Category: Trust and Estate
Inheritance or gifts from foreign persons may require Form 3520 reporting
While gifts or inheritances do not trigger U.S. income tax reporting, they can impose other filing obligations on the recipient. Regarding gifts and inheritances received from foreign individuals or entities by U.S. citizens or residents, Form 3520 (Annual Return to...
Estate Planning Essentials
Estate planning is crucial for ensuring your family's well-being in the event of your incapacity or passing. To help you prepare effectively, review the following checklist. If any items are unresolved, it may be prudent to consult with an estate...
Selling your home to a related party?
Most transfers of property or property interests without adequate consideration are treated as gifts. This includes below-market sales of homes, which often occur when selling to a related party. The difference between the fair market value and the sale price...
What happens to tax basis upon death of a business partner?
Upon an individual's death, the estate must report the tax basis of all assets for estate tax purposes based on their fair market values at the date of death or an alternate valuation date if elected. Assets exceeding their tax...
Understanding the key elements of the SECURE Act
The SECURE Act, signed into law recently, introduces significant changes impacting retirement and tax planning starting in 2020. Here are the key provisions affecting individuals: Repeal of Traditional IRA Age Limit: Individuals can now contribute to a traditional IRA regardless...
Guest Author Jim Niedzinski, CFP®, AIF®: The Benefits of Donor-Advised Funds
Jim Niedzinski, Wealth Advisor from Planning Alternatives, shares how to save taxes on charitable donations and make giving easier with a donor-advised fund. Jim Niedzinski, CFP®, AIF® , Wealth Advisor at Planning Alternatives, discusses the benefits of Donor-Advised Funds Jim Niedzinski is in his 20th year as a wealth...
Tax Reform Planning Series: Maximize home mortgage interest deductions
Before the Tax Cuts and Jobs Act (TCJA), taxpayers could deduct interest paid on up to $1 million ($500,000 if married filing separately) of home acquisition debt (debt used to buy or substantially improve a first or second home). Also,...
Obtaining a refund of transfer tax paid on the sale of a home that has lost value
Michigan home sellers who experience a decline in their home's value since purchase can now claim exemption from state transfer tax, thanks to recent legislation and a Michigan Supreme Court decision. This exemption, designated as (u), applies if the State...
How to enhance retirement planning under new tax laws
A recent article from CNBC outlined several ways taxpayers can improve retirement planning under new the tax laws. Here’s an overview: Move to a low-tax state. New caps on state and local tax deductions make retirement in high-tax, blue states...
The importance of trust and estate planning
According to a recent study by Caring.com, 58% of American adults have not yet created a will or trust. If you find yourself in this group, now is the time to start planning. While discussing mortality may be difficult, it...