Agribusiness Farm Tax Seminar
|
|
- Eugenia Mathews
- 5 years ago
- Views:
Transcription
1 Agribusiness Farm Tax Seminar Specialty Estate Tax Seminar for Farm Families Nicholas Houle, CPA, MBT Christopher Hesse, CPA December 17, 2013 CLAconnect.com
2 Disclaimers To ensure compliance imposed by IRS Circular 230, any U. S. federal tax advice contained in this presentation is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed by governmental tax authorities. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, or tax advice or opinion provided by CliftonLarsonAllen LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader s specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her CliftonLarsonAllen LLP or other tax professional prior to taking any action based upon this information. CliftonLarsonAllen LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.
3 Housekeeping If you are experiencing technical difficulties, please dial: Q&A session will be held at the end of the presentation. Your questions can be submitted via the Questions Function at any time during the presentation. The PowerPoint presentation, as well as the webinar recording, will be sent to you within the next 10 business days. Please complete our online survey.
4 About CliftonLarsonAllen A professional services firm with three distinct business lines Accounting and Consulting Outsourcing Wealth Advisory 3,600 employees Offices coast to coast Serve the entire agribusiness industry more than 6,000 producers, processors, farm input providers and cooperatives
5 Speaker Introductions Chris Hesse, Principal, CliftonLarsonAllen Frequent national speaker on taxation, agricultural, and estate tax topics Past chair of the AICPA National Agriculture Conference committee. Nick Houle, Principal, CliftonLarsonAllen Specializes in financial planning, estate planning and succession planning Multiple year recipient of the Fivestar Wealth Manager Award for overall client satisfaction.
6 Estate and Gift CLAconnect.com 6
7 Estate Tax Seminar - Agenda The post-cliff Estate Tax System Structures for farm transitions Disposition of operating assets Part gift/part sale on direct land transfers Use of entity for land: No heirs Use of entity for land: Farm successor Life insurance trusts 7
8 2013 Gift and Estate Tax Cliff Gift & estate exemption $5.12M $5.25M $5.34M Top rate on excess 35% 40% 40% 8
9 Gift & Estate Tax System Lifetime Gifts $14,000 annual exclusion per donee (was $13K) Husband-wife gift splitting permitted Gifts exceeding annual exclusion: Use $5M unified gift-estate exemption Carryover income tax basis on lifetime gifts 9
10 Gift & Estate Tax System Estate Tax $5M unified exemption + Plus deceased spouse s unused exemption (post-2010 portability ) - Prior gifts in excess of annual exclusion Increase of $1M for Sec. 2032A farm special use Step-up in income tax basis to FMV for heirs State Estate Tax exposure considerations 18 States with estate tax currently 2 States with a gift tax 10
11 Example: Portability H dies in 2013 H has taxable transfers at death of $3.0 million Election is made in his filed estate return to permit W to use H s unused $2.25 million exemption W at death has $7.50 million exemption [$2.25 million from H and $5.25 million (+) of her own] 11
12 Gift & Estate Tax System Estate Tax Special Use Valuation (Sec. 2032A) 50% of estate consists of farming assets Actively farmed prior to death or retirement An heir continues to actively farm 10 yrs. post-death Value land at lower 5-year. ave. capitalized rent value Valuation reduction limited to approx. $1M 12
13 Lifetime Gifts vs. Estate Transfers Carryover tax basis vs. step-up to FMV tax basis Is fresh depreciation important? Is reduced gain on eventual sale important? Timing of the transfer Lower value today vs. at estate? Income and cash flow reduction to donor if gift 13
14 Specific Farm Estate Planning Objectives - Include Maximize use of tax exemptions and exclusions available Minimize complexity Transfer substantial values to the next generation quickly Minimize IRS audit risk/challenge Avoid probate privacy Philanthropy? Maintain continued financial security for senior family members, their spouses and family Family harmony 14
15 Farm Transition Planning Disposing of operating assets (grain, livestock, M&E) Without farming successor With a farming successor Transitioning the land to the next generation Gift-sale strategies Use of an entity 15
16 Disposition of Operating Assets Ordinary Installment SE or Cap. Gain? Method? Tax? Grain Ordinary Yes Yes Livestock: Resale Ordinary Yes Yes Livestock: Breedingraised Cap. Gain Yes No Depr. machinery/ breeding stock Ordinary No No Bins, barns, tiling, irrig. Ordinary No No Land Cap. Gain Yes No 16
17 Disposition of Raised Grain: No Successor Spread sales over several tax years Multiple yrs. of lower tier Soc. Sec. tax (15.3% on first $113,700) Miss high grain prices by holding crop? Sell early at high price and take installment payments Credit risk? Same Soc. Sec. tax cost 17
18 Charitable Remainder Trusts Donor Asset Term Income Char. Rmdr. Trust (No Tax On Asset Sale) Rmdr. After Term Charity 18
19 Charitable Remainder Trusts Advantages Defer income up to a 20-year term Lower federal income tax rates No SE Soc. Sec. Tax Commodity can be sold by Trust with no tax Less federal tax; trades off with residual to charity 10% minimum net present value to charity 19
20 CRT Examples 10 yr. term, annual payout $500,000 funding Annual yr. end IRS Interest Rate 2.0% 4.0% Payout amount $50,095 $55,400 Charitable remainder 10.01% 10.13% [Current IRS rate: 2.0%!] 20
21 C Corp. with Land Inside: No Successor Liquidate grain/livestock inventory and M&E as a C corp. Use C corp. lower tax rates Possible offsetting deductions for past underpaid services to employee-shareholders? Convert to S corporate status after disposition of all operating assets S corp. holds land only; becomes landlord entity Net rent income flows through to corp. owners But S corp. must be active (crop share rents) or pay out its prior C corp. earnings as a dividend 21
22 Transitioning Farm Operations to Successor Sell machinery for installment note? Immediate ordinary income depreciation recapture Lease alternative (but danger that IRS recharacterizes as a disguised sale) Disposition of grain? Ordinary income and SE Social Security tax Alternative: Use of an entity 22
23 Case Study 1: Active Operations to Successor Facts: Dad, age 65, operates as Schedule F proprietor Owns grain, machinery, and land Objectives: Retire in several years, liquidate grain, and sell machinery to son Est. grain value: $800,000; machinery $500,000 Jr., age 34, farms with dad, but also files as proprietor Owns his share of grain, some machinery (total value $200K) Buying 160 acres on contract from grandmother 23
24 Case Study 1: Active Operations to Successor Plan A: Liquidate grain/lease & sell machinery to Jr. Federal tax Income tax Soc. Sec. tax Asset (35% blended) (9% blended) Total $800K grain $280K $72K $352K $500K machinery $175K $ - $175K $1.3M $455K $72K $527K 41% 24
25 Case Study 1: Active Operations to Successor Plan B: Use an Entity to Transition Operating Assets Sr. Jr. Grain & machinery $1.3M 87% stock 13% stock Grain & machinery $200K S Corp. 25
26 Case Study 1: Active Operations to Successor Sr. NOTE STOCK Jr. 87% 13% S Corp. $1.5M grain & machinery 26
27 Case Study 1: Active Operations to Successor Strategies with corporate entity: Capital gain & no SE tax to Sr. on stock sale Cuts effective tax rate from 40% to 20% Spread gain over term of note (e.g., 10 yrs.) Sell stock in minority increments with discounts Consider reorganizing into voting & non-voting shares Sr. can dispose of most stock, but retain control if desired 27
28 Case Study 1: Active Operations to Successor Sr. $ Note Pmt. 10% 90% S Corp. Jr. $ 90% of cash distrib. 28
29 Case Study 1: Active Operations to Successor Plan A Sale Plan B (Entity) Value of grain/machinery $1,300K $1,300K Less stock discount (25%) (300K) Less tax cost: 40% (520K) 20% (200K) Net to Sr. after taxes $780K $800K 29
30 Cast Study 1: Summary Entity sells Sr. s grain, but offsets income with ongoing farm input expenses & prepaids Jr. does not get fresh depreciation on machinery Bought nondeductible stock, but at a discount Jr. gets favorable long-term financing from Sr. Jr. has cash method farm expenses to continue tax deferral S corp. distinguishes salaries vs. rent vs. owner distributions 30
31 Illustration: S Corporation (Operating Yrs.) $ $ I $ W-2 (S.S.) Rent Owner Distributions S Corp. - Grain - Machinery 31
32 Taxation of S Corp. Income (2013) Salary - Income tax plus: First $113,700 at 15.3% Soc. Sec. tax; excess 2.9% New: 0.9% Medicare tax >$200K single/$250k joint Rent - Income tax plus: New: 3.8% Net Inv. Income tax > $200K single/$250k jt. Adjusted Gross Income If S corp a passive activity Shareholder Distributions of S Corp. Income Income tax only 32
33 Transitioning the Land Gift Sale Outright Seller-financed (installment sale) Combination gift-sale [Same choices, whether transferring acres or entity shares] 33
34 Part Gift Part Sale Strategy Example Low basis (i.e., tax cost) in land Objective: Sell to a family member at a price that can be paid in an installment sale using annual cash rents Bargain element (full FMV less sale price) = gift 34
35 Part Gift Part Sale Strategy Example Per acre Full appraised FMV $9,500 Sale price (to family) $5,000 Tax basis (cost) $1,000 $4,500 gift $4,000 cap. gain 35
36 Part Gift Part Sale Strategy Planning tips Importance of a qualified appraisal to prevent IRS attack on amount of gift Opportunity: Lock in low interest rate on installment note to family member Based on IRS AFR% for month of sale December 2013 rate: Over 9 yr. term: 3.32% December 2013 rate: Over 3 yr. & 9yr.: 1.65% 36
37 Case Study 2: No Farming Successor Facts: Dad and Mom ages 74 and 72; 1,260 acres of land Net worth about $13.5M ($12M land + $1.5M investments) 3 adult children, all married, none farming Land has been cash rented to unrelated tenant Objectives: Hold land together for children/ grandchildren Concerned about spendthrift lifestyle of Child 3 and husband 37
38 Family Limited Partnership (FLP) Illustration H W FLP - Land 38
39 Family Limited Partnership (FLP) Illustration Gifts H W C-1 C-2 C-3 FLP - Land 39
40 FLP Advantages Facilitates gifts Annual exclusion of $14,000 Discounts for minority and lack of marketability Most units non-voting (to allow management control to selected partners) Centralized management Terms for buy-out of a member Discount if early exit (e.g. 80%-90% of appraised value) Specify pmt. terms (long term /low interest rate to preserve entity cash flow) 40
41 FLP Advantages Include binding mediation/arbitration language if disputes arise Design of FLP document forces family communication pre-death Require each child to invest cash at formation to force legal and emotional buy-in to the operating agreement Require super-majority to liquidate the partnership/distribute land 41
42 FLP Disadvantages Fees Legal costs of document drafting/planning Appraisal fee for land valuation Appraisal fee for discount valuation IRS valuation disputes Annual partnership tax return Separate checking account Proper allocations of any cash distributions each year 42
43 Case Study 2: Family Ltd. Partnership H W C-1 C-2 C-3 70% 10% 10% 10% FLP (Land) $ Rent Cash distributions out of FLP allocated
44 Case Study 3: Farming Successor Facts: Same as Case Study 2, except Child 1 (Jr.) is a farmer who leases land from Dad and Mom Active farm assets (inventory & machinery) owned by Jr.; Dad and Mom are retired landlords Objectives: Hold land together and assure Jr. has access to lease and buy land 44
45 Case Study 3: Family Ltd. Partnership H W Jr. C-2 C-3 Jr. 97% 1% 1% 1% FLP (Land) $ Rent Farming Entity 45
46 Case Study 3: Family Ltd. Partnership Additional FLP document issues if tenant-successor: Define Jr. as having first right to lease and define terms Example: 95% of county extension lease rates Define right of Jr. to purchase land parcels from partnership (e.g., appraisal mechanism; seller-financed terms) Consider specific designation of voting units Example: 3 voting units: Dad, Mom and Jr. At second parent s death, 1 unit to Jr. & 1 to non-farm child Jr. has control, but one child to monitor compliance with FLP document 46
47 Family Ltd. Partnership Avoiding family conflict: Thorough communication at formation about Dad & Mom s objectives Emotional and financial buy-in by each child Consider use of consultant to sort out conflicting objectives of children/misconceptions/hidden heartburn Private interviews; feedback to Dad & Mom 47
48 Life Insurance and Estate Planning Proper amount of insurance (risk protection) Proper ownership of policy to avoid estate inclusion Who pays premiums? Keeping insurance out of estate 48
49 Life Insurance: Estate Tax on Death Benefit Total Estate Assume $ 10.0 million Life Insurance Husband has $2.0 million death benefit with wife as beneficiary Assume husband dies and wife collects death benefit Total Estate now $ 12.0 million $2.0 million exposed to Federal Estate Tax Estate tax cost estimated $700,000 Net death benefit after estate tax erosion is $1.3 million 49
50 Irrevocable Life Insurance Trust (ILIT) Insured A $20,000/year Pays annual premiums by gift of cash to trust Premiums paid by Trust to Insurance Co. Insurance Trust Insurance Company Trustee buys and owns Policy A 50
51 Insurance Trust At Death Insurance Trust Pays death benefit to Trust Insurance Company $1,000,000 Trustee Pays out benefit to beneficiaries Lends money to estate for expenses Buys assets from estate Pays income to surviving spouse 51
52 Insurance Issues to Consider Transfer of existing policies to insurance trust Gift value Three year rule Payment of premiums Annual gift exclusion GST exemption allocation 52
53 2013 Effective Tax Increases Watch for in planning CLAconnect.com 53
54 2012 ATRA: Phase-out of Itemized Reinstated Reduces itemized by 3% of AGI in excess of threshold: $300,000 MFJ $275,000 H of H $250,000 Single $150,000 MFS Effective rate increase is 1% 1.188% for those in the 39.6% bracket;.99% for those in 33% bracket
55 2012 ATRA: Phase-out of Exemptions Reinstated Phase-out of personal exemptions: Same AGI level as itemized deduction Reduces personal exemption by 2% for each $2,500 (or portion thereof) by which AGI exceeds the threshold Range is fixed at $125,000 (i.e., $2,500 divided by.02) Effective increase in tax rate varies based upon number of personal exemptions 4.37% for 4 exemptions at 35% rate (about 1% per person)
56 3.8% Net Investment Income Tax (NIIT) 3.8% surtax on net investment income (NII) of individuals effective in 2013, computed as the lesser of: Net investment income, or Excess of modified AGI over $200,000 single or $250,000 joint [Sec. 1411] 56
57 Net Investment Income Interest, dividends, annuities, royalties, rents Passive business income and trading Net gains from property (except active business) [All less allocable deductions] 57
58 3.8% Tax on NII Example (Joint filer) W-2 $280,000 NII 20,000 AGI $300,000 Threshold (250,000) 3.8% Tax NII $20,000 Excess AGI 50,000 Smaller $20,000 x 3.8% $
59 Exceptions to NII Material participation business income and gains, including gains from sale of S corporation or partnership Sale of C corporation stock is subject Retirement plan distributions SE income subject to SE tax Tax-exempt income and nontaxable gains (e.g., Sec. 121 residential gain exclusion) 59
60 Rental Income Income from rents is generally subject to NIIT Landlords leasing to third parties Exceptions Net rental income from materially participating business (self-rental) Rental activity grouped with materially participating business activity 60
61 Thresholds Earned Income Single Joint 0.9% Medicare tax $200,000 $250,000 AGI 3.8% NII tax $200,000 $250,000 Itemized & exemption phase-outs $250,000 $300,000 Taxable Income 39.6% income tax rate $400,000 $450,000 61
62 Sample Marginal Rates Assumptions Married taxpayers filing jointly with two children (four personal exemptions) Itemized deductions: $10,000 charitable contributions $5,000 state income taxes $20,000 mortgage interest $5,000 miscellaneous subject to 2% AGI floor Beginning with $20,000 ordinary investment income and $80,000 wages, add either wages or long-term capital gain in $10,000 increments 62
63 Sample Marginal Rates: Wage Income 63
64 Sample Marginal Rates: Capital Gains 64
65 Interest-Charged Domestic International Sales Corporation IC-DISC CLAconnect.com 65
66 IC-DISC Background Separate corporation structured with the intent of providing export subsidies through tax savings Elective status Payment of a commission to the DISC entity on goods traced into foreign commerce Goods manufactured, produced, grown or extracted in U.S. No further use, assembly or other processing within U.S. Proof of eventual export required 66
67 IC-DISC Strategy DISC not subject to income tax Rate strategy: DISC commission deductible as business expense, but dividend from DISC at 0/15%/23.8% qualified dividend rate Income of the DISC is distributed to owners as a dividend in the current or next subsequent year Avoids tax on IC-DISC deferred income if distribution is timely made 67
68 Structure: Pass-thru with a DISC subsidiary A B 2013: < 39.6% > S Corp./LLC (Exporter) Dividend 23.8% Commission Dividend DISC 68
69 Structure: C Corp. and Brother-Sister DISC A B A B Dividend C Corp. (Exporter) Commission DISC < - > -0- Tax 2013: < 35.0% > 23.8% 69
70 Structure: Pass-thru w/ other DISC Owners A B A Jr. B Dividend, 23.8% Exec S Corp./LLC (Exporter) Commission DISC < - > -0- Tax 70
71 IC-DISC Strategy Sale of goods for delivery outside of U.S. Commission is greater of 4% of export gross receipts or 50% of export taxable income No transfer pricing study No issues with regard to related parties, business purpose, arms length Transaction-by-transaction computation to provide greater benefit Or use total of export transactions 71
72 IC-DISC Benefits Estate planning benefits Transfer value to lower generation No services need be rendered by DISC shareholders Reduces payroll taxes If related supplier is a C corporation Commission paid to DISC is not compensation Can avoid unreasonable compensation issues Provides additional benefit to key employees if they are shareholders of DISC Reduces effect of the double tax regime 72
73 Questions?
74 Thank you Chris Hesse Nicholas Houle CLAconnect.com twitter.com/ CLAconnect facebook.com/ cliftonlarsonallen linkedin.com/company/ cliftonlarsonallen 74
Specialty Estate Tax Seminar for Farm Families Paul Neiffer, CPA CliftonLarsonAllen, LLP
2013 CliftonLarsonAllen LLP 2013 CliftonLarsonAllen LLP CLAconnect.com Specialty Estate Tax Seminar for Farm Families Paul Neiffer, CPA CliftonLarsonAllen, LLP Speaker Introduction Paul Neiffer, Principal,
More informationDTN University Pass It On! Farm Family Estate and Succession Planning
DTN University Pass It On! Farm Family Estate and Succession Planning Marcia Zarley Taylor, DTN Executive Editor Andy Biebl, CPA, Tax Partner, CliftonLarsonAllen LLC Nick Houle, CPA, Tax Partner, CliftonLarsonAllen
More informationEstate Tax Overview Disinherit the IRS with planning and Philanthropy
52 N. Broadway Peru, IN 46970 P: (765)470-7090 F: (765)470-7091 www.dobbslegal.com Estate Tax Overview Disinherit the IRS with planning and Philanthropy Polly J. Dobbs, Esq. LET S TALK TAXES Upon death,
More informationHOW TO DEAL WITH INCOME AND ESTATE TAX TIMEBOMBS
HOW TO DEAL WITH INCOME AND ESTATE TAX TIMEBOMBS Nicholas J. Houle CPA/PFS CFP 2010 Ag Summit Principal December, 2010 LarsonAllen Financial LLC Chicago, IL Minneapolis, MN 612-376-4760 nhoule@larsonallen.com
More informationFarm Tax Planning. Paul Neiffer, Principal Rod Mauszycki, Principal WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING
Farm Tax Planning Paul Neiffer, Principal Rod Mauszycki, Principal Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. Disclaimers
More informationTop Producer Seminar
Top Producer Seminar Are You Ready for A Wild Tax Ride? Paul Neiffer, CPA CliftonLarsonAllen, LLP January 30, 2014 CLAconnect.com Are You ready for a Wild Tax Ride? Topics The Deceptively High 2013 Tax
More informationEntity Choice in the Construction Industry: C Corp versus S Corp
WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor Entity Choice in the
More informationTop Producer Seminar A New Tax Bill: What You Need To Know Now. Paul Neiffer, CPA January 25, 2018 Chicago, Illinois
Top Producer Seminar A New Tax Bill: What You Need To Know Now Paul Neiffer, CPA January 25, 2018 Chicago, Illinois Speaker Introduction Paul Neiffer, Principal, CliftonLarsonAllen Frequent national speaker
More informationThrough the Crystal Ball Farm Business Structure After Tax Reform. Paul Neiffer, CPA January 26, 2017 Chicago, Illinois
Through the Crystal Ball Farm Business Structure After Tax Reform Paul Neiffer, CPA January 26, 2017 Chicago, Illinois Speaker Introduction Paul Neiffer, Principal, CliftonLarsonAllen Frequent national
More informationUpdated 199A and Qualified Business Income (QBI) Insight for the Construction Industry September 20, 2018
Updated 199A and Qualified Business Income (QBI) Insight for the Construction Industry September 20, 2018 WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING Investment advisory services are offered
More informationWhat Will Be Top Rate
The Process for Tax Reform in 2015 Tax Tips for 2015 Paul Neiffer, CPA CliftonLarsonAllen LLP 1. Democrat President 2. Republican House and Senate 3. Will it work? Logo or Text Goes Here What is Top Business
More information2013 TAX AND FINANCIAL PLANNING TABLES. An overview of important changes, rates, rules and deadlines to assist your 2013 tax planning.
2013 TAX AND FINANCIAL PLANNING TABLES An overview of important changes, rates, rules and deadlines to assist your 2013 tax planning. WHAT YOU WILL SEE IN THIS BROCHURE 2013 Income Tax Changes Tax Rates
More informationFamily Farm Succession & Estate Planning Presenter: Position: Date:
Family Farm Succession & Estate Planning Presenter: Position: Date: The Purdue Farm Succession Team is committed to cultivating strong farm families through the succession planning process by providing
More informationIndividual year-end planning and tax law updates
Individual yearend planning and tax law updates October 29, 2013 Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International. 1 Presenters
More informationTax-Exempt Organizations: How to Comply with 1099 Reporting Requirements
Tax-Exempt Organizations: How to Comply with 1099 Reporting Requirements CLAconnect.com Disclaimers To ensure compliance imposed by IRS Circular 230, any U. S. federal tax advice contained in this presentation
More informationFamily Wealth Services 2013 year-end tax planning considerations for high-net-worth individuals and families
Family Wealth Services 2013 year-end tax planning considerations for high-net-worth individuals and families Dec. 3, 2013 Today s presenters Randy Abeles Family Wealth Services National Practice and Great
More informatione-pocket TAX TABLES 2014 and 2015 Quick Links:
e-pocket TAX TABLES 2014 and 2015 Quick Links: 2014 Income and Payroll Tax Rates 2015 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum Tax Kiddie Tax Income Taxation of Social Security
More informationTax Reform Implications of the Tax Cuts and Jobs Act
Tax Reform Implications of the Tax Cuts and Jobs Act Tina Henton, CPA, Principal Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.
More informationDepreciation and Expensing Opportunities Under Tax Reform
Depreciation and Expensing Opportunities Under Tax Reform CliftonLarsonAllen (CLA) Disclaimers The information contained herein is general in nature and is not intended, and should not be construed, as
More informatione-pocket TAX TABLES 2017 and 2018 Quick Links: 2017 Income and Payroll Tax Rates 2018 Income and Payroll Tax Rates Corporate Tax Rates
e-pocket TAX TABLES 2017 and 2018 Quick Links: 2017 Income and Payroll Tax Rates 2018 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum Tax Kiddie Tax Income Taxation of Social Security
More informationTax Reform Implications for Higher Education
Tax Reform Implications for Higher Education Karen A. Gries, CPA, Principal Chastity Wilson, JD, LLM, CPA, Principal Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors,
More informationEstate Planning. Farm Credit East, ACA Stephen Makarevich
Estate Planning Farm Credit East, ACA Stephen Makarevich Farm Business Consultant 9 County Road 618 Lebanon, NJ 08833 1.800.787.3276 stephen.makarevich@farmcrediteast.com 1 What is Estate Planning? 2 Estate
More informationAdvanced IRA Planning
Advanced IRA Planning Presented by: Robert S. Keebler, CPA, MST, AEP 420 South Washington Street Green Bay, WI 54301 1 Agenda Tax consequences of large IRAs Roth conversions Life insurance Stretch IRA
More information2017 INCOME AND PAYROLL TAX RATES
2017-2018 Tax Tables A quick reference for income, estate and gift tax information QUICK LINKS: 2017 Income and Payroll Tax Rates 2018 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum
More informationPRACTICAL TIPS FOR CHARITABLE PLANNING
PRACTICAL TIPS FOR CHARITABLE PLANNING CLINT T. SWANSON SWANSON LAW FIRM, PLLC 200 REUNION CENTER NINE EAST FOURTH STREET TULSA, OKLAHOMA 74103 I. CHARITABLE PLANNING A. Importance of Charitable Planning
More informationAdditional Information
Charles Brown 2015 Farm Income Tax Webinar Field Specialist - Farm Management crbrown@iastate.edu 641-673-5841 515-240-9214 Additional Information Tax Summary Social Security Wage Base Entity Comparison
More information2013 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS
INTRODUCTION 2013 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS As the end of 2013 approaches, it s time to consider planning moves that could reduce your 2013 taxes. Year-end planning is particularly important
More informationEstate Planning Strategies for the Business Owner
National Life Group is a trade name of of National Life Insurance Company, Montpelier, VT and its affiliates. TC74345(0613)1 Estate Planning Strategies for the Business Owner Presented by: Connie Dello
More informationTax Planning Considerations for 2015
Tax Planning Considerations for 2015 Most strategies that could have an impact on your taxes need to be made by December 31 if you want them reflected on your 2015 tax return. Executive summary As the
More informationInstallment Sales. Contents. For use in preparing 2012 Returns. Publication 537 Cat. No V. Future Developments. Reminder.
Department of the Treasury Internal Revenue Service Publication 537 Cat. No. 15067V Installment Sales For use in preparing 2012 Returns Contents Future Developments... 1 Reminder... 1 Introduction... 1
More informationYear End Tax Planning for Individuals
Year End Tax Planning for Individuals December 2015 To Our Clients and Friends: Every individual can develop a year-end tax planning strategy that reflects his or her situation. Our office can help you
More informationTax Reform Impact on Depreciation and Expensing
Tax Reform Impact on Depreciation and Expensing CliftonLarsonAllen (CLA) Disclaimers The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting,
More informationTop 10 Income Tax Planning Ideas for 2013
Top 10 Income Tax Planning Ideas for 2013 Presented by: Robert S. Keebler, CPA, MST, AEP(Distinguished) Ph: (920) 593-1701 E-mail: robert.keebler@keeblerandassociates.com Ideas 1. Bracket Management 2.
More informationTHE MAGIC OF CHARITABLE GIVING Win-Win Strategies That Benefit Both the Charity and the Donor (ILLUSTRATIONS BASED ON RATES AND TAXES FOR APRIL 2014)
THE MAGIC OF CHARITABLE GIVING Win-Win Strategies That Benefit Both the Charity and the Donor (ILLUSTRATIONS BASED ON RATES AND TAXES FOR APRIL 2014) Presented to: CENTENNIAL ESTATE PLANNING COUNCIL November
More information2018 Year-End Tax Planning for Individuals
2018 Year-End Tax Planning for Individuals There is still time to reduce your 2018 tax bill and plan ahead for 2019 if you act soon. This letter highlights several potential tax-saving opportunities for
More informationYear-End Tax Planning Letter
2013 Year-End Tax Planning Letter 54 North Country Road Miller Place, NY 11764 (877) 474-3747 or (631) 474-9400 www.ceschinipllc.com Introduction Tax planning is inherently complex, with the most powerful
More informationTax Planning. in a Changing World. Eric Hormel CPA, Shareholder November 7, 2012
Tax Planning in a Changing World Eric Hormel CPA, Shareholder November 7, 2012 The Fiscal Cliff 2013 Tax Rate Increases Without legislative action, tax rates will go up across the board for most tax payers:
More information2016 Year-End Tax Planning Letter
9NOV2016 2016 Year-End Tax Planning Letter Dear Vista Wealth Clients and Friends, As 2016 draws to a close, you should give consideration to year-end tax planning strategies. This letter highlights some
More informationWhat is a disclaimer? A disclaimer is an irrevocable statement that the beneficiary/recipient of an asset does not wish to receive the asset.
What is a disclaimer? A disclaimer is an irrevocable statement that the beneficiary/recipient of an asset does not wish to receive the asset. The disclaimed asset passes as if the disclaimant had predeceased
More informationInvestment and Estate Planning Opportunities for High Net Worth Individuals in 2013
Investment and Estate Planning Opportunities for High Net Worth Individuals in 2013 Presented By: CPA, MST, AEP Keebler & Associates, May 2, 2013 Phone: (920) 593-1701 E-mail: robert.keebler@keeblerandassociates.com
More informatione-pocket TAX TABLES 2016 and 2017 Quick Links: 2016 Income and Payroll Tax Rates 2017 Income and Payroll Tax Rates
e-pocket TAX TABLES 2016 and 2017 Quick Links: 2016 Income and Payroll Tax Rates 2017 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum Tax Kiddie Tax Income Taxation of Social Security
More informationComprehensive Charitable Planning
CLIENT GUIDE Advanced Markets Comprehensive Charitable Planning John Hancock Life Insurance Company (U.S.A.) (John Hancock) John Hancock Life Insurance Company of New York (John Hancock) LIFE-5175 1/17
More informationUsing Your Assets to Promote your Values. Lawrence M. Lehmann, JD, AEP, CAP Lehmann Norman & Marcus LC
Using Your Assets to Promote your Values, JD, AEP, CAP Lehmann Norman & Marcus LC Charitable Motivation. The primary reason for charitable giving comes from the human heart. Unless the spark of philanthropy
More informationWhat s Hot In Charitable Planning? Janet Bandera, J.D., rated AV Preeminent
What s Hot In Charitable Planning? Janet Bandera, J.D., rated AV Preeminent BANDERA LAW FIRM, PA Illinois Florida Missouri 941-345-4073 or jbandera@banderalawfirm.com Copyright by Bandera Law Firm, P.A.
More informationTuesday, June 20, 2017 Probate Track Rooms: Income Tax Considerations In Estate Planning 10:30 a.m. 11:00 a.m. Presented by Jessica Doro 2007
Tuesday, June 20, 2017 Probate Track Rooms: 318-320 Income Tax Considerations In Estate Planning 10:30 a.m. 11:00 a.m. Presented by Jessica Doro 2007 First Avenue SE PO Box 2804 Cedar Rapids, Iowa 52406
More informatione-pocket TAX TABLES Quick Links: 2017 Income and Payroll Tax Rates 2018 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum Tax
e-pocket TAX TABLES Quick Links: 2017 Income and Payroll Tax Rates 2018 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum Tax Kiddie Tax Income Taxation of Social Security Benefits Personal
More informationBusiness Interests: Planning Considerations
Business Interests: Planning Considerations Business owners have unusual opportunities when it comes to making gifts to The First Church of Christ, Scientist. They have the flexibility of giving from their
More informationYear-End Tax Planning Letter
Year-End Tax Planning Letter 2014 The country s taxpayers are facing more uncertainty than usual as they approach the 2014 tax season. They may feel trapped in limbo while Congress is preoccupied with
More informationWho Blinked? The American Taxpayer Relief Act of Winter 2013 A 45,000 foot view of Recent Tax Law Changes affecting Agriculture
Who Blinked? The American Taxpayer Relief Act of 2012 Winter 2013 A 45,000 foot view of Recent Tax Law Changes affecting Agriculture Federal Income Tax Changes Affecting Agriculture Individual Income Tax
More informationFIDUCIARY INCOME TAXES
FIDUCIARY INCOME TAXES 12 Miscellaneous Itemized Deductions.............. 362 Qualified Revocable Trust.... 365 Case Study................. 367 Appendix: Treasury Regulation 1.67-4................ 389
More informationCorporate Taxes. Standard Deduction: Estate & Trust Tax Rates
WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor How Tax Reform Affects
More informationCharitable Remainder Annuity Trust Presentation Input Screen
Charitable Remainder Annuity Trust Presentation Input Screen Annuity Trust Questions Gift Asset Questions Case Name ----- NEW CASE ----- Gift Asset Type Cash Name for Reports Betty Anthropist Value of
More informationWEALTH STRATEGY REPORT
WEALTH STRATEGY REPORT The 3.8% Surtax on Investment Income - Trusts INTRODUCTION Beginning in 2013, net investment income (NII, as defined in the statute) is subject to an additional 3.8% surtax to the
More informationESTATE EVALUATION. John and Jane Doe
ESTATE EVALUATION John and Jane Doe Adam Advisor Investment Advisors 265 Anystreet Suite 123 AnyCity, AnyState, AnyZip (555) 555-5555 adam@investmentadvisors.inv Important Notes Estate Evaluation is a
More informationYear-End Tax Planning Summary December 2015
Year-End Tax Planning Summary December 2015 Overview Thanks to the continued political gridlock in Washington, 2015 did not see comprehensive tax reform. However, on December 18th, Congress passed the
More informationLiving Trusts to Avoid Probate. POAs. Asset Protection. HIPAAs. Health Care Directives. Divorce & Asset. Family Limited Partnerships
Asset Protection Planning Strategies Grantor Retained Annuity Section 1035 Rescues Prenuptial Planning Gift for Children BERT! The Wonder Trust Wyoming Close LLCs Sales to IDOTs Gift for Grandchildren
More informationTax Potholes and Pitfalls
Tax Potholes And Pitfalls January 31, 2013 Paul Neiffer, CPA 1 1 Agenda Background on CLA and other items. Update on the New Tax Laws Tax Potholes and Pitfalls Crop Insurance Tax Planning for 2012/13.
More informationHERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES
HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2019 I. Overview of federal, Connecticut, and New York estate and gift taxes. A. Federal 1. 40% tax rate. 2. Unlimited estate and gift tax
More informationThursday, March WRM# TOPIC: The New Playing Field A Review of the Net Investment Income Tax and Final Regulations.
Thursday, March 27 2014 WRM# 14-12 The WRMarketplace is created exclusively for AALU Members by the AALU staff and Greenberg Traurig, one of the nation s leading tax and wealth management law firms. The
More informationThe current tax landscape and planning opportunities for clients
The current tax landscape and planning opportunities for clients Christopher P. Hennessey Lawyer and CPA Member, Putnam Business Advisory Group Faculty Director, Babson College Executive Education Not
More informationHow Tax Reforms Impacts Your Vineyard February 8, Presented by: Kathy Freshwater, CPA Craig Anderson, CPA
How Tax Reforms Impacts Your Vineyard February 8, 2018 Presented by: Kathy Freshwater, CPA Craig Anderson, CPA Presenters Kathy Freshwater Tax Senior Manager Yakima Craig Anderson Tax Partner Yakima High
More information2016 Tax Preparation Checklist. Documentation for Itemized Deductions
Essentials for Taxpayers For 2016 Federal Returns Due in April 2017 2016 Tax Preparation Checklist n Copy of 2015 tax return n Social Security number(s) taxpayers and dependents n W-2 forms from all employers
More information*Brackets adjusted for inflation in future years Long Term Capital Gains & Dividends Taxable income up to $413,200/$457,600 0% - 15%*
Income Tax Planning Overview The American Taxpayer Relief Act of 2012 extended prior law for certain income tax rates; however, it also increased income tax rates on upper income earners. Specifically,
More informationHERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR MARRIED COUPLES 2018 (Connecticut)
HERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR MARRIED COUPLES 2018 (Connecticut) I. Purposes of Estate Planning. A. Providing for the distribution and management of your assets after your death.
More informationnumer cal anal ysi shown, esul nei her guar ant ees nor ect ons, and act ual esul may gni cant Any assumpt ons est es, on, her val ues hypot het cal
Table of Contents Disclaimer Notice... 1 Disclosure Notice... 2 Charitable Gift Annuity (CGA)... 3 Charitable Giving Techniques... 4 Charitable Lead Annuity Trust (CLAT)... 5 Charitable Lead Unitrust (CLUT)...
More informationPlanning for the Future of Your Farm TAX IMPLICATIONS OF FARM TRANSFERS
Planning for the Future of Your Farm TAX IMPLICATIONS OF FARM TRANSFERS Estate Planning FORMAL DEFINITION: PROCESS OF ANTICIPATING AND ARRANGING FOR THE DISPOSAL OF AN ESTATE Typically maximizes value
More informationYEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format
2017 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS Short Format UPDATED November 2, 2017 www.cordascocpa.com 2017 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS INTRODUCTION With year-end approaching, this
More informationIssues AND. Tax-Powered Philanthropy: Doing well by doing good
Issues AND INSIGHTS February 2015 Tax-Powered Philanthropy: Doing well by doing good IN THIS ARTICLE Higher tax rates offer greater potential savings from charitable giving Strategies such as outright
More informationAmerican Taxpayer Relief Act of 2012 Workshop
American Taxpayer Relief Act of 2012 Workshop John Kilroy, CPA, CFP May 14, 2013 Agenda Estate, Gift and GST provisions Individual Income Tax provisions Trust and Estate Income Tax provisions Business
More information2018 tax planning guide
Advanced Planning 2018 tax planning guide We are committed to helping you confirm that your current and future tax strategy supports your larger financial goals. Advice. Beyond investing. Your financial
More informationMultigenerational Retirement Distribution Planning. Maximizing the Family Wealth Planning Benefits of Qualified Plans and IRAs
Multigenerational Retirement Distribution Planning Maximizing the Family Wealth Planning Benefits of Qualified Plans and IRAs Overview Qualified plans, IRAs and other tax-deferred plans often constitute
More informationEstate Planning. Uncertain Times. IRS Circular 230 Disclosure
Estate Planning IRS Circular 230 Disclosure To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments)
More informationCharitable Planning CLIENT GUIDE
Charitable Planning CLIENT GUIDE CHARITABLE PLANNING Giving to charity can provide many benefits and opportunities, both to the charity and to you. The charity, benefits from a donation that can help further
More informationCharitable Planned Giving Strategies
Charitable Planned Giving Strategies Courtesy of: Yellowstone Boys & Girls Ranch Foundation, Inc. This presentation was prepared for educational purposes only. It must not be used as a basis for tax or
More informationHow the 3.8% Medicare Surtax Affects Charitable Giving
How the 3.8% Medicare Surtax Affects Charitable Giving September 26, 2013 Jeremiah W. Doyle, IV Senior Vice President jere.doyle@bnymellon.com Agenda Background Net Investment Income (NII) Charitable Remainder
More informationline of Sight Tax Transitions Navigating the Continuing Complexities of a Changing Landscape Suzanne Shier Tax Strategist
line of Sight 2012 2013 Tax Transitions Navigating the Continuing Complexities of a Changing Landscape Suzanne Shier Tax Strategist We hope you enjoy the latest presentation from Northern Trust s Line
More informationThe top federal income tax rate has increased from 35% to 39.6%. All other federal income tax rates are the same as they were in 2012.
Gift Planning and the New Tax Law PG Calc Featured Article, February 2013 http://www.pgcalc.com/about/featured-article-february-2013.htm The American Taxpayer Relief Act (ATRA) passed by Congress on January
More informationCharitable Giving: Tax Benefits and Strategies
Charitable Giving: Tax Benefits and Strategies CPAs Attorneys Enrolled Agents Tax Professionals Professional Education Network TM Contents 1 Introduction 2 Overview of Tax Benefits 3 Tax Treatment of Gifts
More informationThe Dallas Foundation
RETIREMENT ACCOUNTS: Planning Optimal Outcomes for Family and Charitable Objectives The Dallas Foundation Dallas, Texas January 22, 2016 CHRISTOPHER R. HOYT University of Missouri - Kansas City School
More informationLife Events and Taxes
SHIRLEY W. HATCHER, CPA, PA... all things accounting and tax... Life Events and Taxes Life is full of milestones. It s those significant events that we all go through at some point in our lives, like getting
More informationUnderstanding TRUSTS. A Summary of Trusts for Estate Planning VLC
Understanding TRUSTS A Summary of Trusts for Estate Planning VLC0009-0417 TABLE OF CONTENTS What Is a Trust.... 1 Who s Who in a Trust.... 2 Types of Trusts... 3 Taxation.... 4 Frequently Asked Questions....
More information2013 NEW DEVELOPMENTS LETTER
2013 NEW DEVELOPMENTS LETTER INTRODUCTION We have witnessed more tax changes and developments in 2013 than in any year in recent memory, and these changes impact virtually every individual and business
More informationTaxes and the Affordable Care Act
1 Taxes and the Affordable Care Act I. Introduction A. On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act. [P.L. 111-148] The law is most often referred to
More informationVolume 9, Issue Broadway Woodmere, NY (516)
How to Avoid a Basis Management Disaster Many of us in the legal, financial and accounting worlds discover our new clients well-intentioned, yet disastrous, plans after the fact. The widow has already
More information901 East Cary Street, Suite 1100, Richmond, VA
2017 Tax Planning & Reference Guide The 2017 Tax Planning & Reference Guide is designed as a reference and is not intended to function as tax advice. Please consult your professional accounting advisor
More informationTHE AGENDA YEAR END TAX PLANNING
YEAR END TAX PLANNING TUESDAY, DECEMBER 8, 2015 PRESENTED BY: JOE CAWLEY, CPA, PRINCIPAL-JOECAWLEY@BSSF.COM JOHN WEIDMAN, CPA, PRINCIPAL-JOHNWEIDMAN@BSSF.COM PHONE NUMBER-(717)761-7171 1 THE AGENDA Part
More informationDavis & associates, p.a. Certified Public Accountants and Consultants
209 FEDERAL TAX RATES Davis & Associates, p.a. Certified Public Accountants and Consultants 97 Washingtonian Boulevard, Suite 550 Gaithersburg, Maryland 20878 Phone: 30.963.6696 Fax: 30.963.6693 www.daviscpas.com
More informationTIL/RESPA Final Rules on Integrated Mortgage Disclosures
TIL/RESPA Final Rules on Integrated Mortgage Disclosures CLAconnect.com Disclaimers The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting,
More informationHERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR SINGLE, DIVORCED, AND WIDOWED PEOPLE (Connecticut)
HERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR SINGLE, DIVORCED, AND WIDOWED PEOPLE - 2017 (Connecticut) I. Purposes of Estate Planning. II. A. Providing for the distribution and management of your
More informationCharitable Giving for Entrepreneurs after TCJA
Charitable Giving for Entrepreneurs after TCJA Brian T. Whitlock, CPA, JD, LLM THE GLOBAL FOODBANKING NETWORK Agenda Overview of charitable giving pre-tcja Review TCJA Changes Impacting Charitable Giving
More informationEstate Planning Seminar. Wednesday, December 6, 2017 Courtyard Marriott ~ Mankato, MN
Estate Planning Seminar Wednesday, December 6, 2017 Courtyard Marriott ~ Mankato, MN Minnesota Estate Tax Recent Changes, Tips and Traps for the Unwary Kaitlin Pals Gislason & Hunter LLP Introduction Minnesota
More information2017 Tax Planning Tables
2017 Tax Planning Tables 2017 Important Deadlines Last day to January 17 Pay fourth-quarter 2016 federal individual estimated income tax January 25 Buy in to close a short-against-the-box position (regular-way
More informationHERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR SINGLE, DIVORCED, AND WIDOWED PEOPLE (New York)
HERMENZE & MARCANTONIO LLC ESTATE PLANNING PRIMER FOR SINGLE, DIVORCED, AND WIDOWED PEOPLE - 2018 (New York) I. Purposes of Estate Planning. A. Providing for the distribution and management of your assets
More informationcharitable contributions
charitable contributions Your ability to control when and how you make charitable contributions can lower your income tax bill, effectively reducing the actual cost of any gift you make, while fulfilling
More informationUnrelated Business Income
Unrelated Business Income Tax Exempt Update October 17, 2013 cliftonlarsonallen.com Circular 230 To ensure compliance imposed by IRS Circular 230, any U. S. federal tax advice contained in this presentation
More informationTAX CUTS AND JOBS ACT SUMMARY
TAX CUTS AND JOBS ACT SUMMARY Mariner Retirement Advisors The Tax Cuts and Jobs Act ( TCJA ) was signed by President Trump on December 22, 2017. The Act makes sweeping changes to the U.S. tax code and
More informationMay 3, 2013 Circulation: 10,956. How to minimize income taxes for estates, trusts and beneficiaries
May 3, 2013 Circulation: 10,956 Game Change How to minimize income taxes for estates, trusts and beneficiaries May 3, 2013 Scott Goldberger and John Anzivino On Jan. 1, 2013, the income tax playing field
More information2018 Tax Planning & Reference Guide
2018 Tax Planning & Reference Guide The 2018 Tax Planning & Reference Guide is designed to be a reference only and is not intended to provide tax advice. Please consult your professional tax advisor prior
More informationLife Estate Agreement Presentation Input Screen Deduction Questions Case Name NEW CASE -----
Life Estate Agreement Presentation Input Screen Deduction Questions Case Name ----- NEW CASE ----- Name for Reports Mary Stokes Value of Residence 1,000,000 Cost Basis of Residence 200,000 Debt on Residence
More information2016 Tax Planning Tables
2016 Tax Planning Tables 2016 Important Deadlines Last day to January 15 Pay fourth-quarter 2015 federal individual estimated income tax January 26 Buy in to close a short-against-the-box position (regular-way
More information