Category: Exclusions

  • Why It’s Important to Plan for Income Taxes as Part of Your Estate Plan

    Why It’s Important to Plan for Income Taxes as Part of Your Estate Plan

    As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted…

  • Will You Have to Pay Tax on Your Social Security Benefits?

    Will You Have to Pay Tax on Your Social Security Benefits?

    If you’re getting close to retirement, you may wonder: Are my Social Security benefits going to be taxed? And if so, how much will you have to pay? It depends on your other income. If you’re taxed, between 50% and 85% of your benefits could be taxed. (This doesn’t mean you pay 85% of your…

  • Possible Tax Consequences of PPP Loans

    Possible Tax Consequences of PPP Loans

    If your business was fortunate enough to get a Paycheck Protection Program (PPP) loan taken out in connection with the COVID-19 crisis, you should be aware of the potential tax implications. PPP basics The Coronavirus Aid, Relief and Economic Security (CARES) Act, which was enacted on March 27, 2020, is designed to provide financial assistance…

  • The 2019 Gift Tax Return Deadline Is Coming Up

    The 2019 Gift Tax Return Deadline Is Coming Up

    If you made large gifts to your children, grandchildren, or other heirs last year, it’s important to determine whether you’re required to file a 2019 gift tax return. And in some cases, even if it’s not required to file one, it may be beneficial to do so anyway. Who must file? Generally, you must file…

  • Take Advantage of the Gift Tax Exclusion Rules

    Take Advantage of the Gift Tax Exclusion Rules

    As we head toward the gift-giving season, you may be considering giving gifts of cash or securities to your loved ones. Taxpayers can transfer substantial amounts free of gift taxes to their children and others each year through the use of the annual federal gift tax exclusion. The amount is adjusted for inflation annually. For…

  • Selling Your Home? Consider These Tax Implications

    Selling Your Home? Consider These Tax Implications

    Spring and summer are the optimum seasons for selling a home. And interest rates are currently attractive, so buyers may be out in full force in your area. Freddie Mac reports that the average 30-year fixed mortgage rate was 4.14% during the week of May 2, 2019, while the 15-year mortgage rate was 3.6%. This…

  • Be Aware of Tax Consequences Before Selling Your Home

    Be Aware of Tax Consequences Before Selling Your Home

    In many parts of the country, summer is peak season for selling a home. If you’re planning to put your home on the market soon, you’re probably thinking about things like how quickly it will sell and how much you’ll get for it. But don’t neglect to consider the tax consequences. Home sale gain exclusion…

  • Home-Related Tax Breaks Valuable on 2017 Returns; Less So for 2018

    Home-Related Tax Breaks Valuable on 2017 Returns; Less So for 2018

    Home ownership is a key element of the American dream for many, and the U.S. tax code includes many tax breaks that help support this dream. If you own a home, you may be eligible for several valuable breaks when you file your 2017 return. But under the Tax Cuts and Jobs Act, your home-related…