Understanding the New Pass-through Tax Deduction

Of the many modifications in effect for the 2018 tax year, perhaps the most exciting change is the new Pass-through Tax Deduction. The deduction has many other names: Its official title is the Qualified Business Income (QBI) deduction, it is also known as the Section 199A deduction and the small business tax deduction. Whatever title [...]

By |2019-07-26T11:10:15-04:00July 26th, 2019|

Real Estate – The Tax Advantaged Investment

You may have heard, or read, something similar to: “If you don’t want to pay taxes, invest in real estate.” While this is not entirely accurate, real estate investments are extraordinarily tax efficient. To understand this properly it is necessary to understand the mechanics of a typical real estate investment. For illustration purposes let’s focus [...]

By |2019-07-26T11:12:12-04:00July 26th, 2019|

Healthcare Expenses and the HSA Account Part 2: HSA Plans as a Savings Vehicle

“Saving.” To many of us this is something we think about only in the theoretical sense. We may think: “If only there would be a savings plan that is simple to set up, can be fully automated, is tax deductible and can be accessed easily should the need arise, then I could turn saving into [...]

By |2018-07-04T12:22:22-04:00January 23rd, 2018|

Finding a place for the corporate tax structure under the Tax Cuts and Jobs Act

The enactment of the Tax Cuts and Jobs Act (TCJA) has renewed interest in the traditional corporate tax structure. The entity commonly known as the C Corporation; is taxed separately from its owners at both the Federal and State levels. The resulting second level of taxation on shareholder dividends, has stymied their use in the [...]

By |2018-07-04T12:22:53-04:00January 20th, 2018|

Healthcare Expenses and the HSA Account Part 1: Saving Money with a High Deductible Health Plan

Healthcare expenses are on what appears to be a ceaseless climb despite the so-called “Affordable Care Act.” As a cost saving measure, it is important to utilize tax deductions where available. Many of us are familiar with pre-tax health insurance premiums; however the Health Savings Account (HSA) account remains somewhat of an unknown. Employees and [...]

By |2018-06-27T11:26:34-04:00January 18th, 2018|

Estate Planning Techniques Part 3 – Irrevocable Life Insurance Trusts

Long considered a necessity by the insurance industry, the Irrevocable Life Insurance Trust (ILIT) is one of the best estate planning tools. An ILIT combines the leverage inherent in a whole life insurance policy, with the nuances of estate planning. The basic idea is quite simple. An Irrevocable Trust is established by an individual or [...]

By |2018-07-04T12:26:42-04:00March 20th, 2017|

Estate Planning Techniques Part 2 – Intentionally Defective Grantor Trusts

A very popular estate planning tool is the Intentionally Defective Grantor Trust (IDGT). Despite the implication of the name, there is nothing defective about an IDGT. Rather, it is an extremely cunning tool for the avoidance of estate taxes. An IDGT is established with two opposing goals. The first goal of the trust is to [...]

By |2018-07-04T12:30:16-04:00March 14th, 2017|

Estate Planning Techniques Part 1 – Grantor Retained Annuity Trusts (GRATs)

No one likes to pay taxes. This is especially true for wealthy individuals, who already pay the vast majority of the taxes collected. Gift and estate taxes are especially reviled, as they are essentially a second tax on assets already taxed when earned. There are many methods employed by the wealthy to avoid these taxes. [...]

By |2018-07-04T12:30:47-04:00March 1st, 2017|
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