MLR

Category: Tax

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The IRS has announced that the annual gift tax exclusion is increasing next year due to inflation. After five years of being stuck at $14,000, the exclusion will be $15,000 per recipient for 2018 — its highest point ever.

Congress moved one step closer to the finish line on November 28th with the Senate Budget Committee approving its tax reform package for a vote by the full Senate in the coming days.  If passed, it would then need to be reconciled with the tax reform bill already passed by the House before a final version could be sent to the White House.

As Congress moves closer to the finish line on tax reform, many clients may be asking what they should be doing right now to best position themselves for tax savings, and to avoid or soften the impact of disappearing deductions. The following offers year-end moves that can accomplish both goals.

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Giving to charity can provide you with a warm feeling as well as a nice tax break. But you’ve got to itemize deductions on your tax return.

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The reporting requirements for claiming charitable contributions of cash on your tax return can be strict. If you don’t follow them, your deductions may be disallowed by the IRS.

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The American Jobs Creation Act of 2004 dealt a significant blow to U.S. exporters by phasing out the tax benefits available through the “extraterritorial income exclusion” (EIE).

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There can be negative tax consequences when purported loan payments are recast as corporate distributions to shareholders. In some cases, the courts have ruled that withdrawals from two closely held corporations were constructive corporate distributions rather than loan proceeds and repayments.

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When it comes to building wealth on a tax-deferred basis, the benefits of a 401(k) plan are too good to pass up.

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The reporting requirements for claiming charitable contributions of cash on your tax return can be strict. If you don’t follow them, your deductions may be disallowed by the IRS.

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The IRS cautions plan administrators that they must document and keep necessary records of all employees’ hardship distributions and plan loans.