Tax

June 30th Deadline for BE-10, Benchmark Survey of US Direct Investment Abroad

Due to a recent law change, the BE-10 is a mandatory survey by the US Department of Commerce – Bureau of Economic Analysis (BEA) for any U.S. Reporter (individual, company, trust, estate, or non-profit) that has a 10% or greater, direct or indirect, ownership or control of the voting stock of a foreign entity at…

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Opening the “Back Door” to a Roth IRA

A potential downside of tax-deferred saving through a traditional retirement plan is that you’ll have to pay taxes when you make withdrawals at retirement. Roth plans, on the other hand, allow tax-free distributions; the tradeoff is that contributions to these plans don’t reduce your current-year taxable income.

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Information Released on 2015 Maryland Tax Amnesty Program

The Maryland Comptroller has issued information on the 2015 Tax Amnesty Program enacted during the 2015 legislative session.

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Supreme Court Removes Double Tax for Maryland Residents

In a highly anticipated decision, the U.S. Supreme Court has ruled that certain residents of Maryland are double-taxed on income earned in other states because the state doesn’t provide a full credit for the taxes paid on that income.

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Married with a Large Estate? Why You Still Need a Credit Shelter Trust

Even though portability now allows married couples to use up both spouses’ estate tax exemptions without having to make lifetime asset transfers or set up trusts, this “easier” path isn’t necessarily the better path. For couples with large estates, making lifetime asset transfers and setting up trusts can provide benefits that exemption portability doesn’t offer.

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Watch out for Tax Consequences When Hiring Telecommuters outside Your State

If you allow employees to telecommute, be sure to consider the potential tax implications. Hiring someone in another state, for example, might create sufficient nexus to expose your company to that state’s income, sales and use, franchise, withholding, and/or unemployment taxes.

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Tax Tips: Investors: Have Your Cake and Eat It Too

A good tax-planning technique is to sell a poor-performing security to “harvest” the loss and offset it against your capital gains. But what if you have high hopes for the security and would like to keep it in your portfolio? One strategy is to sell it at a loss and then buy it back at…

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The IRS is Watching … Understanding the Difference between an Employee and an Independent Contractor

It’s an age-old conundrum: determining whether a worker is an employee or an independent contractor. While it might seem like a simple question, it’s not. And the IRS is hot on the heels of any contractor who doesn’t understand the difference.

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How You Can Avoid a Huge Tax Trap: Beware of the Generation-Skipping Tax

As you plan your estate, don’t overlook the generation-skipping transfer (GST) tax. Despite a generous, $5.43 million GST exemption, complexities surrounding its allocation create several tax traps for the unwary.

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Roth or Traditional: Which is Better?

Roth IRAs allow you to withdraw contributions and earnings tax-free, if you meet certain requirements, so it’s no surprise that their popularity has soared in recent years. But don’t write off traditional IRAs and 401(k) accounts just yet. Under certain circumstances, traditional accounts may generate more retirement income than their Roth counterparts.

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