With the uncertainty surrounding the future of the lifetime gift and estate tax exemption, which is set to be cut in half if the applicable provisions of the 2017 Tax Cuts and Jobs Act expire, many people are exploring their options for reducing the size of their estates to avoid paying federal estate taxes. Rising…
After declines in the number of mergers and acquisitions (M&A) in 2022 and 2023, 2024 was expected to mark a year of significant growth. Although the pace of deals did increase last year, the anticipated rebound did not fully come to pass, thanks to a challenging regulatory environment that impeded some of the largest proposed…
Bitcoin, the world’s most well-known cryptocurrency, was invented in 2008 as a form of decentralized digital currency that has soared in value since individuals first started buying and trading it. While its overall volatility tends to limit its use as payment for transactions, many investors have begun incorporating cryptocurrency into their portfolios to take advantage…
In a major update today, the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction enjoining the Corporate Transparency Act (CTA) entered in the case of Texas Top Cop Shop, Inc. v. Garland. As a result, FinCEN has posted the following on its website within the last few hours: In…
Key Points: Expanding into the U.S. market presents global companies with a complex tax landscape. Key considerations include: Navigating these tax considerations effectively necessitates comprehensive planning and consultation with tax professionals to ensure compliance and optimize tax positions. Main Article: For international companies, expanding into the US, the world’s largest economy, is a logical target…
What is a Charitable Remainder Annuity Trust (CRAT)? A CRAT is a type of Charitable Remainder Trust (CRT), and is specifically designed to provide a steady income to one or more non-charitable beneficiaries (such as the donor or their family) for a specified term or the lifetime of the beneficiaries. At the end of the…
Key Differences among CRTs Charitable Remainder Trusts (CRTs) are powerful tools for charitable giving, philanthropy and financial planning, offering individuals a way to secure income, avoid capital gains taxes, and make impactful charitable contributions. Within the CRT framework, there are three primary types to consider: Standard Charitable Remainder Unitrusts (SCRUTs), Net Income with Makeup Provision…
As 2024 draws to a close, the beneficial ownership information reporting deadline is looming fast for existing reporting companies. This requirement was imposed by the Corporate Transparency Act (CTA) that was passed by Congress as part of the Anti-Money Laundering Act of 2020, an effort to fight money laundering and other illegal activities that have…
Understanding Income Tax Limits on Charitable Deductions Income Tax Limits Table Recipient Organization Type of Gift Deduction Limit Valuation Public Charities, Donor-Advised Funds, Private Operating Foundations (50% Orgs) Cash 60% of AG (scheduled to sunset to 50% beg. 2026) Cash Value Long-Term Cap Gain (e.g., stocks, real estate), Choice of: 30% of AGI Fair…
Private Operating Foundations vs. Non-Operating Foundations: Key Differences for Philanthropic Success In the world of charitable giving strategies, private foundations offer individuals and families a unique opportunity to create a lasting legacy while supporting charitable causes they care about. Read here on private foundations, generally. In this article, I discuss the major differences between a…
One of the main distinctions the IRS has established that distinguishes public charities from private foundations, is the broad base of support from the public that is required to establish a public charity. To qualify as a public charity under Section 501(c)(3) of the Internal Revenue Code, an organization must meet specific requirements regarding the…
When someone has, through hard work and good fortune, built up substantial assets, the threat of losing a substantial chunk of it to creditors or as the result of a lawsuit looms large. While California is often regarded as being unfriendly to those seeking to preserve their wealth due to higher taxes, tough regulations, and…
Diversification of investments is typically thought of as the best strategy to grow wealth and protect an individual’s holdings from the vagaries of the economy. Real estate in particular has become an attractive option for high-net-worth individuals looking for investment options beyond having a stock portfolio. While from an investment standpoint this has significant benefits,…
In an interconnected world where professional and personal opportunities more and more often result in people having family, property, and interests all over the globe, the question of how to protect the assets they’ve built becomes much more complex. Living an international lifestyle means that estate planning may not be governed solely by the laws…
The beneficial ownership information (BOI) reporting requirements mandated by the Corporate Transparency Act (CTA), which go into effect on January 1, 2024, have clear implications for business entities that were not previously compelled to provide information on their ownership or management. However, they can also affect trusts, depending on the business assets a trust holds….
In 2021, the Corporate Transparency Act (CTA) passed with bipartisan support. As part of the Anti-Money Laundering Act of 2020, the CTA is intended to help bring US law in line with safeguards in other developed countries intended to prevent the flow of illicit money through anonymous shell companies by requiring the US Department of…
Most homeowners aren’t experts on all the details of the laws affecting their homeownership, and it doesn’t help when two rather different legal benefits have confusingly similar names. In California, the homeowners’ exemption and the homestead exemption may sound alike, but they are far from the same. One provides a slight property tax break, while…
With the sudden closures of some major regional and industry-specific banks, many people are worried about their FDIC coverages for accounts held in trust. This is a good opportunity to review the rules when it comes to FDIC insurance and trusts. In fact, the FDIC approved changes, on January 21, 2022, to the deposit insurance…
This is Part 2 in a three-part series about Estate Planning for Non-Citizens. In Part 1, I discussed general issues involving non-citizen planning. In Part 3, I discuss the various ways foreigners can own U.S. real property. Who Needs a QDOT? One of the lesser known benefits of US citizenship is something called the “unlimited…
On July 16, 2021, Governor Gavin Newsom signed Assembly Bill 150 into law. This bill enables certain California taxpayers to write off more than the $10,000 limit placed on state and local tax (SALT) deductions — but it’s not automatic, you need to know what to do to get this relief. BRIEF HISTORY OF SALT…
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