A charitable remainder trust (CRT) can convert assets into a stream of lifetime income, provide a current tax deduction and leave the remainder to your favorite charity. Typically, a CRT is funded with income-producing assets, such as real estate and securities. These assets may be supplemented by cash deposits. When you transfer assets to the
Joan Ellenbogen
Jul 29, 2020
A win-win proposition: A CRT can benefit you and your favorite charity
- By Joan Ellenbogen
- Estate, Uncategorized
- 0 Comments
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Jul 23, 2020
Avoid pitfalls when splitting gifts with your spouse
- By Joan Ellenbogen
- Estate
- 0 Comments
The annual gift tax exclusion allows you to transfer up to $15,000 per beneficiary gift-tax-free for 2020, without tapping your lifetime gift and estate tax exemption. And you can double the exclusion to $30,000 per beneficiary if you elect to split the gifts with your spouse. It’s important to understand the rules surrounding gift-splitting to
Jul 16, 2020
Regaining your tax-exempt status if you failed to file Form 990s
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
There are many ways for a not-for-profit organization to lose its tax-exempt status — including participating in lobbying and campaign activities, receiving excessive unrelated business income and allowing board members to financially benefit from their positions. But the most common reason nonprofits lose their status is failure to file an annual Form 990 or 990-N
Jul 9, 2020
Launching a business? How to treat start-up expenses on your tax return
- By Joan Ellenbogen
- Business
- 0 Comments
While the COVID-19 crisis has devastated many businesses, the pandemic has also created opportunities to launch new businesses. For example, some businesses are being started online to provide products and services to people staying at home. Entrepreneurs often don’t know that many start-up expenses can’t be currently deducted. Some probably must be amortized over time.
Jul 7, 2020
Good records are the key to tax deductions and trouble-free IRS audits
- By Joan Ellenbogen
- Business
- 0 Comments
If you operate a small business, or you’re starting a new one, you probably know you need to keep records of your income and expenses. In particular, you should carefully record your expenses in order to claim the full amount of the tax deductions to which you’re entitled. And you want to make sure you
Jul 1, 2020
Rioting damage at your business? You may be able to claim casualty loss deductions
- By Joan Ellenbogen
- Business
- 0 Comments
The recent riots around the country have resulted in many storefronts, office buildings and business properties being destroyed. In the case of stores or other businesses with inventory, some of these businesses lost products after looters ransacked their property. Windows were smashed, property was vandalized, and some buildings were burned to the ground. This damage
Jun 25, 2020
IRS releases 2021 amounts for Health Savings Accounts
- By Joan Ellenbogen
- Business
- 0 Comments
The IRS recently released the 2021 inflation-adjusted amounts for Health Savings Accounts (HSAs). For calendar year 2021, the annual contribution limitation for an individual with self-only coverage under a HDHP is $3,600. For an individual with family coverage, the amount is $7,200. This is up from $3,550 and $7,100, respectively, for 2020. For calendar year 2021, an
Jun 18, 2020
Student loan interest: Can you deduct it on your tax return?
- By Joan Ellenbogen
- Taxes
- 0 Comments
Many taxpayers with student loans have been hard hit by the economic impact of COVID-19. The CARES Act contains some help. It allows borrowers with federal student loans to stop making monthly payments until Sept. 30, 2020. If you do make student loan payments, you may be able to deduct the interest on your tax
Jun 16, 2020
The CARES Act liberalizes net operating losses
- By Joan Ellenbogen
- Business
- 0 Comments
The CARES Act includes favorable changes to the rules for deducting net operating losses (NOLs) to provide businesses with relief from the novel coronavirus (COVID-19) crisis. It permanently eases the taxable income limitation on deductions. For tax years beginning before 2021, the CARES Act removes a taxable income limitation on deductions for prior-year NOLs carried
Jun 10, 2020
Time to team up: Nonprofit partnerships
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
Not-for-profits struggling during the COVID-19 pandemic may want to consider partnering with a like-minded organization. Teaming up potentially enables you to pool funds, staff and supporters, temporarily or permanently. The two most common arrangements are strategic alliances and joint ventures. With either one, you’ll need to ensure that your nonprofit and your partner share similar