For anyone seeking to preserve family wealth, developing a strategy to minimize estate transfer taxes is critical. Without a well-crafted mechanism to pass assets down to children, grandchildren, and future heirs, recurrent taxation can erode the value of an estate with each successive generation. By protecting your wealth from repeated exposure to transfer taxes—as well Read more about Enduring Generational Wealth – Dynasty Trusts & How the TCJA Enhanced Them[…]

In a recent, highly publicized case, the IRS rejected a tax settlement proposal known as an Offer in Compromise (OIC) from actor Wesley Snipes. Snipes sought to pay less than 5% of his massive tax debt of around $25 million. The IRS agents handling the case (called Revenue Officers, or “ROs”) flatly denied the proposal, Read more about Reasonable Collection Potential and the IRS Offer in Compromise[…]

While many families enjoy owning vacation homes and using these properties for getaways and gatherings, a vacation home is a unique type of asset that requires careful planning regarding its ownership structure. The type of ownership format chosen will affect a wide range of legal, financial, and procedural factors including asset and creditor protection, property Read more about The Vacation Home LLC and Why It Is Used[…]

It’s the oldest and simplest formula for accumulating wealth: Live the “buy low, sell high” dream by acquiring, holding, and then selling property at a tidy profit. Unfortunately, resulting capital gains taxes could amount to persistent leaks from an investor’s wealth-building pool. Every sale of investment or business property can create tax liability, reducing the Read more about The IRS Code Section 1031 Like-Kind Exchange: A Tax Planning Technique Used By Savvy Real Estate Owners[…]

NOTE:‎ ‎This blog post was revised on January 27, 2019 to reflect IRS announced clarifications regarding the QBI deduction. One of the more dramatic provisions of the Tax Cuts and Jobs Act of 2017 (“The Act”), passed at the end of 2017 and effective January 1, 2018, is known as the “Qualified Business Income Deduction” Read more about The IRS QBI Pass-Through Deduction Explained[…]

Traditional U.S. business organizational structures reflect a belief that making a profit and having a positive impact are competing or even mutually exclusive goals. Historically, incorporated entities have been forced to choose one path or the other. Nonprofit organizations focus on promoting the public good and cannot have shareholder-owners who benefit financially from operations. Corporations Read more about The Public Benefit Corporation: Business and Social Responsibility Can Coexist[…]

The type of IRA one chooses has major tax and estate planning implications. In a previous article, I looked at the advantages of Self-Directed IRAs, noting that they are best suited for risk-tolerant, exceptionally knowledgeable investors. By contrast, a strong argument can be made that creating a Roth IRA is a wise choice for everyone, Read more about Everyone Should Have a Roth IRA[…]

For most people, an IRA is a “set it and forget it” portfolio item. Contributions to the account are usually automated, and the investments making up the IRA—typically stocks, bonds, CDs, and mutual funds—require little account holder oversight. That’s all fine and good, but limited risk means limited returns. For those who want to take Read more about Using a Self-Directed IRA to Grow Your Retirement Nest Egg[…]

When the U.S. Supreme Court issued its 5-4 decision on South Dakota v. Wayfair Inc., the days of dodging sales tax by shopping online came to an end in America, with a few minor exceptions. Twenty years ago, such a change in e-commerce tax rules would have sent shockwaves across the still-novel Internet. Yet the Read more about New Internet Sales Tax Rules – Is Wayfair Way Fair or Way Unfair?[…]

A Life Estate is a simple, best-of-both-worlds tool that includes an ironclad guarantee that the current owner of a home (the life tenant) will never jeopardize his or her lifetime right to occupy and enjoy the home, and provides for a swift and effortless transfer of the home when the life tenant passes away. What Read more about Using a Life Estate Deed for Lifelong Security and Tax Savings[…]