ePriceFinancial

Tax Planning Issues

FLPs WITH BUSINESS PURPOSE MORE LIKELY TO PASS IRS MUSTER Wealthy families thinking of establishing a family limited partnership in order to save gift and estate taxes need to keep one key point in mind: an FLP is more likely to pass IRS muster if it can demonstrate a bona fide business purpose and operate in a business-like manner. Click here for the complete article.

ROTH CONVERSIONS BECOME MORE ATTRACTIVE FOR RETIREES

(12/01/04)-- Affluent retirees who have wanted to convert sizable traditional individual retirement accounts into Roth IRAs but weren't eligible because of income restrictions may find 2005 the year to make the conversion. Click here for the complete article.

INHERITING IRAS A TRICKY PROCESS

(08/01/04)-- As the first generation of investors in traditional individual retirement accounts begin to die, an increasing number of surviving spouses or children are inheriting those IRAs. Unfortunately, in the process many inheritors are making irreversible mistakes that can cost them thousands of dollars in extra taxes and lost potential earnings. Click here for the complete article.

START PLANNING NOW TO AVOID DREADED ALTERNATIVE TAX

(07/01/04)-- The dreaded alternative minimum tax may soon be coming to a tax return near you-perhaps your own. But don't wait until next spring, when it's too late, to find out whether you're subject to the AMT. Take steps now to minimize or avoid the impact of this tax. Click here for the complete article.

IRS ISSUES HOME SWEET HOME-SALE RULES

(01/02/03)-- The Internal Revenue Service has proposed new regulations that make it easier for people who don’t meet the standard two-year home-sale rule to save taxes on sale profits. The regulations also provide a tax break to those who operate a qualified home office. Click here for the complete article.

EARLY ROTH IRA OWNERS CAN START TAKING

(12/10/02)-- TAX-FREE EARNING WITHDRAWALS SOON Q. I opened a Roth individual retirement account when they first became available in 1998, and I’m now 61 years old. When can I start making tax-free withdrawals? Click here for the complete article.

TAX RULING MAY HELP EARLY RETIREES

(11/01/02)-- PRESERVE BATTERED RETIREMENT ACCOUNTS The Internal Revenue Service (IRS) has issued a ruling that may help early retirees preserve the assets in their retirement accounts battered by the bear market. But not all early retirees may want to take advantage of the offer. Click here for the complete article.

YEAR-END TAX STRATEGIES FOR MAKING ESTIMATED PAYMENTS

(11/01/02)-- Making accurate estimated tax payments for income not covered by employer withholding can easily be overlooked or miscalculated. But you can eliminate or reduce potential penalties by making some adjustments before the end of the year. Click here for the complete article.

IRS AGAIN SPLITS ON SPLIT-DOLLAR ARRANGEMENTS

(07/01/02)-- A year following its surprise notice instituting tougher tax rules on increasingly popular equity split-dollar life insurance arrangements, the Internal Revenue Service has issued new interim guidance that revise its 2001 notice. Stiffer taxes on these arrangements are still likely once final rules are issued, but the interim rules provide added time for users of these arrangements to huddle with their financial planners to plan ways to minimize the impact. Click here for the complete article.

DONOR-ADVISED FUNDS ALLOW PERSONAL CONTROL YET PROVIDE TAX BREAKS

(05/23/02)-- People who have made enough money so they can afford to give some of it away typically want to control who receives their charitable gifts. An increasingly popular way to do so is through a donor-advised fund under the auspice of a public charity. Click here for the complete article.

ALTERNATIVE MINIMUM TAX AMT (aka ANOTHER METHOD TO TAX)

(04/20/02)-- Will it affect you? The AMT calculation is one that every individual must work through in addition to the calculation of tax under normal rules. The final tax bill is the larger of that calculated under both sets of rules. Click here for the complete article.

COMMUNITY PROPERTY OR JOINT TENANCY? THE MARRIED PERSON'S DILEMMA

(04/20/02)-- How a married couple living in a "community property" state holds legal title to their property can be very important. Holding title "the wrong way" could result in a loss of important tax advantages to a surviving spouse. Click here for the complete article.

AMT LIKELY TO HIT MORE TAXPAYERS UNDER THE NEW TAX ACT

(09/04/01)-- While most taxpayers will see lower tax bills under the new tax act, many will find part of their savings taken back by a tax they may not be familiar with: the alternative minimum tax. But taxpayers who may find themselves vulnerable to AMT can minimize its bite with some careful planning. Click here for the complete article.

NEW TAX ACT AFFECTS PLANNING FOR SMALL-BUSINESS OWNERS

(08/01/01)-- Many small-business owners may feel left out by the new tax act, but several provisions in the act, some big, some small, do affect financial planning for owners. Click here for the complete article.

IS THE ALTERNATIVE MINIMUM TAX IN YOUR FUTURE?

(11/30/00)-- The alternative minimum tax originally was designed as a parallel tax system to the regular income tax to ensure that higher-income taxpayers who take a lot of deductions pay at least a minimum amount of tax. But in recent years, the AMT has started snaring more middle-income taxpayers. The latest Internal Revenue Service figures showed 828,000 taxpayers paid the AMT in 1998-up 25 percent from the year before. A full quarter of those taxpayers reported adjusted gross income below $100,000. Click here for the complete article.

NEW CAPITAL GAINS TAX RULES GO INTO EFFECT SOON

(11/30/00)-- Now that you've had time to become familiar with the capital gains rules passed by Congress as part of the 1997 Taxpayer Relief Act, it's time to learn some new capital gains rules that could save you money. These rules were passed as part of that 1997 Act, but many taxpayers have forgotten about them because they don't go into effect until January 1, 2001. Click here for the complete article.

STAYING AWAKE DURING THE VACATION HOME TAX NIGHTMARE

(10/04/00)-- Owning a second home may bring great joy to your family. However, it also can be a tax nightmare if you rent out the property. Click here for the complete article.