Owning a vacation home requires tax planning

A vacation home can be many things to different people. For example, it can be a relaxing refuge for friends and family, or the property can serve as an income-producing investment if you choose to rent it out when you’re not using it.

By temporarily doubling the gift and estate tax exemption, the Tax Cuts and Jobs Act (TCJA) opened a window of opportunity for affluent families to transfer assets tax-free. To take advantage of the higher exemption amount, many families that own businesses or other assets worth more than the pre-TCJA exemption amount are planning substantial gifts to their children or other loved ones during the next seven years.

Before the Tax Cuts and Jobs Act (TCJA), most business-related interest expense was deductible, although corporations couldn’t deduct interest paid to or guaranteed by a related party under certain circumstances. But for tax years beginning after 2017, the TCJA imposes a limit on business interest deductions, with exceptions for “small businesses” and electing real estate and farming businesses. This article explains why all businesses should evaluate the impact of the new deduction limit on their tax liability, and plan accordingly. 

These brief tips detail the IRS’s student loan repayment program that employers can provide to employees, examine the bills that may be included in Tax Reform 2.0 and explain the finalized regulations on the substantiation and reporting rules for deductible charitable contributions. 

In the month of December members of our staff collected diapers for the 16th annual Channel 94.1 Diaper Drive.

The Tax Cuts and Jobs Act introduced a variety of tax benefits for businesses. At the same time, the act placed limits on several tax breaks, including the amount of interest expense a business may deduct. This article takes a closer look at the business interest limit and possible exemptions for small businesses, and notes that some real property businesses may elect not to apply the business owners should be aware that the IRS is expected to issue future guidance on these matters in the coming months. 

Although the recent TAX Cuts and Jobs Act doesn’t get rid of the federal estate tax, it does contain several provisions that may significantly affect gift and estate tax planning. So individuals need to be proactive-and plan accordingly. This article discusses exemption changes and suggests several moves that may be helpful for estate planners. The article also explains the expansion of 529 plan tax benefits, which families can use to grow money tax-free for their children’s higher education, and notes some “kiddie tax” rate changes.

Helping kids understand money when they’re young will help them develop sound financial habits that pay off when they’re adults. Discussions about money can start early, but need to be tailored to the child’s age. This article offers several tips on coaching children by maintaining an open dialogue about finances and modeling sound money management-at every age.

These brief tips explain why donating a car to charity may not be the most tax-efficient strategy, detail what to address in an estate plan for a college-age child, and discuss new IRS compliance campaigns that target specific business-related tax issues.

The tax treatment of bitcoin and other “virtual currencies”–also known as “cryptocurrencies”–is widely misunderstood. But if one invests in virtual currency, uses it to pay for good or services, or receives it as a payment for goods or services, failure to understand the tax obligations can have serious consequences. This article explains the IRS policies regarding virtual currencies.