Taking steps to defer your individual federal income tax bill is often a good idea. If you expect to be in the same tax bracket in future years, lowering this year's taxable income will postpone your tax bill and give you extra cash to work with until the bill comes due. If your tax rates turn out to be lower in future years, deferring taxable income into those future … [Read more...] about Can You Have Too Much Tax Deferral?
Every year, the IRS releases cost-of-living adjustments to qualified retirement plan amounts. For tax year 2019, many of the limits applicable to pensions and other retirement plans will increase. But some will remain unchanged from 2018. The following limits will increase for 2019 based on the cost of living: The elective deferral limit for employees participating in 401(k), 403(b) … [Read more...] about IRS Ups the Ante on Retirement Contributions
The countdown to year end has begun. Have you positioned yourself to minimize your 2018 tax bill? The Tax Cuts and Jobs Act (TCJA) made sweeping changes to the federal tax laws that will affect virtually all individual taxpayers — and most of those changes went into effect for this tax year. Here are four tried-and-true tax planning strategies, tweaked to account for the TCJA. 1. … [Read more...] about 4 Year-End Strategies to Lower Your Personal Tax Bill
Estate and Gift Tax Basics The TCJA sets the unified federal estate and gift tax exemption at $11.4 million per person for 2019 (up from $11.18 million for 2018). For married couples, the exemption is effectively doubled to $22.8 million for 2019 (up from $22.36 million for 2018). The exemption amounts will be adjusted annually for inflation from 2020 through 2025. In 2026, the exemption is … [Read more...] about Estate Tax Planning Tips for Married Couples
Estate planning is an important part of your overall wealth management strategy, especially if you're unmarried. Single parents may worry about who will care for their minor children and whether their surviving kids' financial needs will be met until adulthood. Likewise, wealthy single people have less flexibility when it comes to shielding transfers from gift and estate taxes. Fortunately, … [Read more...] about Estate Tax Planning Tips for Single People
The Internal Revenue Service, along with the Department of Labor and the Department of Health and Human Services, have issued proposed regulations that would allow employers to fund tax-exempted health reimbursement arrangements to help pay for employees' individual health insurance premiums. A health reimbursement arrangement (HRA) is an employer-funded arrangement designed to reimburse … [Read more...] about Proposed Regulations Would Expand Health Reimbursement Arrangements
1031 Exchanges and Deferred Sales Trust™ are both based on the structuring of sales transactions to avoid actual or constructive receipt of the immediate sales proceeds by the seller. Used as a backup strategy, the Deferred Sales Trust™ preserves tax deferral when the seller cannot successfully complete a 1031 Exchange or does not wish to reinvest back into real estate. When this happens, the … [Read more...] about Using the Deferred Sales Trust™ to Rescue a Failed 1031 Exchange
Why Should You Consider the Deferred Sales Trust? If you are considering the sale of a business, corporation, or investment real estate, you may face capital gains tax associated with that sale. For the investor who does not want to continue holding investment property or remain in the same business, a Deferred Sales Trust should be considered. According to Section 453 of the Internal Revenue … [Read more...] about Primer on the Deferred Sales Trust (DST)
Roughly one in five Americans in the workforce believe that "working for pay" will be a major source of their retirement income. This is according to the "2018 Retirement Confidence Survey" produced by the Employee Benefit Research Institute (EBRI). Nearly half of respondents believe paid work will be a minor source of retirement income for them. This widespread expectation of working in … [Read more...] about Effective Retirement Planning Includes Contingencies
By Greg Reese, Principal Reef Point, LLC Certified Trustee for the Deferred Sales Trust The DST starts with an owner of an appreciated asset who wishes to sell that asset and defer taxes on his or her gain. In order to defer the gains on the sale, the seller/taxpayer must engage with the Estate Planning Team (EPT) and its Tax Attorneys BEFORE the property is actually sold and the seller/taxpayer … [Read more...] about How Does The Deferred Sales Trust Work?