You’ve found the love of your life and you’re ready to tie the knot. As a friend, I’m delighted for you. But as an accountant it’s my duty to warn you that getting married has serious tax implications. Want to learn how federal income taxes, estate taxes, and gift taxes will impact your new married status? Before you get hitched, don’t miss my new article titled Tax … [Read more...]
Estates
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Inheriting an IRA? Here’s how to slash your tax bill
Ben Franklin once said "Nothing is sure but death and taxes.” Ben was certainly right about death, but he was (understandably) unaware of some recent, money-saving changes in the tax law. You see, if your spouse dies, and you inherit his or her IRA, you can now get some welcome relief from heavy taxes. Want to find out how to handle an inherited IRA the smart way? Don’t … [Read more...]
How to protect insurance death-benefits from estate taxes
Careful life insurance planning has always been important. But come December 31, 2012, smart planning will be more important than ever! That’s because the current $5.12 million exemption from estate taxes expires on that date, and lawmakers have pegged the 2013 exemption at just $1 million and increased the tax rate from 35 to 55 percent! But don’t despair. With tax-smart … [Read more...]
How to use estate tax rules to avoid income tax
Want to create a tax-shelter that eliminates capital gains, recapture taxes, and gives your heirs a nice tax break? All you have to do is die. Oh, I know you may not want to rush to take advantage of this extreme tax strategy but you should know that keeping your home until death has distinct advantages. At death, your estate avoids both capital gains and recapture taxes, … [Read more...]
Tax Tips for the estates of those who died in 2010
IMPORTANT: The tax law gives two choices to the executors of estates of decedents who died in 2010: Choice #1 is to apply the old 2010 rules Choice #2 is to apply the newly enacted 2011 and 2012 estate tax rules If you are the executor of an estate (of someone who died in 2010), which choice makes sense for you? You’ll find answers in our new article titled Tax Tips: Tax … [Read more...]