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Options for Overfunded or Unused 529 College Savings Accounts

Section 529 plans can be a tax-smart way to save for college and other qualified education expenses. Contributions to these plans aren’t deductible for federal tax purposes, but earnings and gains accumulate federal income tax-free. Then you can take federal-tax-free withdrawals to cover qualified education expenses. What happens if a 529 account turns out to

Midyear Tax Planning for Small Businesses and Owners

Summer isn’t just barbeques and baseball. It’s also a good time to think about ways to cut your 2023 business tax bill. Here are four planning ideas for small business owners to consider, assuming there won’t be any changes to current federal tax laws at least through 2024. 1. Establish a Tax-Favored Retirement Plan If your

Tax Planning Can Reduce Adoption Costs

Adoptions plummeted during the COVID  pandemic, but the adoption rate is slowly rebounding. If you’re among those considering adopting a child, you need to know about the various tax breaks that can make the experience more affordable. Primary Tax Incentives The federal tax code includes two subsidies for taxpayers who adopt: The adoption credit, and An

Hiring Family Members Can Pay Off for Everyone

One of the advantages of owning and operating your own business is the ability to hire family members to fill open positions. This can be a significant perk in today’s tight labor market. Bringing on family members can have tax benefits for all involved, too, and offers an opportunity to start a retirement savings account for

Death is No Excuse

The federal government is an equal-opportunity tax assessor. Even the dead can’t escape taxes. The final accounting required of the deceased is not limited to an estate tax filing, but a federal income tax return must also be filed for the year in which the taxpayer passes. Please consult a professional with tax expertise if you

Qualifying for Tax Breaks for a Dependent Parent

For many families, the tables may turn, and adult children provide financial support for their parents. For example, you might have moved your in-laws from a long-term care facility into your home during the pandemic for safety and convenience. Or your widowed father might still live in his own home, but his pension might not

Estate and Tax Planning Techniques Available

Did you know there are estate and tax planning techniques available to clients that are the wealth creators in their families but whose parents or grandparents do not have significant wealth? A planning technique, commonly known as “upstream power of appointment” or “senior power of appointment” (UPOA), provides for a general power of appointment (GPOA)

2020 Year-End Tax Planning

With year-end quickly approaching, there is much to be considered in terms of 2020 tax planning. From tax law changes coming out of the stimulus package passed earlier this year to proposals ahead of the election, this year has provided a myriad of tax planning opportunities. We continue to monitor the final results of the