CTP

AUGUST 3, 2023

If you are holding an asset as an investment through your pass-through business, when you sell that asset it is recorded as capital income and then reported on your personal tax return as the owner. Taxpayers who began their careers more recently often have a lower income and can often benefit from the 0% rate.

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CTP

NOVEMBER 23, 2023

One of the hidden benefits of setting up your business as a partnership is the ability to use special tax allocations. Because a partnership is a pass-through entity, income, losses, credits, and deductions “pass through” to the business owners who are taxed at personal income tax rates.

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CTP

NOVEMBER 25, 2022

Saving for college through a 529 plan can simultaneously help you reach your college savings goals and reduce your taxes. In most states, the money you contribute to your plan is tax-deductible on your state income tax return. As your money grows, you’re not taxed on the income your plan returns.

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CTP

MARCH 2, 2022

If successful, the assets are transferred to the beneficiaries with no gift or estate tax in the remainder term. IDGTs (Intentionally Defective Grantor Trusts) : The trust removes assets from the owner’s estate for gift and estate tax purposes but not income tax purposes. 13] This further reduces taxable estate.

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CTP

JULY 20, 2023

Know the Basics for Strategic Timing From a tax perspective, the goal is typically to move from short-term to long-term capital gains tax. Short-term capital gains are taxed at ordinary income tax rates, which will be 22% or higher for middle-to-upper-class taxpayers. Image by Sergei Tokmakov, Esq.

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CTP

JUNE 9, 2025

For one, you don’t have to go on this tax planning journey alone. Our network of Certified Tax Planners would be more than happy to help take on the load and guide you through the best practices for creating a 2025 tax plan. This is what your tax plan should look like if no new laws are passed this year.

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CTP

JANUARY 24, 2025

Taxpayers have three choices when planning for the future: Set aside cash for a rainy day. The downside is that you are paying regular income tax on these funds. Again, the downside is you are still paying tax on those funds, lowering the total available. This makes for a great tax planning strategy.

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CTP

JUNE 2, 2025

And what does it look like to strategize for tax savings when tax policy could look completely different by the end of this year? As professional tax planners would tell you, good tax planning is about being proactivewhich is different from being premature. Which Tax Provisions Could Expire This Year?

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