INSIGHTS
We See Things Differently
When we’re not addressing clients’ needs for business and financial advisory, assurance or tax matters, we’re researching, learning and thinking about related subjects. Check out some of our thinking on a broad variety of topics that may impact your organization. And if you’d like to learn more about any of these topics, we’re always happy to talk.
Unused Funds from MD 529s Can Now Be Rolled Over to IRAs
As of January 2024, MD 529 account beneficiaries can now make limited tax-exempt rollovers to Roth IRAs.
When are Gift & Estate Taxes due?
Are you aware of the deadlines for gift and estate taxes? Unlike traditional tax schedules, gift, estate, and inheritance taxes don’t have a specific day each year that they are due, making it easy to accidentally miss a deadline resulting in penalties or late fees.
Tax Benefits for Active & Retired Military in Virginia
Our military consists of brave men and women who serve our country, often in dangerous conditions. Virginia offers a variety of tax benefits for active military personnel and veterans to help ease their financial burden.
Beware the Five-Year Rule for Roth IRA Withdrawals
What makes Roth IRAs so appealing, primarily, is the ability to withdraw money from them tax-free. But to enjoy this benefit, there are a few rules taxpayers must follow, including the widely misunderstood “five-year rule.” This article explains the ins and outs of this rule.
10 Red Flags for IRS Audits
Even though the overall IRS audit rate is currently low historically, it’s expected to increase as a result of provisions in the Inflation Reduction Act signed into law in August. So it’s more important than ever for taxpayers to follow the rules to minimize their chances of being subject to an audit. This article discusses some of the tax return items that might trigger scrutiny from the IRS.
Selling your home?
High demand for homes has created a seller’s market. Those thinking about selling their homes will want to determine whether they qualify for the home sale gain exclusion. This article details the exclusion’s requirements.
What a difference six months can make
Those who have money invested in the stock market are well aware of potential volatility. Needless to say, this volatility can affect a person’s net worth. Something many investors might not think about is the potential effect on estate tax liability. Specifically, if the value of stocks or other assets drops precipitously after a person’s death, estate tax could be owed on value that has disappeared. This article details how an executor can ease estate tax liability in this situation by electing to use an alternate valuation date.
Deferring a tax hit with a Sec. 1031 exchange
A Section 1031 exchange (also known as a like-kind exchange) allows commercial or investment real estate owners to avoid capital gains tax when selling the property by swapping qualifying properties. This article notes that recent legislation has cracked down on Sec. 1031 exchanges, but currently it’s still possible to use this technique for qualified real estate transactions. A sidebar explains multiple-party transactions.
New Energy Credits for Individuals Under the Inflation Reduction Act
On August 16, 2022, the Inflation Reduction Act was signed into law. The new bill contains climate change measures and tax incentives to encourage Americans to reduce their carbon footprint. Depending on the purchase and purchase amount, it may qualify for up to $10,000 or more tax breaks and rebates.
Student Loan Forgiveness: How the New Measures Impact Individuals with Student Loans
On August 24, 2022, the Biden Administration and the U.S. Department of Education announced the student debt reform plan with student loan forgiveness measures. The plan has already been enacted, and borrowers could see forgiveness measures beginning in early October 2022.
The Student Debt Relief Plan: A Breakdown of the Coming Changes for Americans with Federal Student Loans
On August 24, 2022, the Biden Administration and the U.S. Department of Education announced the Student Debt Relief Plan. This is a multi-part plan to help Americans with federal student loans. The new plan includes some student loan forgiveness options and adjustments to current repayment measures.
Working Remotely From “Out of State” Can Be Taxing
During the COVID-19 pandemic, it’s been fairly common for people to work remotely from another state — across state lines from the employer’s place of business or even across the nation. Employees that fit that situation may need to file tax returns in both states, potentially triggering additional state taxes.
5 tax planning tips for retirees
There’s a common misconception that, after retirement, tax bills shrink, tax returns become simpler and tax planning is a thing of the past. That may be true for some, but many people find that the combination of Social Security, pensions and withdrawals from retirement accounts increases their income in retirement and may even push them into a higher tax bracket. This article provides five tax-planning tips for retirees.
Rental real estate: Determining if a property is a business or an investment
If you own rental real estate, its classification as a trade or business rather than an investment can have a big impact on your tax bill. The distinction is especially important because of the 20% Sec. 199A deduction for certain sole proprietors and pass-through entity owners. This article provides a brief overview of the deduction and rental real estate guidance related to it. A sidebar spotlights the IRS definition of “real estate professional” as it relates to this tax matter.
Oops, you overfunded your 529 plan
If money is held too long in a Section 529 college savings plan, there could be tax consequences. This article describes alternatives for savers who have overfunded their accounts.
Are you liable for “nanny taxes”?
When employing household workers — which may also include housekeepers, cooks, gardeners, health care workers and other employees — it’s important to understand the tax obligations, commonly referred to as “nanny taxes.” This article provides a quick review.
How the Build Back Better Plan Could Affect You if Signed into Law
On September 13, 2021, the Biden Administration announced a proposal called the Build Back Better plan. It’s still in its early stages, but here are some of the changes you could see if it is put into action.
Where’s My Refund?
