accounting, audit, business advisory and tax services
The U.S. Supreme Court’s June 25 decision once again upheld the Affordable Care Act (ACA), meaning employers subject to the act’s information reporting provision can no longer afford to put off planning in the hope that the requirements might go away. Beginning in 2016, “large” employers defined by the act…
On June 26, the U.S. Supreme Court ruled that same-sex couples have a constitutional right to marry. From a tax planning perspective, the latest ruling means that…
Portability now allows married couples to use up both spouses’ estate tax exemptions without having to make lifetime asset transfers or set up trusts, though this “simpler” path isn’t necessarily the better path.
For couples with large estates, making lifetime asset transfers and setting up trusts can provide benefits that exemption portability does not offer.
With portability, if one spouse dies and part (or all) of his or her estate tax exemption is unused at death, the estate can elect to permit the surviving spouse to use the deceased spouse’s remaining estate tax exemption. But making the portability election does not protect future growth on assets from estate tax like applying the exemption to a credit shelter trust does.
Also, the portability provision does not apply to the Generation-Skipping Transfer (GST) tax exemption, and some states do not recognize exemption portability. Credit shelter trusts offer GST and state estate tax planning opportunities, as well as creditor and remarriage protection.
If you would like to learn more about credit shelter trusts or other estate planning strategies for your situation, please contact Whalen.
Copyright 2015 Thomson Reuters
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If you have employees who telecommute, make sure you consider the potential tax implications. Hiring someone who telecommutes in another state, for example, might…
If you don’t pay attention to the details, the tax consequences of an investment sale may be different from what you expect.
For example, if you bought the same security at different times and prices and want to sell high-tax-basis shares to reduce gain or increase a loss to offset other gains, be sure to specifically identify which block of shares is being sold.
And when it gets close to year-
end, keep in mind that the trade date, not the settlement date, of publicly traded securities determines the year in which you recognize the gain or loss.
Finally, consider the transaction costs, such as broker fees. While of course such costs are not taxes, like taxes they can have a significant impact on your net returns, especially over time, because they also reduce the amount of money you have available to invest.
If you have questions about the potential tax impact of an investment sale you are considering — or all of the details you should keep in mind to minimize it — please contact Whalen.
Copyright 2015 Thomson Reuters
