You may have heard that lawmakers recently voted to push forward a proposed "Millionaire's Tax" in the state of Massachusetts. Wondering what this means, and when it could possibly impact Massachusetts residents?
To shed some light on the topic, I've put together a list of frequently asked questions and answers:
The IRS recently released an update to its federal estate tax regulations, relaxing the rules on making a late portability election to a descendant's estate.
Currently, the federal estate tax exemption is $5.4 million, meaning that when a person dies, they will only pay federal estate tax (up to 40%) if the value of their estate exceeds $5.4 million. In 2011, the IRS introduced a concept called 'portability' to the federal estate tax exemption, and has now added an additional rule to allow for a late portability election. Here's what you should know:
President Trump recently unveiled the "2017 Tax Reform for Economic Growth and American Jobs", which calls for tax cuts and simplification for both individuals and businesses. Currently, the plan contains broad principles, with specific details to be determined in the coming weeks.
While we wait for the details to be finalized, I've summarized the major changes outlined in the current proposed plan. Here are the top 10 things you should know:
Did you know that if your company has developed software for internal use, you may be eligible for tax credits? This fall, the IRS finalized a regulation that will allow taxpayers to receive credit for their investment in software research and development.
You might think that you need to develop software for a multi-billion dollar company to claim tax credits, but that's not necessarily the case. If your company is attempting to develop or improve your own software (or have hired someone to do so for you), you're likely to be eligible for tax benefits.
Many people fear the wrath of the IRS, especially during tax season. Penalties for late-filing, late-payment, accuracy related penalties, or estimated tax penalties can make filing your taxes seem like a daunting task.
Over the past several months, we have spoken with many individuals who have received threatening phone calls from the "IRS". The caller may demand immediate payment of back taxes, ask for a credit card number over the phone, or even threaten a lawsuit or arrest for failure to comply.
This is a widespread scam that is becoming more prevalent. As we approach tax season, it is more important than ever to be diligent and protect your personal information. To help you identify scammers, I've put together a list of 6 things the real IRS will never do.
As we approach the end of 2016, you'll likely hear many people talking about year-end tax planning. While implementing tax planning strategies at year-end is certainly advantageous, tax planning can be even more beneficial as a year-round activity.
As a financial planner, I often advise my clients to regularly review their financial planning activities alongside the current tax strategies available to them, to minimize potential income taxes while staying on course to meet their financial goals.
Tax season is quickly approaching, and business owners will need to get organized a little earlier this year. Recent legislative actions, made an in effort to cut down on both tax fraud and identity theft, have changed the upcoming W-2 and 1099-MISC filing deadlines.
Did you know that if your estate is large enough, up to 40% of your life insurance death benefits can be lost to federal estate tax?
Although life insurance proceeds are not subject to income tax, they are included in your taxable estate, and therefore can be subject to estate tax. To prevent the taxation of life insurance proceeds, many of our clients choose to purchase their life insurance policy using an Irrevocable Life Insurance Trust (ILIT), or gift their existing policy to an ILIT.
