Tax-Deferral Strategies for Commercial Real Estate Investors Commercial real property investors have long relied on Section 1031 of the Internal Revenue Code to defer capital gains tax on the sale of appreciated property when they reinvest sales proceeds into similar like-kind property. However, with the Biden administration’s proposal to restrict the tax-deferral benefits of 1031 […]
Employer-sponsored 401(k) plans are excellent vehicles for individuals to save for retirement during their prime earning years. Annual contributions made today with pretax dollars grow tax-deferred until you reach retirement age, when the distributions you take are treated as taxable ordinary income. However, even if you are diligent and contribute the maximum allowable amount to […]
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law at the end of 2019 to help more Americans prepare and plan for greater financial security during their retirement years. As the average life span increases, people need more money to maintain their standards of living in retirement. However, not […]
Included in the Biden Administration’s proposed budget for fiscal 2022 is an additional $1.2 billion in funding to help the IRS ramp up its tax enforcement efforts after more than a decade of spending and staffing cuts. What this means for taxpayers is a likely increase in IRS audits and heightened scrutiny of tax compliance, […]
Rarely do taxpayers have an opportunity to reduce their taxable income and related tax liabilities in a given year after the clock strikes midnight on December 31. This is not the case for certain trusts, which the IRS grants an additional 65 days after year-end to distribute income to beneficiaries and treat it as if […]
Under U.S. tax law, foreign corporations and foreign persons deemed nonresident aliens (NRA) for tax purposes must pay U.S. taxes only on income they earn from U.S. sources. Therefore, an NRA that owns an interest in U.S. real estate will have a U.S. income tax liability only when he or she “disposes” of the property […]
Millions of college-age students are taking a gap year or living at home during the Fall 2020/Spring 2021 semesters while many classes have moved online as a result of the COVID-19 pandemic. It is important for families to understand how these decisions may affect the funds they have saved in 529 plans. A 529 college […]
The following changes to federal tax laws apply to U.S. individual taxpayers, trusts and estates for tax year 2021 and the tax returns they will file the following year. Marginal Income Tax Rates For tax years beginning on Jan. 1, 2021, there continues to be seven individual tax brackets with marginal rates topping out at […]
Recipients of Social Security benefits, including Supplemental Security Income (SSI), will receive a modest 1.3 percent cost-of-living adjustment in 2021, down from 1.4 percent in 2020, according to a recent announcement from the Social Security Administration. This meager bump during the financial challenges brought about by the COVID-19 pandemic will bring just a few extra […]
The Internal Revenue Service (IRS) recently issued final regulations that allow decedents’ estates and non-grantor trusts to claim certain deductions that would otherwise have been disallowed under the 2017 overhaul of the tax code. The Tax Cuts and Jobs Act (TCJA) barred individuals, estates and non-grantor trusts from claiming miscellaneous itemized deductions for any taxable […]