Tax Planning

The IRS has compiled its annual list of common tax scams to remind taxpayers to use caution during tax season. The list is designed to protect taxpayers from potentially abusive arrangements, ranging from preparer fraud, identity theft and bogus tax maneuvers.  These schemes put people at financial risk (including penalties and interest) and increase the chances that they could become victims of identity theft.

The bad news is that as you approach your golden years, that tax bill is about to come due. But there is at least some good news, too.

The office of the chief counsel of the Internal Revenue Service (IRS) recently made a 180-degree reversal of the agency’s long-held position on tax reimbursement clauses in grantor trusts. The move could have significant tax implications for those who use the trusts as wealth transfer and tax information tools.

The US Supreme Court heard oral arguments in December in Moore v. United States, a case that could have major ramifications for the US tax system. The plaintiffs sued for a refund of a tax bill of less than $15,000, but the court’s decision could affect some of the basic tenets of the tax code.

These days when we talk about inflation, we likely discuss how much more we have been paying for food and gasoline. But inflation also should factor into our tax & financial planning for 2024.

The Internal Revenue Service has issued new guidance for establishing the cost basis of assets held in an irrevocable trust at the death of its owner. Essentially, the ruling states that the cost basis for such assets should not be adjusted because they were not acquired or passed from the decedent to the beneficiary under the pertinent provisions of IRC § 1014(a).

529 plans are tax-advantaged education savings vehicles and one of the most popular ways to save for education today. Much like the way 401(k) plans revolutionized the world of retirement savings a few decades ago, 529 plans have changed the world of education savings.

Looking to trim your tax bill? Contributing the maximum amount to your 401(k) can help lessen your taxable income.

Just when you thought you had an up-to-date retirement plan solidified, accounting for all the changes of the Setting Every Community Up for Retirement (SECURE) Act of 2019, Congress wrapped up 2022 with the SECURE 2.0 Act.

Following are some of the major categories and tasks our advisors and I are recommending for clients to get their financial houses in order.

With a well-planned investment strategy, you can navigate today’s market downturn with confidence and get the most out of your golden years. 

So far this year the markets are broadly down. You likely have unrealized losses in your portfolio. Tax-loss harvesting may be a strategy to consider, but harvesting those losses now could have a negative outcome in the long run.