Recent Blog Posts
Home office deduction 101
If your use of a home office is for your employer’s benefit or because you’re self employed, you may be able to deduct a portion of your mortgage interest, property taxes, insurance, utilities and certain other expenses, as well as the depreciation allocable to the office space. Or you may be able to take… Read More »
Are you meeting the ACA’s additional Medicare tax withholding requirements?
Under the Affordable Care Act (ACA), beginning in 2013, taxpayers with FICA wages over $200,000 per year ($250,000 for joint filers and $125,000 for married filing separately) had to pay an additional 0.9% Medicare tax on the excess earnings. Unlike regular Medicare taxes, the additional Medicare tax doesn’t include a corresponding employer portion. But… Read More »
Is it time for an estate plan checkup?
Now that we’re in the new year, it’s time for an estate plan checkup. Why? First, various exclusion, exemption and deduction amounts are adjusted for inflation and can change from year to year, so it’s a good idea to see if they warrant any updates to your estate plan: Lifetime gift and estate tax… Read More »
Even with rising exemptions, 2013 annual exclusion gifts still a good idea
Recently, the IRS released the 2014 annually adjusted amount for the unified gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption: $5.34 million (up from $5.25 million in 2013). But even with the rising exemptions, making annual exclusion gifts is still a good idea. The 2013 gift tax annual exclusion allows… Read More »
Will your investment income be subject to the new 3.8% NIIT?
Under the health care act, starting in 2013, taxpayers with modified adjusted gross income (MAGI) over $200,000 per year ($250,000 for joint filers and $125,000 for married filing separately) may owe a new Medicare contribution tax, also referred to as the “net investment income tax” (NIIT). The tax equals 3.8% of the lesser of… Read More »
IRS Makes More Same-Sex Couples Eligible for Federal Tax Treatment as a Married Couple
In response to the U.S. Supreme Court’s June decision regarding same-sex marriage, the IRS recently clarified that married same-sex couples will be treated as married for all federal tax provisions in which marriage is a factor, such as filing status, dependent exemptions and child credits, and gift and estate tax breaks. Significantly, the Supreme… Read More »
Married Same-Sex Couples Can Now Be Treated as Married for Federal Tax Purposes Regardless of State of Residency
The Internal Revenue Service and the Treasury Department have ruled that legally married same-sex couples will be recognized as married for federal tax purposes even in the states that do not allow same-sex marriages. This development is the most sweeping change since the U.S. Supreme Court struck down the 1996 Defense of Marriage Act… Read More »
Important Arizona Legislative Changes Impact Estate Planning
Effective September 12: Simplified probate proceedings (by using a simple affidavit) will be available for small estates with personal property valued at $75,000 or less (previously less than $50,000) and real property valued up to $100,000 (previously $75,000 or less). The Arizona legislature has now provided explicit bankruptcy protection for Section 529 plan accounts, which set… Read More »
Is it Time for Short-Term Grantor Retained Annuity Trust?
Congress’s decision not to include a proposed minimum term for grantor retained annuity trusts (GRATs) in the tax legislation passed back in January — combined with low interest rates — may make it an ideal time to add short-term GRATs to your estate planning arsenal. A GRAT consists of an annuity interest, retained by… Read More »