The Tax Cuts and Jobs Act increased the standard deduction to $12,000 per person and $24,000 per couple (for 2018 and inflation-adjusted thereafter). This was great news for those who don’t itemize their deductions. However, for those itemizing deductions, there was some bad news in the new law, too. The law included a cap of $10,000 (not inflation adjusted) for state and local taxes (“SALT”), such as state and local income and real property taxes. The $10,000 limitation is the same for single … [Read more...] about SALT Deduction Limit…Can You Get Around It?
New Tax Proposals
Representative Alexandria Ocasio-Cortez (D-NY), one of the new class of legislators in the House of Representatives has suggested the rate of income taxation for high-earners be raised. She is suggesting a top rate for those making over $10 million per year be increased to 60% or 70%. She’s suggesting the proceeds could be used for a “Green New Deal” or other programs. Here’s a link to more information. To be clear, she’s not suggesting that those making $10 million in income should have all … [Read more...] about New Tax Proposals
The Little Things May be the Most Important
Often, the smallest things have the most sentimental value. Your grandmother’s silverware or your grandfather’s railroad watch could connect you to them in a special way. Your mother’s ring or your father’s Boyscout bugle could hold a special place in your heart. Your sports memorabilia could connect you to one of your children in a unique way. You may want those items to go to particular beneficiaries who will cherish their sentimental value as you have. There’s an easy and flexible way to do … [Read more...] about The Little Things May be the Most Important
Tax Tips after New Year
The ball has dropped in Times Square and we’ve bid farewell to 2018. But there are still a few things we can do to adjust our tax liability for 2018 before filing tax returns on April 15. First, you’ll need to organize all your tax records. That way, you’ll have some idea of what your tax liability might be. After you’ve organized your tax records, if you find you will owe money, there are a couple things you can do. You can contribute to your IRA for 2018. That’s right, even though it’s … [Read more...] about Tax Tips after New Year
Giving Back
There are many ways to give back. Some give back through donations of cash or property. Other people give back by donating their time or expertise. Some people do both. When you give cash to a public charity, for example, you can deduct your contribution up to 60% of your adjusted gross income. For example, Mary Smith had an adjusted gross income of $100,000. She made a contribution of $60,000 to her alma mater. This resulted in Mary being taxed on $40,000 instead of $100,000, which cut her … [Read more...] about Giving Back
Being Thankful and Sharing Your Blessings
As we gathered around the Thanksgiving table last week, we saw the faces of our loved ones and probably contemplated how grateful we are for them and for all our blessings. “We must find the time to stop and thank the people who make a difference in our lives.” – John F. Kennedy, 35th President of the United States. “If you are really thankful, what do you do? You share.” — W. Clement Stone, businessman, philanthropist, and author. There are different ways we can share. We can share … [Read more...] about Being Thankful and Sharing Your Blessings
Estate Planning is About More Tan Taxes
The new tax law doubled the amount that can be passed free of federal estate taxation, at least through 2025. In 2018, an individual can pass $11.18 million free from federal estate taxation. But, estate planning was never just about estate taxation. The core of estate planning has always been about protecting your loved ones and the assets you leave them. There are many different ways you can protect your loved ones. Here are a few ways, depending upon the needs of your loved … [Read more...] about Estate Planning is About More Tan Taxes
Aretha Franklin Died Intestate: What Does It Mean for Her Family?
Aretha Franklin was known as the “Queen of Soul.” She was a singer, songwriter, civil rights activist, and so much more. Aretha was a great recording artist, with a career spanning many decades. She received honorary degrees from many prestigious universities, like NYU, Princeton, and Yale. She received the Presidential Medal of Freedom in 2005. In fact, we all owe her much “R-E-S-P-E-C-T,” just like the song for which she’s most famous. Aretha died on August 13, 2018, at age 76, without any … [Read more...] about Aretha Franklin Died Intestate: What Does It Mean for Her Family?
Special Accounts for People with Special Needs
Those with special needs have unique challenges in life. But, there are special accounts available to individuals who were disabled before age 26. The Achieving a Better Life Experience or “ABLE” Act created ABLE accounts under section 529A. As discussed in the last blog, 529 accounts give preferential tax treatment when the accounts are used for educational expenses. ABLE accounts are similar in structure to the 529 educational accounts. The income earned on the assets in ABLE accounts is … [Read more...] about Special Accounts for People with Special Needs
What’s a 529 Plan and What Are the Benefits to Using One?
A 529 plan is an account in which you can save for educational expenses. There are two types of plans. The first is a pre-paid tuition plan which is typically sponsored by a university. The second type of plan is an investment savings plan, typically sponsored by a state or state agency. The second type of plan is the more common one. Income Tax Benefits: 529 accounts are specialized accounts with a great tax benefit. Income earned in the account is not taxed currently. If the money is used … [Read more...] about What’s a 529 Plan and What Are the Benefits to Using One?
