The Trust You Paid For and Never Funded
Many trust documents appear valid but often remain unfunded, meaning they contain no assets. Trust funding requires actively transferring ownership of properties and financial accounts into the trust; signing the document alone doesn’t suffice. Regular reviews are essential to ensure assets remain funded, avoiding unnecessary probate proceedings upon death.
Trump Accounts for Business Owners: Funding Your Children’s Future Through Payroll
The Trump Account is a tax-deferred investment account for children, allowing contributions from parents and employers. Employers can contribute up to $2,500 yearly, tax-deductible for the business, but contributions count towards a combined $5,000 limit. Regulations are pending, and timing is crucial for businesses to leverage this benefit advantageously.
S Corp Shareholder Basis: Why Your K-1 Losses May Not Be Deductible
A K-1 loss is not a deduction but a potential one, dependent on your basis, a personal record of investments and liabilities in the business. Basis directly influences deduction capacity, where losses first reduce stock basis. Understanding and maintaining basis is crucial for tax planning, particularly in S corporations, to avoid unexpected capital gains.
Navigating Gifting and Inheritance: Tax Strategies for Families
Conversations on leaving wealth to children often begin with estate tax, but the capital gains tax on inherited assets is a significant concern. Strategies around gifting versus bequeathing assets have shifted due to changes in exclusion amounts. Reevaluating gifting plans and asset management is crucial for effective tax planning.
Can PTET Elections Still Benefit You Post-SALT Cap Changes?
The PTET election’s value has shifted with the SALT cap increase to $40,000, prompting a need for careful consideration among business owners. Depending on income levels and state tax situations, some may benefit from continuing, while others might find it unnecessary. Individual circumstances now dictate the relevance of the election.
Accountable Plan Rules Every S Corporation Owner Needs
This article discusses the importance of an accountable plan for S corporation owner-employees in light of recent tax law changes that disallow unreimbursed business expenses. It outlines requirements for reimbursement plans, including substantiation and business connection, and highlights how proactive tax planning can save money by ensuring compliance and maximizing deductions.
Charitable Giving Changed in 2026: The 0.5% Floor and Why Bunching Matters More Now
Recent changes to tax laws affect charitable contributions, notably introducing a 0.5% floor for itemized deductions. Taxpayers may benefit from bunching donations into a single year to surpass this threshold. A new deduction for non-itemizers and a future credit for educational donations also emerge, creating new strategic giving opportunities.
The 2026 Tax Changes Business Owners Are Still Missing: A Mid-Year Checkpoint
The 2025 tax law has layered provisions affecting business owners, some applicable immediately and others introduced in 2026 and beyond. Key changes include bonus depreciation, R&D expensing, and new reporting requirements. Business owners must adapt to these shifts, particularly around interest deductions and payroll reporting, before deadlines arise at year-end.
Understanding Charitable Remainder Trust Basics
Charitable remainder trusts (CRTs) are irrevocable trusts that provide income to beneficiaries for a specific period before donating remaining assets to charity. They offer financial benefits, such as tax deductions and income stability, while supporting philanthropic goals. Understanding CRT types and IRS rules is vital for effective estate planning.
The Great Wealth Transfer: What to Expect
The Great Wealth Transfer is on the horizon, poised to reshape financial landscapes. An estimated $68 trillion will change hands. This monumental shift will occur as Baby Boomers pass their wealth to younger generations. This transfer is the largest in history, affecting real estate, investments, and family businesses. It presents both opportunities and challenges for […]