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Crummey Trusts Are Still Relevant
Traditionally, trusts used in estate planning contain “Crummey” withdrawal powers to ensure that contributions qualify for the annual gift tax exclusion. Today, the exclusion allows you to give up to $15,000 per year ($30,000 for married couples) to any number of recipients. Now that the gift and estate tax exemption has reached an inflation-adjusted $11.4 million, [...]
When is Tax Due on Series EE Savings Bonds?
You may have Series EE savings bonds that were bought many years ago. Perhaps you store them in a file cabinet or safe deposit box and rarely think about them. You may wonder how the interest you earn on EE bonds is taxed. And if they reach final maturity, you may need to take action [...]
Why Affinity Fraud is Particularly Heinous
Affinity fraud is particularly heinous. Perpetrators exploiting connections of race, religion, age, politics and profession is one of the cruelest forms of criminal deception. Fraudsters often belong to the groups they target and, in addition to stealing money, weaken the bonds within communities. Affects individuals and businesses Affinity fraud targets individuals. But it can also [...]
Business Website Cost Tax Treatment
These days, most businesses need a website to remain competitive. It’s an easy decision to set one up and maintain it. But determining the proper tax treatment for the costs involved in developing a website isn’t so easy. That's because the IRS hasn’t yet released guidance on business website cost tax treatment. Consequently, you must [...]
Tax Credits for College Costs
We all know the cost of college is expensive. The latest figures from the College Board show that the average annual cost of tuition and fees was $10,230 for in-state students at public four-year universities — and $35,830 for students at private not-for-profit four-year institutions. These amounts don’t include room and board, books, supplies, transportation [...]
Get the Goods on Hidden Assets
Hidden assets can be an issue in a variety of contexts — from divorce to bankruptcy to fraud. An acrimonious divorce, ownership dispute or occupational theft incident could all lead an individual or business to wrongfully hide items of value. In such cases, fraud experts use a variety of tools to uncover the assets — [...]
How to Withdraw Cash from your Corporation
Do you want to withdraw cash from your closely held corporation at a low tax cost? The easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.” But it’s not deductible by the corporation. Fortunately, there [...]
Tax Issues When Divorcing
In addition to the difficult personal issues that divorce entails, several tax concerns need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. Here are four tax issues when divorcing that you should to understand. (1) Alimony or support payments For alimony under divorce [...]
Real Estate Money Laundering Schemes
Money laundering is the process by which criminals transform their ill-gotten gains into legitimate-looking funds. It’s widespread and wide-reaching, making it a significant corrupting influence on financial systems, governments and certain professionals. Criminals use many different types of businesses to “wash” their dirty money, but some are more useful than others. Real estate money laundering [...]
Avoid Common Slip-ups When Selling Your Business
(This is Blog Post #639)
Quantitative Easing Explained . . . Again
As posted to Malekanoms YouTube Channel on 11/11/10 (Run Time: 6 minutes, 48 seconds) Quantitative Easing Explained . . . Again? Why "Again"? That's because I originally posted this clip as Blog Post #150 way back on 11/17/2010 when it was hot off the presses. Now . . . 9 years later, the powers-that-be have [...]
Connection Between Fraud and Geometry
What is the connection between fraud and geometry? Fraud experts have long suggested that the presence of three conditions, known as the “fraud triangle,” greatly increases the likelihood that an employee will commit fraud. Over the years, this conceptual framework has been expanded to become a “fraud diamond.” Understanding these models can help you protect [...]
The Right Retirement Plan for Your Business
If you’re a small business owner or you’re involved in a start-up, you may want to set up a tax-favored retirement plan for yourself and any employees. Several types of plans are eligible for tax advantages. But what is the right retirement plan for your business and it's employees? 401(k) plan One of the best-known [...]
What is the Best Fuel to Use in Your Vehicle?
As posted to the Chris Fix YouTube Channel on 10/15/19 (Run Time: 16 min, 10 sec) What is the best fuel to use in your vehicle? Chris Fix explains the octane rating system and other related matters in this informative clip. (This is Blog Post #635) Chris Fix creates and posts easy-to-follow, step-by-step how-to style [...]
A Family Bank Affords Intrafamily Lending
One of the primary goals of estate planning is to put in writing how you want your wealth distributed to loved ones after your death. But what if you’d like to use that wealth to help a family member in need while you’re still alive? A family bank affords intrafamily lending. If you’re considering making [...]
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
