The “Setting Every Community Up for Retirement Enhancement Act” (the SECURE Act) is part of the spending bill legislation passed by Congress, which is now awaiting the President’s signature, effective January 1, 2020. The SECURE Act significantly changes the Required Minimum Distribution (“RMD”) requirements for inherited retirement accounts by delaying the required beginning age…. Read More »
Posts Categorized: Tax
When Do I Apply for “STAR” (and Other) Property Tax Exemptions?
The School Tax Relief “STAR” program offers property tax relief to eligible homeowners in one of two ways: STAR credit check – you receive a check each year instead of a reduction in your taxes STAR tax exemption – you receive a reduction in the school tax portion of your real estate taxes Basic Versus… Read More »
IRS Ruling on PPP Loan Forgiveness – NOT GOOD NEWS!
For those who have Paycheck Protection Program (PPP) loans, the IRS has taken the position that you can not deduct business expenses that were paid from the PPP proceeds if those proceeds are forgiven. Under the CARES ACT, loans that are forgiven are not subject to income taxation. Revenue Ruling 2020-27 Now, the IRS has… Read More »
How Are Inherited Assets Taxed When Sold?
There is a lot of confusion regarding what happens when inherited assets are sold. Let’s clear up the confusion as to the tax treatment of inherited assets by way of an example. An Example of How Inherited Assets are Taxed in NY Sheila owns her house worth $500,000, a brokerage account worth $300,000, and an… Read More »
What Do I Need to Know About New York State Gift and Estate Taxes?
You have worked hard to accumulate assets so that you may pass your legacy to your family. There is no better time to explore what you need to know about New York State gift and estate taxes. A gift tax is a tax that is levied on assets transferred by a person to a beneficiary… Read More »
What should I consider before making a gift? – Intention of the gift
Before giving a gift to someone, think about what your intention is for the gift because there may be a better way to ensure your intentions while minimizing or eliminating any gift tax implications. Some transfers are not subject to the gift tax and therefore can be made for any amount. Here are some examples… Read More »
What should I consider before making a gift? – Value of the gift
We typically advise clients to think of the value of the gift before making gifts. Let’s take a look at why. Value of the Gift Although the annual exclusion from Federal gift taxes is $15,000, this doesn’t mean that you will be taxed on any gift greater than $15,000 in value. If you make a… Read More »
IRS Defers Tax Payment Due Dates
We hope you and your loved ones continue to be safe and healthy during this medical crisis. Recently (3/20/2020) the U.S. Treasury Department and Internal Revenue Service (IRS) issued updated guidance extending the due date to file a federal income tax return from April 15, 2020 to July 15, 2020 for any individual, trust, estate,… Read More »
The SECURE Act – Non-retirement changes
The Setting Every Community Up for Retirement Enhancement Act (more commonly referred to as the SECURE Act) has received a lot of buzz in the estate and retirement planning communities lately thanks to the significant changes it has made to laws related to retirement. How will the SECURE Act impact my life? Although the buzz… Read More »
Need to Know Tax Facts for 2020
Every April 15 millions of taxpayers throughout the United States file their income tax returns. Prior to filing their returns many taxpayers will go through their records to organize their income, deductions, and credits, and meet with their tax advisors/preparers to review and finalize their income tax returns. You can take this opportunity to speak… Read More »
Charitable Gift Giving – When should I give to a charity?
You can give to a charity whenever you are able and willing to make a donation. However, for tax purposes, if you want the contribution to be tax-deductible in a given year you must make the donation by the end of the tax year. A contribution is deductible in the year in which it is… Read More »
Charitable Gift Giving – How much can I deduct?
In general, your total charitable deductions are limited to no more than 60% of your adjusted gross income (AGI). However, only donations to certain organizations as defined by the IRS qualify for the highest limit. These organizations include, but are not limited to, churches, educational institutions, and hospitals. Only certain qualified conservation contributions are eligible… Read More »
Charitable Gift Giving – Is the charity a qualified organization under IRS rules?
Not all donations are eligible tax deductions. In order to be eligible for a charitable contribution tax deduction, the recipient charity must be duly qualified by the Internal Revenue Service (IRS). This means that gifts to needy relatives, friends, neighbors, and any other person or group who lacks tax-exempt status as determined by the U.S…. Read More »
Charitable Gift Giving – Am I eligible to deduct the charitable contribution?
In order to get the potential tax benefits of a charitable contribution of money or property, you must file an IRS Form 1040 and itemize your deductions on “Schedule A.” If you do not file an IRS Form 1040 then there is no reason to take a charitable contribution as a deduction since you likely do… Read More »
What if I Have a Contract to Reduce My Property Taxes, But I Want to Sell My Home?
A constant concern here on Long Island is the continued increase in Property Taxes and the ever-increasing cost of living. The application for state program real estate tax exemptions (such as Basic STAR, Enhanced STAR or Veterans exemptions) may help to ease the burden, but there are instances where homeowners may not be eligible for… Read More »
Spam, Scams and Phishing
Scams are on the rise! Whether it be in the form of a phone call, email, or direct mailing, scam artists are trying to steal your personal information. The IRS has continuously warned taxpayers to think twice before providing any sensitive information to anyone, even if the request appears to come from the IRS. Scams… Read More »