Tax Planning

February 24, 2025The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated the federal tax deduction for union dues from 2018 through 2025. However, certain states, such as New York, allow union members to deduct these dues on their state income tax returns. Union members should consult a tax professional to understand their specific state laws so… read more…

February 20, 2025South Dakota has no state income tax, which can attract many individuals and businesses. To enjoy these benefits, you must officially become a resident. This means that you need to demonstrate that The Mount Rushmore State is your main home. You can do this by getting a South Dakota driver’s license, registering to vote and… read more…

February 20, 2025To qualify for tax benefits in Texas, which includes no personal income tax, you need to meet specific residency requirements. Establishing yourself as a true resident involves more than just relocating. You must clearly show your intent to make the Lone Star State your permanent home. This includes getting a driver’s license there, registering to… read more…

February 20, 2025Florida has no income tax. To take advantage of this benefit, it’s important to meet the Sunshine State’s residency requirements. You need to update your driver’s license, voter registration and spend most of the year in Florida to establish residency. As an added step, you may also want to talk to a financial advisor about… read more…

February 20, 2025In California, real estate transfer tax is a fee levied during the sale of a property. It is calculated based on the property’s value with additional municipal fees sometimes applied. Whether sellers cover transfer tax in California often depends on local customs. Many counties expect the seller to pay, while others shift the responsibility to… read more…

February 13, 2025The IRS credit for the elderly or the disabled is a tax benefit designed to help older adults and individuals with qualifying disabilities reduce their income taxes. Outlined in IRS Publication 524, this credit is available to individuals who meet specific age, income and disability criteria. The goal is to provide financial relief to those… read more…

February 12, 2025If you want to meet Wyoming residency requirements for taxes you must have a primary and permanent home in the state. Factors such as property ownership, vehicle registration, voter registration and time spent in the state also contribute to determining residency status. Additionally, individuals may need to update their driver’s license and mailing address while… read more…

February 12, 2025Alaska residency requirements determine whether an individual qualifies for state tax benefits, including the Permanent Fund Dividend (PFD). To establish residency, a person typically must be physically present in the state with the intent to remain indefinitely. Maintaining residency often involves actions like obtaining an Alaska driver’s license, registering to vote and not claiming residency… read more…

February 6, 2025Filing taxes can be challenging, and it’s easy to make mistakes like math errors, missing deductions, or choosing the wrong filing status. These mistakes can cause stress and financial issues. However, it’s important to know that if you do make an error, you can fix it to avoid penalties or interest. The IRS offers ways… read more…

February 6, 2025Indirect taxes are charged on goods and services, not on income or profits. These taxes are collected by businesses, such as retailers or producers, who then pass the payments to the government. The cost of these taxes is built into the price of products or services, often going unnoticed by consumers. Indirect taxes include various… read more…

February 5, 2025The expanded accounting equation builds upon the basic accounting equation’s use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals. This equation, often expressed as Assets = Liabilities + Owner’s Capital + Retained Earnings, offers a more detailed view of a company’s finances and helps track how these elements… read more…

January 21, 2025Tariffs can be used by government policymakers to protect domestic industries from competition and correct trade imbalances, but they also influence exchange rates and currencies in ways that affect business profits and investment decisions. For example, if adding or raising tariffs  reduces imports from a particular country, it can cause that country’s currency to be… read more…

September 21, 2025The division of tax debt during a divorce depends on when the debt was incurred and what state laws are, among other factors. It’s possible that responsibility for back taxes is shared or assigned to one spouse, with that decision often based on whether the debt was incurred before or during the marriage. However, IRS… read more…

January 8, 2025Tariff and non-tariff barriers play important roles in shaping trade policies and economic relationships between countries. While both serve as tools for regulating imports and exports, they differ significantly in their application and impact. Tariffs are essentially taxes imposed on imported goods, designed to make foreign products more expensive and less competitive when compared with… read more…

December 10, 2024A Reverse Morris Trust is a financial strategy that allows a company to divest certain assets while minimizing tax implications. This arrangement involves merging a subsidiary with another company, enabling the original firm to distribute assets without triggering taxes on gains. Often used by large corporations aiming to offload underperforming or non-core assets, a Reverse… read more…

November 13, 2024Profits from a home sale are subject to capital gains taxes. This sale will count toward your total capital gains for the year, and will be taxed at the normal rates of either 0%, 15% or 20%.  That said, when it comes to home sales, the IRS allows you to exempt a portion of the… read more…

October 27, 2024A liquidating dividend, unlike regular dividends that are paid from a company’s profits, is distributed from the company’s capital base during the process of winding down operations or liquidating assets. This dividend returns part of the investor’s original investment rather than a portion of earnings. Liquidating dividends are taxed differently from regular dividends, as they… read more…

October 4, 2024Phantom taxation occurs when individuals or businesses are required to pay taxes on income they haven’t actually received. Phantom income can arise with investments such as partnerships, real estate or mutual funds when taxable income is reported but not distributed to the taxpayer. Though the income is phantom, the tax liability is real and must… read more…

April 4, 2025Capital gains tax on commercial property depends on several factors. Factors include how long the property was held and the taxpayer’s income level. When a commercial property is sold for more than its original cost basis, the profit, or capital gain, is subject to taxation. Knowing how these gains are calculated can help you identify… read more…

July 12, 2024Employee stock purchase plans (ESPPs) are benefits offered by companies to help employees invest in company stock at a discount. These plans are designed to encourage ownership and align employee interests with those of the company. Understanding the tax treatment of ESPP contributions can help employees make the most of this benefit. Specifically, many may… read more…

February 18, 2026A limited liability company (LLC) does not provide inherent federal tax benefits for rental property ownership. Rental income, deductions and depreciation are generally treated the same whether property is held personally or through an LLC. Even so, the legal structure of an LLC can influence how certain tax rules apply when you own and manage… read more…

April 2, 2026If you inherit or leave a certificate of deposit (CD), some taxes may apply. The CD’s principal passes without income tax, but any interest earned after death is taxed as ordinary income to the heir. Federal estate tax only applies if the estate exceeds the exemption, and there is no federal inheritance tax, though some… read more…

April 2, 2026Understanding this aspect of tax strategy is crucial for investors looking to optimize their financial outcomes. In essence, the IRS allows taxpayers to use capital losses to offset capital gains, which can potentially reduce the amount of tax owed. Short-term capital losses, which occur when an asset is sold at a loss within a year… read more…

March 13, 2025As you transition into retirement, understanding the financial implications of your health insurance premiums becomes increasingly important. One common question that arises is whether these premiums are tax deductible. The answer can significantly impact your financial planning and tax strategy during your golden years. Generally, health insurance premiums can be deductible if you itemize your… read more…

July 8, 2024Approximately 40% of households pay taxes on their Social Security benefits, according to the Social Security Administration. If you do owe taxes on your benefits, managing them effectively could save you a lot of money. If you need help planning for Social Security or taxes in retirement, consider working with a financial advisor. However, there… read more…