By: Greg Reese, President & CEO, AmeriEstate Legal Plan, Inc. The Setting Every Community Up for Retirement Enhancement Act, better known as the SECURE Act, was signed into law on Friday, December 20, 2019 and became effective as of January 1, 2020. For purposes of this article, traditional IRAs and employer tax deferred accounts such as 401(k)s, 403(b)s, and 457s will all be referred … [Read more...] about The Secure Act – 2020 New Law Affecting Qualified Plans Payable to a Trust
10 Tax Elections to Save Money on Your 2019 Return
2020 is a presidential election year. You'll have an opportunity to cast a vote for your favored presidential candidate in November, but you can make several other key "elections" this year when filing your 2019 tax return. These elections may be influenced by the Tax Cuts and Jobs Act (TCJA), as well as the year-end spending package that was signed late last year. Here are ten … [Read more...] about 10 Tax Elections to Save Money on Your 2019 Return
Getting Married Again? Revisit Your Estate Plan
You can expect your life to change in significant ways when you marry for a second (or subsequent) time. As with all major life events, marriage calls for an estate plan review. Even if you removed your former spouse's name from estate documents when you were first divorced or widowed, you'll want to review your will, trusts, health care directives, powers of attorney and other estate … [Read more...] about Getting Married Again? Revisit Your Estate Plan
AmeriEstate: Take on Trust
We are all about celebrating life here in Costa Mesa. But tending to our end-of-life affairs? Um, raincheck! It’s hard enough to wrap our heads around the inevitable, much less our wallets. Making financial decisions now – in preparation for old age and beyond – is an issue we’d rather avoid completely, thank you very much. That’s a common, and very human, response to the topic … [Read more...] about AmeriEstate: Take on Trust
How Do You Structure Repayment Terms for a Deferred Sales Trust Installment Note
Generally, the terms of note will be Seller driven and the resulting terms must be reasonable and commercially viable. The initial term we would offer would be anywhere from 1 year to 10 years… Seller picks their desired term. The payback structure is very flexible in that the seller could: defer receiving payments for up to a couple of years or so; take a partial … [Read more...] about How Do You Structure Repayment Terms for a Deferred Sales Trust Installment Note
Tax Rules that Apply to Home-to-Rental Conversions
Residential real estate values have fully recovered in many areas, and rental rates are strong. To take advantage of this favorable situation, consider buying a new residence and converting your current home into a rental property that you can sell later for a higher price. This strategy can be a tax-savvy move, but it's not right for everyone. Here are some important tax issues to … [Read more...] about Tax Rules that Apply to Home-to-Rental Conversions
New Tax Law Provides 10 Key Breaks for Individual Taxpayers
A recent spending package signed into law by President Trump on December 20 retroactively resurrects and/or extends several key tax breaks through 2020. It also provides tax relief for victims of federally declared disasters. Here are ten breaks that can benefit eligible individuals. 1. Reduced Threshold for Medical Expense Deductions The Tax Cuts and Jobs Act (TCJA) set the … [Read more...] about New Tax Law Provides 10 Key Breaks for Individual Taxpayers
Five Payroll Tax Developments for 2020
Along with a new year comes new payroll rules. Here are five highlights: 1. Significant revisions have been made to Form W-4.The IRS redesigned Form W-4, beginning with the 2020 tax year. The form was revised to take into account changes from the Tax Cuts and Jobs Act. That law suspended personal exemptions and substantially increased the standard deduction. The mismatch between the old … [Read more...] about Five Payroll Tax Developments for 2020
Low Tax Rates Provide Opportunity to “Cash Out” with Dividends
Under current tax law, the federal income tax rate for C corporations is a flat 21%. Under prior law, C corporations faced a graduated federal income tax-rate schedule with a maximum effective rate of 35%. The flat 21% corporate tax rate is permanent, unless Congress passes legislation to repeal or modify it. In contrast, the reduced rates for individual taxpayers under the Tax Cuts and Jobs … [Read more...] about Low Tax Rates Provide Opportunity to “Cash Out” with Dividends
Bad News About Self-Created Intangibles
Certain self-created intangible assets no longer qualify as capital assets under the Tax Cuts and Jobs Act (TCJA). As a result, these assets no longer qualify for preferential long-term capital gain tax rates when sold in 2018 and beyond. Instead, gains from selling affected intangible assets are taxed at higher ordinary income rates. Affected Taxpayers and … [Read more...] about Bad News About Self-Created Intangibles
