The 20% Qualified Business Income Deduction – Congress Denies the Deduction to Certain Successful Business Owners

In Part 1 of this 4-part series, we introduced the extraordinary power of the Qualified Business Income (QBI) deduction to slash your business owner client’s taxes by as much as 20%. We ended Part 1 with a heads-up that restrictions apply. We’ll take a close look at a key restriction in this article - Part [...]

By |2019-04-05T10:55:16-04:00April 17th, 2019|Good to Know|0 Comments

Saving Taxes for Shareholders – Buy/Sell Agreements: Stock Redemption vs Cross Purchase

Student Question of the Week Course :Insurance Planning Lesson :17 – Business Uses of Life and Disability Insurance Student Question: Under the Stock Redemption method – how is basis treated specifically to stock remaining outstanding (not treasury stock) and how does this compare to the Cross Purchase method? Is basis [...]

By |2019-04-02T05:41:53-04:00April 16th, 2019|Student Question|0 Comments

Identifying skip and non-skip persons.

Student Question of the Week Course :Estate Planning Lesson :7 – Transfer Taxation IV – Generation Skipping Transfers Student Question: Wouldn't Ellen be a non-skip person since Jane is deceased and she bumps up the ladder one step to be just one generation behind?? (Question below, in which Ellen is identified as [...]

By |2019-04-02T05:41:40-04:00April 9th, 2019|Student Question|0 Comments

Good to Know: Claiming Dependents – Waste of Time or Great Way to Save on Income Taxes?

We lost the deduction for personal and dependency exemptions starting in 2018 under the Tax Cuts and Job Act. With the loss of the deduction, many taxpayers rightly ask, “Should I even bother documenting and claiming my dependents on my tax return?” That a reasonable question and the answer is… YES for many taxpayers. Claiming [...]

By |2019-04-03T04:29:01-04:00April 3rd, 2019|Good to Know|0 Comments

Good to Know: Should you convert to a C Corporation for the 21% tax rate?

Conventional wisdom says that sole proprietorships, partnerships, Sub-S Corporations and certain LLCs (“pass-through” business structures) should strongly consider converting from their present business form into a C Corporation (C Corp). Why? The 21% C Corp income tax rate from the Tax Cuts and Jobs Act can be seductive, especially when personal income tax rates can reach as high as 37%. Like many temptations, the rush to a C Corp may be a good one to resist. Here’s why...

By |2019-03-06T13:05:32-04:00March 6th, 2019|Student Question|Comments Off on Good to Know: Should you convert to a C Corporation for the 21% tax rate?

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