Tax Perspectives Update for 2020
With the passing of the Consolidated Appropriations Act of 2020 in December, a number of tax law changes were made that may affect individual taxpayers.
Supreme Count Ruling Positive for Trust Beneficiaries in NC
The taxpayers won this one—at least in North Carolina. That was the result of a rare unanimous U.S. Supreme Court decision on June 21, 2019, that rejected North Carolina’s claim that it can tax the undistributed income from a non-grantor trust based in another state if the beneficiary is a North Carolina resident. A New…
Considering a Move to Save on State Taxes?
Now that the federal deduction for state and local taxes is gone, should I consider changing residency from my high income-tax state to one with lower or no state taxes?
Opportunity Zones Offer Big Benefits & Big Challenges
The Opportunity Zone investment program ushered in by the 2017 Tax Cuts and Jobs Act provides an unprecedented ability to reduce capital gains taxes. If an investor realizes and rolls a capital gain into a Qualified Opportunity Fund (QOF) this year and holds the investment for 10 years, he or she gets a step-up in…
Beware of Tax Refund Scam, IRS Warns
A new refund scam has emerged that threatens to ensnare thousands of unwary taxpayers who use direct deposit.
Save Yourself Some Money with a Donor-Advised Fund
QUESTION: I just lost my state and local tax deductions in the recent tax reform, and I have no mortgage interest to deduct. Is there anything I can do to lower my taxes? ANSWER: The new tax law eliminates miscellaneous deductions, and limits state and local tax deductions to $10,000. This means married taxpayers without…
College Funds Can Now Pay For Grade School and High School
Thanks to recent federal tax reform, you can now use your kids’ college funds, or 529 plans, to pay for up to $10,000 a year for primary and high school expenses.