Intihar on April 07, 2025
Failing to comply with employment tax obligations can lead to severe consequences, including the Trust Fund Recovery Penalty (TFRP). This penalty imposes personal liability and financial hardship on business owners and responsible parties who willfully fail to collect, account for, and pay over employment taxes.
Family Dynamics of Disclosing Your Estate Plan
Posted by Robert Ingrasci on April 03, 2025
This article discusses the dilemma of whether to disclose estate planning details to family members, highlighting that the best approach depends on individual goals and family dynamics. It outlines the advantages, such as explaining wishes and streamlining estate administration, as well as the disadvantages, including strained relationships and encouragement of irresponsible behavior.
Navigating Tax Regulations for Real Estate Professionals
Posted by Michē Needham on March 31, 2025
Understanding whether you qualify as a tax-favored real estate professional can significantly impact your ability to deduct rental losses. Here we explain the general rules, exceptions, and criteria that define this status, including the eligibility criteria and material participation tests. We also highlight other exceptions for non-professionals and emphasizes the importance of utilizing available tax breaks to maximize deductions and minimize tax liability.
Understanding Stepped-Up Basis Rules for Inherited Assets
Posted by Cheryl A. Jankowski on March 27, 2025
Stepped-up basis rules can significantly reduce capital gains tax for heirs by adjusting the tax basis of inherited assets to their fair market value at the time of the original owner's death. This means that only the appreciation in value since the date of death is subject to tax, rather than the entire gain from when the asset was originally acquired.
Incentive Trusts: Aligning Wealth with Values
Posted by D’Marie Kleeman on March 20, 2025
Incentive trusts are estate planning tools that distribute wealth based on beneficiaries meeting specific conditions, such as pursuing education, maintaining employment, or avoiding harmful behaviors. While they can encourage positive actions, it's important to set realistic guidelines and communicate clearly with trustees to avoid potential conflicts or unintended consequences.
Inheriting A Family Home
Posted by Michael Anders on March 13, 2025
When inheriting a family home, siblings may face challenges due to differing financial needs and opinions on what to do with the property. Options include sharing the home, renting it out, selling it, or arranging a buyout, each with its own considerations and potential tax implications. Open communication and professional advice are crucial to navigate the emotional and legal complexities involved.