Tax Tips

Individual Key Tax Provisions Tax Provision Current Law House Bill Senate Bill (Approved by House) Individual Income Tax Rates TCJA rates expire after 2025; seven brackets return to pre-TCJA. Makes TCJA rates permanent; inflation-adjusted. Same as House; adds extra year of inflation for 10% and 12% brackets. Standard Deduction Reverts to pre-TCJA after 2025. Single […]

A well-crafted estate plan ensures your wealth reaches your intended beneficiaries—not the IRS. If you’re looking to transfer assets efficiently while retaining financial control, an Intentionally Defective Grantor Trust (IDGT) can be an effective tool. This estate planning strategy allows the trust creator (the grantor) to pay income taxes on trust assets, thereby reducing their

C corporations are generally subject to double taxation: once at the corporate level when income is earned, and again at the shareholder level when that income is distributed. In contrast, S corporations typically are not taxed at the corporate level. Instead, their income and deductions flow through to the shareholders when earned. Distributions from an

In June 2024, the U.S. Supreme Court issued a unanimous decision in Connelly v. United States, a case with far-reaching consequences for business owners—especially those operating closely held corporations with life insurance-funded buy-sell agreements. The Court determined that life insurance proceeds received by a corporation to redeem a deceased shareholder’s shares must be included in

Backdoor Roth IRA: A Strategic Retirement Planning Tool for High-Income Individuals A Backdoor Roth IRA is a legal and effective strategy that allows high-income earners, who exceed the income limits for direct Roth IRA contributions, to still benefit from the tax advantages of a Roth account. This method involves contributing to a traditional IRA and

The IRS has released a draft version of Form 7217, Partner’s Report of Property Distributed by a Partnership, which partners must use starting with the 2024 tax year to report their tax basis in property distributed to them by partnerships. This new requirement aims to enhance transparency by requiring partners to disclose details such as

The Treasury Department announced today that it will not enforce any penalties or fines related to the Corporate Transparency Act’s beneficial ownership reporting rule, both under existing deadlines and after upcoming regulatory changes. Additionally, a proposed rule will be introduced to limit the reporting requirement to foreign companies only. This move aims to support American

The Qualified Business Income (QBI) deduction offers owners of pass-through entities a significant tax advantage by allowing a deduction of up to 20% of their qualified business income. However, maximizing this deduction requires careful consideration of various factors, including taxable income thresholds and wage limitations. Understanding the 2/7 Rule: For taxpayers whose taxable income exceeds