Since 2018, with the enactment of the Tax Cuts and Jobs Act, the individual income tax Schedule A itemized deduction for state and local tax (SALT) has been limited to $10,000 ($5,000 for MFS). The $10,000 limit includes state and local income taxes, as well as property taxes. As a workaround to this limitation, on…
Compensation may take several forms, including salary, fringe benefits and bonuses. If you’re an executive or other key employee, you might receive stock-based compensation, such as restricted stock, restricted stock units (RSUs) or stock options (either incentive or nonqualified). Nonqualified deferred compensation (NQDC) may also be included in your exec comp package. The tax consequences…
Because the TCJA has put estate, gift and generation skipping transfer (GST) tax exemptions at record-high levels, far fewer taxpayers are worrying about these taxes. But the high exemptions are only temporary, and proposed tax law changes could also increase taxes when assets are transferred. So whether or not you’d be subject to estate taxes…
Robert has an estate of $12 million. In 2021, he has already made $15,000 annual exclusion gifts to each of his chosen beneficiaries. With future inflation adjustments, the exemption might be enough to protect his entire estate. But he’s in good health and believes he’ll live beyond 2025. He also thinks that the exemption might…
The following article is included in our 2021-22 Tax Planning Guide. Download the full PDF file now. The tax strategies that can save you the most will depend on your particular situation. For example, if you’re a parent, a tax-advantaged education savings plan may be a smart move. Or, if you’re married, a credit shelter…