Articles Posted in Tax

Internal Revenue Code Section 6166(a)(1) provides that an executor may elect to pay all or a portion of the estate tax attributable to a closely held business in two (2) or more equal annual installments (no more than 10 annual installments are allowed). Requirements to qualify: An interest in a closely held business is defined…

Stimulus Payments: Up to $1,200 per person ($2,400 married joint) and $500 per child under 17. Eligibility is based on 2019 tax filing (2018 if not filed 2019). Tax Payment Due Dates: 2019 income tax returns and respective payments are due July 15, 2020. There is no cap on the amount of payments that can…

New York Governor Andrew Cuomo has issued Executive Order 202.7, which temporarily suspends the rule requiring physical appearance before a notary public until April 18, 2020. Key points of the executive order:

Under the so-called three year rule, if an insured person transfers an insurance policy to an irrevocable life insurance trust, even though the insured may no longer retain any incidents of ownership, if he dies within the three year period following the transfer, the entire policy proceeds will be includable in the insured’s gross estate,…

When a partnership is formed partners contribute property and/or cash into the partnership. The partners “capital account” keeps a record of these contributions. The capital account increases or decreases as a function of what the partner puts in or takes out of the partnership. For example, taking losses is treated as taking something out of…

Pretty much everything you own is a capital asset. Your home, your tangible personal property (like furnishings), and your stocks and bonds are all capital assets. When you sell a capital asset, the difference between the basis in the asset and the amount you realized from the sale is a capital gain or a capital…

The Bank Secrecy Act (BSA) gave the Department of Treasury authority to collect information from United States persons who have financial interests in or signature authority over financial accounts maintained with financial institutions located outside of the United States. The BSA requires that a FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)…

Income Taxation of Life Insurance As a general principle, the proceeds of a life insurance policy paid by reason of the insured’s death are received income tax free by the beneficiary. This exclusion from income taxation applies regardless of whether the proceeds are paid to an individual, a partnership, corporation, or trust. Death benefit payments…

Life insurance is one of the most important tools in modern financial planning, but it is not always the most appreciated. It has a role to play in virtually all phases of the typical family’s economic life cycle. The purchase of life insurance is an important decision for you and your family. Your marital status,…

The SECURE Act, effective January 1, 2020, makes significant changes to the laws affecting IRA and 401(k) plans. Key items: You can now make IRA contributions beyond age 70½. Under the new law, you can continue to contribute to your traditional IRA past age 70½ as long as you are still working. Required minimum distributions…