Christine Hradsky No Comments

USRPI, NRAs, and Estates, Oh My!

USRPI

Handling US real property interests, non-resident aliens, and estates can be complicated for tax considerations.

By Bethany Bouw

With as much trepidation as Dorothy and her new friends experienced in The Wizard of Oz, we should approach the subject of US real property interests (USRPI), non-resident aliens (NRAs), and estates the same way. It is very important to determine how the USRPI is held and if there are any advisable elections. Please make sure to seek your accounting professional’s assistance. Read more

Christine Hradsky No Comments

Leaving IRA Money to Charity: A Tax-Smart Strategy

Leaving IRA Money

Leaving portions of your IRA to beneficiaries may subject it to double or triple taxation.

These days, many people have a large percentage of their wealth in the form of traditional IRA accounts. In most cases, this is because significant distributions have been rolled over tax-free from qualified retirement plans to these IRAs. A lot of people also have charitable intentions. If this sounds familiar, there’s a tax-saving strategy you should know about: Consider designating your favorite charity or charities as beneficiaries of all or a portion of your IRAs. Then leave other assets to family members or other heirs. Read more

Christine Hradsky No Comments

Summary of International Provisions Included in the Tax Cuts and Jobs Act

Summary

On November 2, 2017, the House of Representatives released the Tax Cuts and Jobs Act (the “Bill”). The Bill includes a broad set of proposed changes to overhaul the current U.S. tax system, including rules on how foreign income and foreign persons would be taxed. The Bill’s key proposals relating to the taxation of foreign income and foreign persons are summarized below.[1] 

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Year-End Business Tax Planning Strategies in Light of Tax Reform

Tax Planning Strategies

Start planning and taking steps to reduce your 2017 business income tax bill.

It’s not too late! You can still take steps to significantly reduce your business’s 2017 income tax bill and possibly lay the groundwork for tax savings in future years.

Here are five year-end tax-saving ideas to consider, along with proposed tax reforms that might affect your tax planning strategies. Read more

Christine Hradsky No Comments

Defaulting on Retirement Plan Loans Causes Taxable Distributions

Retirement Plan Loans

Not repaying retirement plan loans can lead to major tax consequences.

Want to borrow money from your retirement plan? Not so fast. Retirement plan loans can be a viable way to get money in a crunch, but you need to follow the rules about repaying them. If you don’t, it could lead to unfavorable tax consequences, as two taxpayers recently learned the hard way in U.S. Tax Court. Read more

Christine Hradsky No Comments

Employee Benefit Plans- Cost of Living Update

2018 COST-OF-LIVING ADJUSTMENTS FOR QUALIFIED RETIREMENT PLANS

The Internal Revenue Service has announced the cost-of-living adjustment (COLA) for 2018. The dollar limitations for pension plans and selected other items are displayed in the associated graph. Certain annual compensation amounts were increased, including the limit for elective deferrals, which have not been updated since 2015. The Social Security Administration separately announced an increase to the taxable wage base. Read more

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Rx for Itemizing Medical Expenses

Itemizing Medical ExpensesMedical expenses can be costly — and they’re not always covered by insurance. But there may be a silver lining: You may be able to claim an itemized deduction for the amounts you pay for medical, dental and vision care, if you incur enough costs to exceed the applicable threshold for the tax year. Here are the details about this deduction. Read more

Christine Hradsky No Comments

2017 Year End Tax Planning Guide

Tax Reform, IRS, Court Decisions, and More Add to Uncertainties at Year-End

Year-end 2017 presents a unique set of challenges for taxpayers. At the top of the list are the uncertainties created by the possibilities within proposed tax reform legislation – what changes might be made, and whether those changes would be retroactive for 2017.

Also presenting a unique challenge before year-end is the Trump Administration’s initiative to “streamline” rules and regulations coming out of the Treasury and IRS. Meanwhile, the usual flood of court decisions and IRS guidance has continued, also presenting new opportunities –and pitfalls–that require year-end action.

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Christine Hradsky No Comments

Giving Gifts to Employees? IRS Wants Its Share

Giving gifts to employees

Giving gifts to your employees often comes with tax implications.

Do you want to be extra-generous to employees who are doing a good job? Bonuses and gifts can be an effective motivational tool, but just be aware of all the tax consequences. Usually, the employees will face a tax bill for your generosity. Read more