The Tax Adviser
TAX PRACTICE MANAGEMENT. 2024 tax software survey. To get through the rigors of tax season, CPAs depend on their tax preparation software. Here's how they rate the leading professional products. EMPLOYEE BENEFITS & PENSIONS. SECURE 2.0 developments and guidance for 2024. The 2022 act affected a wide array of retirement fund and pension plan ...
Revocable trusts and the grantor’s death: Planning and pitfalls
Mar 25, 2021 · Planning with revocable trusts has become increasingly popular in recent years. In many instances, the motives for using a revocable trust are nontax and include avoiding probate, asset protection planning, and managing potential issues relating to the grantor's privacy and incapacity. From a tax perspective, the interplay of the grantor and nongrantor trust rules, coupled with the death of ...
SECURE 2.0 developments and guidance for 2024 - The Tax Adviser
Jan 1, 2024 · The SECURE 2.0 Act 1 is an extensive piece of retirement plan legislation passed on Dec. 29, 2022. Its stated goals are to expand and increase retirement savings and to simplify and clarify retirement plan rules. Its passage affects virtually all forms of retirement plans and increases conformity across different types of plans.
Partnership distributions: Rules and exceptions - The Tax Adviser
Aug 1, 2024 · The general formula is: Adjusted basis = [contributions (including increases to the partner’s share of liabilities) + taxable income + tax-exempt income] – [distributions (including decreases to the partner’s share of partnership liabilities) + taxable losses + nondeductible expenses]. Second, in determining whether a partner recognizes ...
Tax consequences of employer gifts to employees - The Tax Adviser
Apr 1, 2024 · Prop. Regs. Sec. 1.102-1 (f) (1) lists several of the typical exclusions for items given to employees. These are well known and frequently used by employers, including Sec. 74 employee achievement awards, Sec. 132 de minimis fringe benefits, and Sec. 117 qualified scholarships. Together, Secs. 74 (c) and 274 (j) govern tax-free employee ...
Guide to expensing HVAC costs - The Tax Adviser
Apr 15, 2021 · Insight: The law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, makes HVAC costs eligible for expensing under Sec. 179. To be eligible, the HVAC costs must be for nonresidential real property that is placed in service after the date the property was first placed in service. This guide provides tax preparers an outline of questions to ...
Goodwill as Part of a Corporate Asset Sale - The Tax Adviser
When a corporation is sold in an asset sale, a separate sale of a shareholder's personal goodwill associated with the corporation can result in the gain from the sale of the goodwill being taxed to the shareholder at long-term capital gains rates. Personal goodwill can be present when the owner's reputation, expertise, skill, knowledge, and ...
Dividing up assets when a marriage ends: Tax implications
Dec 1, 2022 · The principal residence is a typical asset that is discussed and awarded during a divorce. Sec. 121 allows joint filers to exclude up to $500,000 of gain on the sale of a residence, and individual filers can exclude up to $250,000 of gain. This can provide a tax planning opportunity for some divorcing couples.
Tax issues that arise when a shareholder or partner dies
Mar 1, 2022 · EXECUTIVE SUMMARY : When an owner of a passthrough entity dies, significant tax implications can arise both on an entity and individual level. For a partnership, the death of a partner can lead to tax issues involving the close of a partnership's tax year with respect to the deceased partner, a possible change in the partnership's year end, post-death allocation of income, Sec. 754 elections ...
Understanding the Tax Consequences of Liquidation to an S …
Sec. 1.465-66 (a) specifically states that this rule applies to the liquidation of a partner’s interest and the complete redemption of an S shareholder’s interest.) Losses limited by the passive activity rules are also suspended at the shareholder level and carry forward indefinitely to offset future passive income.