The Sensible Taxation and Equity Promotion (STEP) Act would get rid of what’s known as the step-up in basis to tax the unrealized gains of certain estates at death.
Step-up in basis refers to the way the value of an asset is readjusted for tax purposes upon inheritance.
One common mistake that we see homeowners make is failing to take advantage of the “Homeowner Exemption” on their annual real estate taxes.
Like any real property, a home is subject to annual real estate taxes that are assessed and collected by local governmental authorities. Homeowner exemptions can
In light of the increased basic standard deduction for income tax returns, many people whose annual charitable giving and other itemized standard deductions do not reach the itemization threshold are considering ways to continue to financially support their church or organization. One idea is for individuals to make a large gift of appreciated stock “in-kind” … Read more
If you are age 72 (or turn age 72 this year), you are required to take minimum distributions (“RMDs”) each year from your regular IRA and you have to pay income tax on those distributions. However, individuals who choose to make qualified charitable distributions (“QCDs”) which reduce the amount they are required to withdraw by … Read more
Following the Tax Cuts and Jobs Act (TCJA), many taxpayers are concerned about losing tax breaks for charitable contributions. Under the law, fewer households have a tax incentive to make charitable gifts. With planning, however, individuals and businesses can still benefit from donations. The law increased the standard deduction to $12,000 for individual filers and … Read more
Generally, people don’t think about a Health Savings Account (HSA) as a savings account. The HSA was intended to be a tax-advantaged account to pay for medical expenses, but in certain ways it’s better than an IRA. An HSA is a tax-preferred investment account with triple tax advantages. Your money isn’t taxed when it’s contributed, … Read more
When you inherit a home and sell it, you pay capital gains tax based on increase the value of the home after the date of the owner’s death. For example, if you inherit your dad’s vacation cabin, and it was worth $300,000 when he died, and you later sell it for $325,000, you’ll pay tax … Read more
With the cost of college tuition rising, some grandparents are pitching in. Grandparents who want to help out have several options, but many come with limitations or possible pitfalls: With the cost of college tuition rising, some grandparents are pitching in. Grandparents who want to help out have several options, but many come with limitations … Read more
Included in the Tax Cuts and Jobs Act was a provision that disallowed tax deductions for settlements between federal agencies and companies accused of wrongdoing.
In June, a group of restaurants, retailers, and industry associations sent a letter to lawmakers asking them to correct a mistake in the Tax Cuts and Jobs Act (TCJA). The law inadvertently increased the tax burden on a category of business investment called Qualified Improvement Property (QIP).