Definition of a “Grantor, Settlor, or Trustor” of a Trust These terms are often interchangeable. The Grantor, Settlor, or Trustor of a trust decides how the trust will operate, including: what property to include in the trust, who the beneficiaries will be and how beneficiaries will receive their inheritance. When the trust is revocable (i.e., can be changed or terminated until the grantor … [Read more...] about Definition of a “Grantor, Settlor, or Trustor” of a Trust
The LLC form of company ownership generally shields individual owners (known as members) from personal liability for the debts or obligations of the LLC. Creditors of an LLC can normally only go after the assets of the LLC and not the member's individually owned assets. Are you personally liable for business debts? There are certain situations where you can be held personally liable for … [Read more...] about Are You Personally Liable for an LLC?
Unfortunately, the Tax Cuts and Jobs Act (TCJA) retains the individual Alternative Minimum Tax (AMT). But there's a silver lining: The AMT rules now reduce the odds that you'll owe the AMT for 2018 through 2025. Plus, even if you're still in the AMT zone, you'll probably owe less AMT than you did under the old rules. Why the AMT Hits Upper-Middle-Income Taxpayers Under prior law, many … [Read more...] about New Law Eases the Individual Alternative Minimum Tax
Federal income tax rates for C corporations have been reduced to a flat 21%, starting in 2018 under the Tax Cuts and Jobs Act (TCJA). But what about pass-through businesses? Calculating the QBI Deduction:It's All Relative To illustrate how the qualified business income (QBI) deduction works, let's suppose you and your spouse file a joint tax return for 2018, reporting taxable income … [Read more...] about New Law Gives Eligible Pass-Through Businesses a Special Tax Break
Are you a recordkeeping pack rat? Many individuals and businesses hold onto paper and digital records indefinitely — just in case. But securely storing years of financial records can become burdensome. Here's some guidance to help minimize recordkeeping overload. Secure Disposal of Sensitive Data Think twice about keeping certain financial records indefinitely. The more records you … [Read more...] about Save or Shred? Follow These Recordkeeping Guidelines
The Tax Cuts and Jobs Act (TCJA) may have put a crimp in some of your summer plans by eliminating or scaling back certain tax breaks. But individuals and small business owners still have plenty of opportunities to save taxes. Here are six ideas to consider this summer: 1. Host an Outing for Employees Under prior law, businesses could deduct 50% of the cost of its entertainment and meal … [Read more...] about 6 Cool Ways to Save Taxes During the Hot Summer Months
Are you confused about the federal income tax rates on capital gains and dividends under the Tax Cuts and Jobs Act (TCJA)? If so, you're not alone. Here's what you should know if you plan to sell long-term investments or expect to receive dividend payments from your investments. Old Rules Prior to the TCJA, individual taxpayers faced three federal income tax rates on long-term capital … [Read more...] about Capital Gains Rates Before and After the New Tax Law
The Tax Cuts and Jobs Act (TCJA) changes the rules for deducting interest on home loans. Most homeowners will be unaffected because favorable grandfather provisions will keep the prior-law rules for home acquisition debt in place for them. Old Rules for Mortgage Interest Deductions Prior to the Tax Cuts and Jobs Act (TCJA), you could deduct interest on up to $1 million of home … [Read more...] about FAQs about Deducting Home Loan Interest under the New Tax Law
How Can the Deferred Sales Trust be Used to Fund Alternative Investments? Let’s take real estate, for example. Frequently a DST is established as a bail-out or a Plan ‘B’ for a seller who is pursuing a 1031 exchange. Industry statistics show that 20% to 30% of 1031 exchanges fail because a seller is unable to identify their upside property within 45 days and successfully close on the … [Read more...] about How Can the Deferred Sales Trust be Used to Fund Alternative Investments?
By Greg Reese, Principal, Reef Point, LLC - Trustee for the Deferred Sales Trust The Deferred Sales Trust is designed so that the proceeds of the sale of a business, real property or highly appreciated collectables can achieve tax deferred status. The original seller of the appreciated asset first sells the asset to the Trustee of the Trust, who then “re-sells” the property to the intended … [Read more...] about The Use of Alternative Investments within the Deferred Sales Trust