In a recent ruling by the U.S. Supreme Court in the case of Connelly v. Internal Revenue Service, the court ruled that life insurance proceeds paid to a business as part of an entity-purchase buy-sell agreement increase the business's value for the purposes of determining the taxable estate of the deceased owner.
Last week, the Social Security Trustees published their annual report, projecting the program’s financial status for the next 75 years. Recent projections show that Social Security is approaching insolvency, highlighting the need for immediate reforms.
Delaware Statutory Trusts (DST) can be a valuable tool for real estate investors looking to diversify their real estate portfolios, defer taxes and more efficiently distribute real estate assets to multiple beneficiaries as part of their estate plan. Read more to see how DSTs are used in Financial Planning.
Most independent contractors don’t think of themselves as a “corporation” but to save on taxes you may want to consider an S-Corporation election. As an independent contractor operating as a sole proprietor, all income is subject to self-employment tax. By electing S-Corp status and splitting your income between a reasonable salary and distributions from the business you can potentially reduce the portion of your income subject to self-employment taxes.
Qualified retirements plans are a great way to save for the future and receive a current year tax deduction. However, independent contractors with no employees, are in a much more favorable position to maximize tax benefits without having to factor in the cost for employees.
As the country’s debt burden grows and we prepare for another presidential election there is a debate looming in DC that will have a significant impact on most Americans financial strategy. Between now and the end of 2025 Congress will have to vote to extend the 2017 tax cuts or they will expire (“sunset”) subjecting most to higher taxes.