December 2017 Tax & Business Alert

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EDUCATE EMPLOYEES ON REQUIRED MINIMUM DISTRIBUTION RULES

Businesses with employees headed for retirement can provide a helpful service by educating these workers on rules regarding required minimum distributions (RMDs). If violated, these rules could trigger hefty penalties. This article explains RMD requirements for IRAs and 401(k)s. A sidebar looks at other RMD issues, such as beneficiary spouses and form of distribution.

DAPTS OFFER A HOMEGROWN APPROACH TO ASSET PROTECTION

The most effective way to protect assets from future creditors is to transfer them to children or other family members with no strings attached. But, understandably, many wealthier individuals want to retain some control over their wealth. This article looks at one potential option of doing so: creating a domestic asset protection trust.

5 COMMON MISTAKES WHEN APPLYING FOR FINANCIAL AID

Given the astronomical cost of college, even well-off parents should consider applying for financial aid. A single misstep, however, can harm a child’s eligibility. This article looks at five common mistakes.

ENSURING YOUR YEAR-END DONATIONS ARE TAX DEDUCTIBLE

Many people decide to make donations at the end of the year. When doing so, it’s important to know the rules about whether such contributions will be considered tax deductible for 2017. This brief article discusses two important concepts: delivery dates and qualified charities.

How would homeowners fare under the proposed tax law?

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The Tax Cuts and Jobs Act would make several changes. For example, it retains the mortgage interest deduction (subject to a $1 million cap) for mortgages that already exist on Nov. 2, 2017, as well as for those who entered into a binding written contract before that date. However, for newly purchased homes, the deduction would be limited to $500,000 and taxpayers would be limited to one qualified residence. The bill would also retain the property tax deduction, subject to a $10,000 maximum.

November 2017 Tax & Business Alert

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HANDLE WITH CARE: MUTUAL FUNDS AND TAXES

Many people overlook tax considerations when planning their mutual fund investments. This article offers some tax-savvy tips, including avoiding year-end investments and watching out for reinvested distributions. A sidebar explains why tax-inefficient funds should be directed to nontaxable accounts.

 

BAD DEBTS AREN’T ALWAYS BAD NEWS

No business owner goes out of his or her way to acquire a bad debt. But they’re not always bad news. This article discusses how a company may be able to write off the uncollectible amount for tax purposes.

 

PONDERING THE PURCHASE OF A LIFE INSURANCE POLICY

What, if any, role life insurance should play in one’s financial plan depends on a variety of factors. This article examines some of those factors, including whether a person has dependents and his or her net worth.

 

ARE FREQUENT FLYER MILES EVER TAXABLE?

Many people who accumulate frequent flyer miles assume that these valuable rewards aren’t taxable. This brief article explores the validity of this assumption.

Critics see flaws in Trump tax plan

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After the release of a “framework” for tax reform by the Trump administration, some critics voiced concerns about how the changes would affect the deficit. Senator Bob Corker (R-TN) said, “I’m not about to vote for any bill that increases our deficit, period.” Critics also cautioned that the proposed 20% income tax rate for pass-through businesses could be abused by wealthy individuals and certain partners, who could see substantial savings of large portions of their income unless Congress adds provisions to prevent abuse.