August 14th, 2020 by Kim Chen
An intrafamily loan may be an attractive estate planning tool if you’ve already used up your gift and estate tax exemption or if you wish to save it for future transfers. But if you have exemption to spare, forgiving an intrafamily loan allows you to transfer the entire loan principal plus any accrued interest tax-free, […]
August 7th, 2020 by Kim Chen
The Setting Every Community Up for Retirement Enhancement (SECURE) Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Act have had a direct effect on IRAs and estate plans. The CARES Act waives required minimum distribution rules for IRAs (and certain defined contribution plans) for calendar year 2020. If you’re fortunate enough that you […]
July 31st, 2020 by Kim Chen
If philanthropy is an important part of your legacy, now is a good time to make as many donations as possible. The novel coronavirus (COVID-19) pandemic and the resulting economic fallout is dealing a crushing blow to charitable organizations. Your gifts reduce your taxable estate, and the Coronavirus Aid, Relief, and Economic Security (CARES) Act […]
July 22nd, 2020 by Kim Chen
If you’re planning to move abroad, it’s important to understand the potential tax and estate planning implications. If you don’t, you could be hit with unpleasant surprises. For example, if you’re a U.S. citizen, U.S. taxes will apply even after you move to another country. So you may be subject to gift and estate taxes […]
July 13th, 2020 by Kim Chen
It’s often hard for married couples to save for retirement when one spouse doesn’t work. An IRA contribution is generally only allowed if you have compensation. However, an exception exists. A spousal IRA allows a contribution to be made for a nonworking spouse. Under the rules, a couple can contribute $6,000 to an IRA for […]
July 3rd, 2020 by Kim Chen
Many taxpayers with student loans have been hard hit by the economic impact of COVID-19. The CARES Act contains some help. It allows borrowers with federal student loans to stop making monthly payments until Sept. 30, 2020. If you do make student loan payments, you may be able to deduct the interest on your tax […]
June 26th, 2020 by Kim Chen
The coronavirus (COVID-19) pandemic has affected many Americans’ finances. You may have questions about the implications. For example, if your employer is requiring you to work from home, can you claim home office deductions on your tax return? Unfortunately, if you’re an EMPLOYEE who telecommutes, home office expenses aren’t deductible through 2025. What about unemployment […]
June 21st, 2020 by Kim Chen
You still have time to make your 2019 traditional and Roth IRA contributions. The deadline is generally April 15 but because of the novel coronavirus (COVID-19) pandemic, the IRS extended the deadline until July 15, 2020. If you qualify, deductible contributions to traditional IRAs can lower your 2019 tax bill. Even nondeductible contributions can be […]
June 15th, 2020 by Kim Chen
The CARES Act contains a range of relief, notably the “economic impact payments” that will be made to people under a certain income threshold. But the law also makes some changes to retirement plan rules. The additional 10% tax on early distributions from IRAs and 401(k) plans is waived for distributions made between Jan. 1 […]
May 21st, 2020 by Kim Chen
The recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 pandemic. The employee retention credit is available to employers, including nonprofits, with operations that have been fully or partially suspended as a result of […]
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