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Future Returns: Turning Low Stock Prices Into a Plus for Estate Planning

A bear market in stocks may be painful, but it can create the right circumstances for estate planning. Last year, U.S. stocks reached bear market territory, which is defined as a drop of 20% in value from recent record highs. The markets aren’t out of the woods just yet, with the Dow Jones Industrial Average down 4% for the year through Monday and the broader S&P 500 up a slight 0.42%, according…

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#gift and estate tax planning

Grantor Trust: Tired Of Paying Income Tax On Trust Income?

Grantor trusts are groovy. They have so many potential benefits that they are the cornerstone of many, maybe even most estate plans. Grantor trusts let you transaction business with your trust without triggering gain for income tax purposes. Rev. Rul. 85-13. So, you can sell your family business or rental real estate to the trust and pay not capital gains tax. Why would you want to do that?…

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#IDGT; Grantor Trusts

With Rising Interest Rates, Charitable Remainder Trusts Are Gaining Popularity

Every taxpayer’s financial situation is unique, and some donors may be looking for a more sophisticated approach to charitable giving. A charitable remainder trust (“CRT”) can be an effective tool for accomplishing your philanthropic goals while also creating a source of income for yourself and your family. CRTs may qualify for a partial charitable deduction, provide a predictable income stream,…

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#CRT

WISHING ALL A HAPPY AND HEALTHY NEW YEAR

HAPPY AND HEALTHY NEW YEAR TO ALL

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Chart Shows Estimated 2023 IRS Tax refund dates – When Will You Get Your Refund?

It’s still a bit too early to think about it, but in case you are wondering, here’s our annual chart for the #1 question we get every year: “When will I get my tax refund?” The answer is never exact, but we are able to make some educated guesses based on a few factors. If you’ve had major income changes this year, had a child, got married or divorced, retired, bought a house, or changed…

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#income tax refunds

Getting Out | Expatriation And Federal Taxes

Are you U.S. citizen or resident? Have you ever just wanted to leave the whole U.S. federal tax system behind? Well, you can . . . try at least. But there’s a cost. The Problem U.S. citizens and residents are subject to federal income tax on their worldwide income.1 They’re subject to federal estate tax based on all assets wherever located upon death.2 And, they’re subject to gift tax on the…

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#United States Income Tax

15 States Where the Most Estate Taxes Were Paid in 2021

In tax year 2021, 2,584 American taxpayers paid $18.4 billion in estate taxes after allowable deductions and state death tax deductions, according to recently published federal estate tax data from the Internal Revenue Service. < p style=”margin: 0px 0px 15px; padding: 0px; transition:color 0.15s, background-color 0.15s, border-color 0.15s, opacity 0.15s; color: rgb(16, 16, 16); text-transform:…

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#estate tax

Year-End Tax-Planning Tips For 2022

The year is almost coming to a close. With the few months left in 2022, here are a few basic planning tips that can help you minimize taxes. It is recommended that you consult with a tax professional for more detailed and customized guidance. Make sure you paid enough taxes for the year. No one wants to see a surprise tax bill in April, so now would be the best time to check to see if you are…

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#income tax planning

IRS bumps up estate-tax exclusion to $12.92 million for 2023. Here’s what that means for wealthy Americans

Ultra-wealthy Americans can soon protect more assets from federal estate taxes, the IRS announced this week. Starting in 2023, individuals can transfer up to $12.92 million to heirs, during life or at death, without triggering a federal estate-tax bill, up from $12.06 million in 2022. Since married couples may share exclusions by electing portability, their combined limits are double, allowing…

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#estate tax exclusion

IRS sends letters to over 9 million who could miss out on valuable 2021 tax credits. Here’s how to claim that money

More than 9 million individuals and families could be leaving money on the table by not filing a 2021 federal tax return, according to the IRS. Last week, the federal tax agency began sending letters to those people it had identified who could be missing out on payments through tax credits that could put money in their pockets. That money includes the third round of stimulus checks worth $1,400…

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2023 will bring greater potential for estate and gift tax savings

US Taxpayers enjoy a lifetime gift and estate tax exemption. This is the amount a person can transfer at death or during life without triggering a transfer tax. The exemption amount for 2023 is set to rise $860,000 to $12,920,000 per person ($25,840,000 per married couple) from the 2022 figure ($12,060,000 per person, $24,120,000 for a married couple). Moreover, taxpayers can use an “annual…

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How The Ultra-Wealthy Protect Their Money Using 'Defective' Trusts

How The Ultra-Wealthy Protect Their Money Using ‘Defective’ Trusts

An intentionally defective grantor trust, or IDGT, is a way of shifting tax burdens for very wealthy households. With this structure, you can create a trust that leaves wealth to your heirs while minimizing gift, estate and income tax liability. Find out how the IDGT works and what tax advantages may exist if you decide to create one. A financial advisor can walk you through all of the ins and…

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Estates can now request late portability election relief for 5 years

he IRS issued a revenue procedure (Rev. Proc. 2022-32) Friday that allows estates to elect “portability” of a deceased spousal unused exclusion (DSUE) amount as much as five years after the decedent’s date of death. Estates of decedents dying after Dec. 31, 2010, who are survived by a spouse, if not required to file an estate tax return, may do so under Sec. 2010(c)(5)(A) for the sole purpose of…

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How to File a Final Tax Return for a Person Who Has Died

After a loved one passes away, the person in charge of settling the deceased’s estate is responsible for filing a final individual income tax return and the estate tax return when due. According to the IRS, you will need to file Form 56, Notice Concerning Fiduciary Relationship, to notify the agency of a fiduciary relationship. The fiduciary (trustee, executor, administrator, receiver or…

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How To Pay Taxes As An Independent Contractor: The Complete Guide

What Is an Independent Contractor? An independent contractor is a self-employed person or small business owner who performs services for another person or entity. Independent contractors aren’t employees of the people or businesses they provide services for. They may or may not have written contracts spelling out the services they’re supposed to perform and their compensation for those…

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#income tax #Independent Contractor

To Fix Tax Returns Electronically

Taxpayers who would rather crawl through broken glass than call the IRS about an amended return got some cheery news last week: More tax forms can now be amended electronically. See: https://www.gobankingrates.com/taxes/filing/irs-allowing-taxpayers-to-fix-returns-electronically/

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Ankeny Man Sentenced to 18 Months in Federal Prison For Failing to File Income Tax Returns

DES MOINES, IA – Kevin Jeffrey Stiller, age 59, of Ankeny, was sentenced Tuesday, June 7, 2022, to 18 months in prison for failing to file income tax returns. Stiller pleaded guilty on February 3, 2022, to two counts of failure to file income tax returns, one for each of the calendar years 2015 and 2017. Senior Judge James E. Gritzner imposed a 9-month prison sentence on each count, to be served…

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