Tax Reform has made a significant impact on estate planning—and the changes are as sweet as honey. The most buzz-worthy, amongst the swarm of differences, is the increase in the lifetime exemption amount, which doubled under Tax Reform. Something to Hum About Under previous law, the lifetime exemption was $5 million adjusted for inflation, meaning [...]
Filing a Section 83(b) Election could equal significant tax savings for you in the following 3 scenarios: founder of a new company without value, low valuation high expectations company stock, or company with potential liquidating event, as Kellie Shipley shares. Contact CRI for help making your move.
Do you know the difference between tax credits and tax deductions? And are you taking advantage of tax credits for actions you're already taking? Similar to deductions, tax credits incentivize individuals and businesses to reduce their overall tax liabilities. However, tax credits differ in that they provide a “dollar for dollar” reduction in [...]
As many business owners might tell you, there are times when business income and individual income can feel like two parallel universes co-existing in the cosmos. While they are closely related, passing through income from one to the other can seem as complicated as space travel itself. Lucky for you, recent changes within the Tax [...]
There are many new interesting aspects in the Tax Reform that may tug on individual taxpayers’ wallets. Here are highlights of three main areas potentially dividing dollars. 1. Alimony One area that seems to be falling under the radar is the impact on divorce settlements. For divorce or separation agreements executed after December 31, 2018, [...]
According to 2015 IRS statistics, approximately 30% of all taxpayers itemize their deductions. And with Tax Reform affecting many areas of the Tax Code, Schedule A and itemized deductions are no exception. If you have itemized deductions previously, or are considering future itemization, below are some of the significant changes and considerations when deciding what [...]
Debt is a reality for many Americans. Consider the following statistics from consumer information provider ValuePenguin: The average amount of credit card debt in America is $5,700. More than one-third of all American households have credit card debt. The total outstanding U.S. consumer debt is $3.9 trillion. Many individuals find themselves underestimating or ignoring their [...]
If you were fortunate enough to have not been impacted by hurricanes, tornadoes, wildfires, or other natural disasters this year, then why not consider making a charitable donation to the victims? There are several “smart” ways to make a contribution that will help provide disaster relief and also get you tax deductions and other rewards for your [...]
It can be startling to see terms that you do not recognize, particularly terms applying to taxes. Take a few minutes to familiarize yourself with these common tax terms so that they don’t spook you! 1. AGI Adjusted gross income (AGI) is the number you add to that very last box on Page 1 of your [...]
With that sigh of relief that the deadline to file your tax return—or request an extension—has passed you may also desire to purge some prior year documents such as receipts, canceled checks, and bank and brokerage statements. Follow these general retention tips for individuals and businesses as you head toward the blue skies of summer. [...]
Additional Articles in Series “Yours, Mine, or Ours?”: Determining Community and Separate Property in a Divorce “Yours, Mine, or Ours?”: 4 Income Tax Considerations of a Divorce The first part of our “Yours, Mine, or Ours?” series introduced Bob and Helen, a divorcing couple living in Texas. In the first meeting with [...]
Contrary to popular belief, tax extensions may be more likely to make the IRS smile than frown. Watch as Matt Zasada explains why filing an extension might be less risky than rushing to meet a deadline.
With an increase in charitable giving, the IRS has increased its focus on proper acknowledgement of donations and that charitable contribution documentation; specifically, cancelled checks and credit card statements are no longer acceptable receipts for tax purposes. Watch as Debbie Alexander and George Hawkins discuss adequate charitable contribution documentation for tax purposes and [...]
Well, they say that it is better to give than to receive, so how about choosing both simultaneously—now? For most of us, the tax benefits that are part and parcel of charitable donations can be a crucial component of our decision to give. And it’s always important to remember that there are creative ways to contribute; [...]