Taxes matter, both federal and state. And they can eat up more of your money than you might think. The Tax Foundation has released a map showing the real value of $100 in each state. Prices for the same goods are often cheaper in states like Missouri or Ohio than in states like New York or California. As a result, the
(Photo by Roberto Serra/Iguana Press/Getty Images) The Tax Cuts and Jobs Act (TCJA)’s special 20% individual income tax deduction for owners of pass-through businesses was always going to disproportionately benefit the wealthy. The Joint Committee on Taxation projected that half the benefits of the provisions would go to millionaires and only a small fraction would
2017 Tax Cuts and Jobs ActShutterstock The IRS recently released proposed reliance regulations (Proposed §1.199A) for the 2017 Tax Cuts and Jobs Act’s new 20% deduction on qualified business income (QBI) in pass-through entities. The proposed regulations confirm that traders eligible for trader tax status (TTS) are a service business (SSTB). Upper-income SSTB owners won’t
A recent headline estimated the potential market for the Opportunity Zones program, the new tax-break that allows investors to defer taxes on realized capital gains with investments into “O-Funds” with the intention of incentivizing long-term investment in low-income communities in the U.S., at an eye-popping $6 trillion. Excitement has followed as developers and fund managers
Shutterstock There’s been a massive discount building in a pocket of the market where you can get big dividends that are entirely tax-free. And I’m going to show you three “1-click” ways to tap this income investor’s wonderland today. I know that tax-free anything these days sounds impossible, but in this case, I assure you
Social Security may be one of your largest assets. What and when you collect will make a huge difference to your lifetime benefits. Today’s post whether continued income can increase benefits amounts, delaying past FRA, sequencing survivor and retirement benefits and the potential effects of other retirement systems on Social Security benefits. Larry Kotlikoff is
The news that jurors gave $289 million to a man they say got cancer from Monsanto’s Roundup weedkiller might make you think the plaintiff will get rich. Dewayne Johnson can’t count on the money, as Monsanto says it will appeal. Monsanto faces hundreds of other claims, and may fight hard. But even if Monsanto forks over the money,
pinkypills What do I do for clients? I’ve run into this question a lot lately, and I understand why it comes up. The term “financial advisor” can mean lots of different things—different approaches, different expertise and different daily routines. Plus, we’re not cheap. It’s only natural that people want to know what they’re getting for
These past two days it would have been easy to get the impression that U.S. President Donald Trump is responsible for the currency crisis in Turkey. Unfortunately, for Turkey, Trump is not the source of all their economic woes. Overwhelmingly, the real problems are insane economic policies implemented under the rule of Turkish President Tayyip Erdogan.
Shutterstock Earlier this week, the Internal Revenue Service (IRS) issued proposed regulations for Section 199A, a key element of the Tax Cuts and Jobs Act. The section 199A deduction, sometimes called the pass-through deduction, allows sole proprietors and owners of pass-through businesses a deduction of up to 20% on business-related income to bring the overall rate lower.
President Trump’s Economic ScorecardDesign: Nick DeSantis, Forbes Staff In the past few days, new economic reports have come out that don’t paint a very rosy picture for a number of economic items. While GDP hit 4.1% for the June quarter, but only 2.9% year over year, and the unemployment rate is hovering at all-time lows,
Shutterstock The regulations for Section 199A were released on Wednesday morning, so many Tax Advisors are short on sleep and almost ready to roll. These regulations are exceedingly complex and it will take months of study and discussion before the major implications are fully understood. The regulations use a host of abbreviations, from QBI (“Qualified
Shutterstock Refinancing student loans comes with many benefits: a lower interest rate, a lower monthly payment, a single combined loan and the opportunity to pay off your student loans faster. Here’s how you can increase your chances to get approved to refinance student loans. Step 1: Focus on these key metrics Student loan refinancing is
Share to facebook Share to twitter Share to linkedin Denver Mayor Michael Hancock (D) campaigned against Colorado’s marijuana legalization measure in 2012. But he now admits that in the years since voters ignored his advice and ended prohibition anyway, the city has been able to effectively regulate the cannabis industry in a way that creates jobs and generates tax revenue.
Shutterstock Tax laws are inherently complex, and the 2017 Tax Cut and Jobs Act hasn’t made finding ways to reduce tax drag easier for tax lawyers, especially those serving and catering to ultra-high-net-worth (UHNW) individuals and families. While fiduciary duties should make objectives clear for investors and alternative investment vehicles such as hedge funds and
The Tax Cuts and Jobs Act — signed into law on December 22, 2017 — gave birth to a brand new provision: Section 199A, which permits owners of sole proprietorships, S corporations, or partnerships to deduct up to 20% of the income earned by the business. While the provision has the potential to bestow a
Image by Shutterstock 529 College Savings Plans are like mutual funds, but the growth is never subject to tax as long as the Plan is used to pay college and graduate school tuition and permitted living expenses. The 2017 Tax Act added a provision which allows 529 Plans to be used to pay up to
Shutterstock When Congress tackled tax reform last year, the tax treatment of businesses was front and center. The new tax law permanently lowered the tax rate for corporations to 21% while rates typically remained higher for individual taxpayers (you can see the new individual tax rates here). That scheme would have been problematic for sole
Social Security may be one of your largest assets. What and when you collect will make a huge difference to your lifetime benefits. Today’s post addresses potential spousal benefit options, checking on benefit amounts, when spousal benefits can become available, remarriage and the availability of widow(er)’s benefits. Larry Kotlikoff is the founder and president of
There was a big win for the IRS last month in Altera Corporation & Subsidiaries v IRS as the Ninth Circuit in a two to one vote overturned a Tax Court decision. I covered the decision here. Although the dollar stakes were not that high to Intel, which had acquired Altera as the litigation was ongoing,