Chris Anderson of Adams Capital describes the differences between personal goodwill and enterprise goodwill in this article and discusses how these distinctions can have a far-reaching impact for owners of closely held companies, from obtaining accurate valuations to making confident decisions, or segregating marital assets in a divorce.
SMRU 1940779 | Exp. 5/24/24
A potentially overlooked tax provision, Internal Revenue Code Section 1202, may allow certain taxpayers who sell stock in a “qualifying small business” to exclude from taxation a percentage—50%, 75%, or even 100%—of the gains realized upon the sale of stock. This article explores some of the benefits and requirements of this possibly advantageous non-elective tax provision. New York Life and its agents do not offer legal or tax advice.
SMRU 1944796 | Exp. 7/11/24
A basic understanding of how to maximize the Internal Revenue Code Section 199A pass-through business deduction is a must for any estate planner, according to well-known attorney Steve Oshins, who describes in this article from The Nautilus Group how certain taxpayers can deduct 20% of their qualified business income using what he calls the “Magical W-2 Formula.” New york Life Insurance Company and its agents do not provide tax, legal or accounting advice.
SMRU 1845375 | exp. 3/8/24
The release of the highly anticipated revised RMD tables combined with the recent passage of the original SECURE Act and the likely passage of “SECURE 2.0” has raised many questions on how the revised tables work in the context of the new retirement planning legislation. This article addresses these questions and can help identify new planning opportunities for additional tax deferral.
SMRU 1941210 | exp. 5/26/24
Spousal lifetime benefit or access trusts, also known as SLATs, involve one spouse putting selected assets into a trust for the other spouse. This is a common technique in situations where parents may not be ready to completely hand over assets to their children or an individual wants the protection a trust provides but also wants to retain access to those assets. Listen to attorney Steven Novak of The Blum Firm describe SLATs and how to use them in this short video and see if this strategy could be useful for you.
SMRU 1866313 | Exp. 5/23/24
When considering a charitable bequest, it’s sometimes difficult to make a choice between assets. Which should I leave to the charity, and which should I leave to my heirs? In this video, Heather Davis, CVP with The Nautilus Group®, a service of New York Life, explains the tax implications of your choices and how to make an informed decision that can minimize tax exposure while maximizing your legacy.
SMRU 1866309 | Exp. 5/23/24
Noted CPA Robert Keebler, founder of Keebler & Associates, describes why clients with estate tax concerns might prefer to create a trust for both their children and their grandchildren. Using a generation-skipping transfer trust, Keebler says you’ll have the ability to transfer property to both generations and avoid estate tax. Watch this short video to learn more. New York Life Insurance Company and its agents do not provide tax or legal advice.
SMRU 1866311 | Exp. 5/24/24
Did you know that depending on where you live, you may be subject to state-level estate or inheritance tax? Seventeen states and the District of Columbia currently impose some type of state-level estate tax or inheritance tax which can affect both residents and nonresidents. Read this article to learn six surprising facts about state estate taxes that could impact your financial future.
SMRU 1940777 | Exp. 5/25/24
It’s a whole new world for estate planning – from an all-time high estate tax exemption that may soon be cut in half (without further action by Congress), to the prospect of higher taxes, larger inheritances, complicated family dynamics, rising rates of divorce and litigation, and electronic data – the list goes on and on. In this environment of uncertainty, estate planning attorney Marvin Blum provides these 10 questions that clients and their planners can explore to identify clients’ most pressing needs in this rapidly changing estate planning environment.
SMRU 1928493 | Exp. 2/4/24
How can married, high net worth couples incorporate “tax-wise” strategies into their estate planning documents? Read this article from The Nautilus Group to learn about three basic strategies that can help to eliminate or minimize estate and transfer taxes and the key benefits and disadvantages of each.
SMRU 1928494 | Exp. 2/4/24
One notable tax benefit of life insurance is that death proceeds are generally received by a beneficiary free of any income taxation. However, this benefit may be lost if a policy is transferred in a manner that the “transfer-for-value” rule is triggered, creating a “trap” for ordinary individuals who may transfer policies for estate or business planning purposes without recognizing that consideration is being provided for that transferred policy.
The information in this article describes why planners, tax advisors, and policyholders should be vigilant to ensure that no consideration exists or that the transfer falls within one of the exceptions to the transfer-for-value rule and can help to both avoid unexpected tax outcomes and ensure that the policy’s death benefit may remain income-tax free. Please note that New York Life Insurance Company and its agents do not provide tax or legal advice.
SMRU 1928496 | Exp. 2/4/24
Parents caring for those with special needs are often unaware of the substantial tax benefits available to them and could miss out on potential tax deductions and reductions in their tax liability. In this article, Thomas Brinker, Jr., LL.M., CPA, focuses on the medical expense and home equity interest expense deductions pertaining to home-related capital expenditures to help parents of individuals with special needs and their advisors be aware of some of the unusual tax code provisions that may be applicable.
SMRU 1916711 | Exp. 10/8/23
Setting up an irrevocable trust can be a long and arduous process, but even after you’ve drafted and executed the trust and finalized the funding of the trust’s assets, you still may not be done. This article looks at the IRS requirements for reporting asset transfers to various types of trusts and explores situations where it may be beneficial to report transfers even when it’s not required.
SMRU 1916711 | Exp. 10/8/23
Life insurance benefits are typically free of income tax but can be subject to estate tax, which in some cases may be as high as 40%. Transferring ownership of a policy to a trust or third party is a common way to reduce that tax liability, however, the insured must live for 3 years after the transfer in order to benefit from this strategy. In this interview, Winstead PC attorney John Bergner describes ways to accomplish this tax saving strategy without being subject to this 3-year tax rule. Listen to his insights and learn how you can better protect your assets from potential estate tax.
New York Life Insurance Company and its agents do not provide tax, legal or accounting advice. Winstead PC and John Bergner are not affiliated with New York Life Insurance Company or its affiliates. SMRU: 1918520 Exp: 11/1/2023
Attorney Jeff Chadwick from Winstead PC explores how to optimize lifetime gifting strategies in this informative article, which addresses transfer tax planning in light of the current legislative uncertainty. For most people, Chadwick says, it is more appropriate to plan for income tax savings rather than transfer tax savings, which will require creative solutions designed to increase exemptions prior to 2026.
SMRU 1852183 | exp. 2/19/23
Tax law repeal is likely on the horizon, but the timing and scope are still uncertain. Creating an irrevocable trust to utilize the increased lifetime gift tax exemption amounts may be a wise move, and this article shows you how you can add flexibility to the trust so you can adapt to changes as they are enacted.
SMRU 1882427 | Exp. 12/8/22
Did you know that the Tax Cuts and Jobs Act of 2017 was one of the most significant tax legislation acts signed into law since the Tax Reform Act of 1986? This timeline illustrating the fluctuations in US estate tax laws is a great tool for understanding how – and why – the law has changed over the past 220 years. Is it time to update your estate plan?
SMRU 1889661 | Exp 3/2/2023
There are three types of income buckets – taxable, tax-deferred, and tax-free. What’s in your bucket?
SMRU 1859097 | exp. 4/4/24
How can business owners build wealth for their own retirement while trying to reduce their income taxes? Watch this video.
SMRU 1779963 | exp. 5/11/2022