The Estate Tax Is Dead. What This Means For The Rest Of The Living

The original purpose for the enactment of the estate tax in 1916 was to be a temporary tax used to pay off the war bonds of WWI. One hundred years later and it’s still around. However, Donald Trump has pledged to repeal the estate tax, although presidential candidates promising to repeal the estate tax is standard campaign rhetoric in every election. However, this time around, with the incoming Trump Administration, it may be more than just talk.

Fitzpatrick V. Commissioner & The Trust Fund Penalty – The Aggressive IRS Loses A Big Case

How aggressive is the IRS in enforcing and collecting Trust Fund Recovery Penalties? A case from the U.S. Tax Court case illustrates the aggressive nature of the IRS when using the trust fund recovery penalty (TFRP) to collect trust fund taxes. Business enterprises must be careful to ensure that they do not incur Trust Fund Recovery Penalties for any failure to remit federal payroll and trust fund taxes when due.

Most Confusing Parts Of The Income Tax Code, Part 4: Education Tax Incentives

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The fourth part of our series about the most confusing provisions of the Internal Revenue Code addresses education tax incentives.

Why Is It Confusing?

  • There are a large list of incentives from which to choose
  • New stricter requirements to establish eligibility for some incentives
  • Determining eligibility is a complicated, arduous, lengthy process
  • Difficulty in determining the correct and appropriate benefit

New IRS Statistics Show A Concentration Of U.S. Income Among Only A Few

The U.S. has a progressive income tax system. Therefore, the rate of tax increases as taxable income increases. The purpose of imposing progressive taxes is to reduce the tax incidence of people with a lower ability to pay taxes, as these taxes shift increasingly to those with a higher ability-to-pay. Thus, the bulk of tax revenue is in high-income households.

Statistics just released by the IRS show that the top 1% of households received more than 20% of adjusted gross income in 2014 while paying almost 40% of income taxes. Less than 4% of income tax is paid by the bottom 50% of households. Federal tax rates in 2015 varied from 10% to 39.6%.

President Trump’s 2005 Tax Returns – What It Tells Us

President Trump’s 2005 Tax Return – What It Tells Us

Yesterday, Tuesday March 14, 2017, while most of the New England area was buried in snow, MSNBC published President Trump’s 2005 income tax return – or at least the first two pages of it.  What does the return tell us and what does it not?

The Basics – We know he had a positive income in the amount of $152,737,866 and $103,201,242 in tax write-offs.  He paid a total of $38,435,451 in taxes for the year.

About Trump’s Tax Plan

It remains to be seen the specific tax plan that Donald Trump will implement as President of the United States. The effects of Donald Trump’s tax plan will depend on taxpayers’ income and tax planning. Some think that Trump’s plan will significantly reduce income and corporate taxes, and eliminate the estate tax. It seems the plan’s largest effect on individual taxpayers will be to reduce the top tax bracket 6.6 percentage points from 39.6 percent to 33 percent.

Most Confusing Parts Of The Income Tax Code, Part 3: Retirement Accounts

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The third part of our series about the most confusing provisions of the Internal Revenue Code addresses retirement accounts.

There are over a dozen different tax-advantaged retirement savings accounts, each with its own set of rules governing contributions, distributions and when money may be withdrawn without incurring any penalties.

Why Is It Confusing?

  • There are a large list of incentives from which to choose

The Effects Of Trump’s Tax Plan On Individuals And Businesses

Donald Trump’s most current tax plan promises to save taxes for most individual taxpayers. One way is the elimination of the alternative minimum tax. What are some other ways? Trump’s tax plan:

  • Adapts the current rates for qualified capital gains and dividends to the new brackets.
  • Eliminates the head of household filing status.
  • Eliminates the Net Investment Income Tax.
  • Increases the standard deduction from $6,300 to $15,000 for singles and from $12,600 to $30,000 for married couples filing jointly.

Alec Baldwin Accused Of Avoiding New York Sales Tax On Painting Purchase

Donald Trump certainly has a few tax issues looming over him as he takes over the Oval Office. Alec Baldwin, known for his impersonation of Trump during the months leading up to the election, coincidentally also has an issue regarding the payment of taxes, specifically tax evasion.

In 2010, Baldwin purchased the Bleckner painting “Sea and Mirror” for $190,000. In September of 2016, Baldwin sued New York City art dealer Mary Boone alleging that Boone delivered a similar Bleckner work, but not “Sea and Mirror.” Baldwin alleges in his complaint that Boone promised to obtain the painting from an unnamed collector, but instead delivered a different piece of artwork, also painted by Bleckner. Baldwin is seeking damages measured by the difference between the purchase price of the painting Boone sold him and the current value of the original “Sea and Mirror.”

Most Confusing Parts Of The Income Tax Code, Part 2: Alternative Minimum Tax

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The second part of our series about the most confusing provisions of the Internal Revenue Code addresses everyone’s favorite, the alternative minimum tax.

Why Is It Confusing?

  • The AMT doesn’t seem to achieve its purpose
  • Taxpayers have to compute two taxes
  • The computation of the AMT itself is enormously long and complicated

Testimonials

Categories