estate tax

March/April 2021 Tax Tips

March/April 2021 Tax Tips

Using qualified small business stock to attract investors For businesses in need of funding, qualified small business stock (QSBS) can be a powerful tool for attracting investment capital. It entices investors with the prospect of tax-free gains on the sale of the stock (subject to certain limitations), provided they hold it for more than five…

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Connecting your succession plan to your estate plan

Connecting Your Succession Plan to Your Estate Plan

For any business owner, contractors included, putting together a succession plan may seem like an overwhelming task. Often, among the most difficult things to conceptualize is precisely how to connect — and beneficially integrate — your succession plan with your estate plan. Here are few ideas to consider. Sell your shares By selling your ownership…

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estate tax

Why It’s Important to Plan for Income Taxes as Part of Your Estate Plan

As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted…

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fair market basis rules

Take Advantage of a “Stepped-Up Basis” When You Inherit Property

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. Fair market value rules Under the fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death value. So,…

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tax tips

March/April 2020 Tax Tips

Businesses: It’s time to revisit your sales tax obligations It’s been more than a year and a half since the U.S. Supreme Court ruled in South Dakota v. Wayfair that states may require out-of-state sellers to collect sales and use tax even if they lack a physical presence in a state. Since that time, most…

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refuse inheritance qualified disclaimer

5 Good Reasons to Turn Down an Inheritance

You may use a qualified disclaimer to refuse a bequest from a loved one. Doing so will cause an asset to bypass your estate and go to the next beneficiary in line. What are the reasons you’d take this action? Let’s take a closer look at five reasons: 1. Gift and estate tax savings This…

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couple in retirement considering taxes

Thinking About Moving to Another State in Retirement? Don’t Forget About Taxes

When you retire, you may consider moving to another state — say, for the weather or to be closer to your loved ones. Don’t forget to factor state and local taxes into the equation. Establishing residency for state tax purposes may be more complicated than it initially appears to be. Identify all applicable taxes It…

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