Adler & Adler Blog

In connection with plans for minimizing taxes, it should be noted that there is nothing improper or immoral in reducing or avoiding taxes by lawful means. No apology is necessary for any legally acceptable plan that will enable you to minimize state and federal taxes. As long as the transaction is bona fide, as long…

An applicable credit is allowed against the New York state estate tax when a New York taxable estate is not greater than 105% of the Basic Exclusion Amount. The Basic Exclusion Amount in 2019 is $5,740,000. POINT 1 – If the New York taxable estate is less than or equal to the basic exclusion amount,…

The doctrine of constructive receipt is an important principle of income tax law, which reflects the point that income can be realized even though no cash or other tangible property or services have actually been received. Simply stated, if a taxpayer has an unqualified right to receive property or money which would constitute income, then…

Also known as the section 199A deduction it was part of the 2017 Tax Cuts and Jobs Act. Section 199A of the Internal Revenue Code provides a deduction for qualified business income from a qualified trade or business operated directly or through a pass-through entity. The deduction has two components. Component 1 – Eligible taxpayers…

Follow these steps to protect yourself: Secure your computer. Use security software that updates automatically and includes a firewall, virus protection, malware protection, and file encryption. Give personal information only over encrypted and trusted websites. Use strong passwords and protect them. Beware of Phishing. Phishing is defined as “the fraudulent practice of sending emails purporting…

If a deceased taxpayer was a party to a financial arrangement providing that income which he earned is to be paid after his death to his estate or his heirs, such income is referred to as “income in respect to a decedent” (“IRD”). Income which the taxpayer was unconditionally entitled to receive prior to his…

For a divorce completed in 2019 and later alimony payments will no longer be deductible and recipients of alimony will no longer include alimony payment in their taxable income. Under prior tax rules, spouses paying alimony could deduct alimony payments on their tax return and the recipient of alimony had to pay income tax on…

A will is a legal document that sets forth your wishes regarding the distribution of your estate and the care of your minor children after your death. A last will and testament is among the most important legal documents that you will ever sign. Wills are the foundation of your estate plan and help protect…

1. Failure to Make a Proper Will or Living Trust and Revise It Periodically By failing to prepare a will or revocable living trust, a decedent surrenders the right to distribute his or her property and allows the state to assume that task. A will or revocable living trust enables the decedent to control the…

The Tax Cuts and Jobs Act nearly doubled the standard deduction. Thus, itemizing deductions will only makes sense if your total itemized deductions exceed the new standard deduction. In the 2018 tax year, the standard deduction for each filing status is: Single………………………………………………………………..$12,000 …….(was $6,350 in 2017) Married filing jointly. Qualifying widow(er) ………..$24,000 …….(was $12,700 in…