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2023 Tax Considerations
(Date posted: November 9, 2023)
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- Individual Income Tax Provisions
- Education
- Trust and Estate Income Tax
- Estate, Gift and Generation-Skipping Transfer Taxes
- Pension and IRA Provisions
- Business Provisions
- Sole Proprietorships, S Corporations & Partnerships Tax Changes
- Inflation Reduction Act of 2022
- Analysis of Key Tax Provisions in Secure 2.0
- Analysis of Key Retirement Provisions in Secure 2.0
- Illinois Makes Changes Affecting Various Taxes
- Things to Consider Before the End of 2023
- 2023 Tax Rate Schedule
- 2024 Tax Rate Schedule
When businesses may want to take a contrary approach with income and deductions
(Date posted: April 25, 2024)
Businesses usually want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it wise to do the opposite? And why would you want to?
One reason might be tax law changes that raise tax rates. The Biden administration has proposed raising the corporate federal income tax rate from its current flat 21% to 28%. Another reason may be because you expect your noncorporate pass-through entity business to pay taxes at higher rates in the future and the pass-through income will be taxed on your personal return. There have also been discussions in Washington about raising individual federal income tax rates.
If you believe your business income could be subject to tax rate increases, you might want to accelerate income recognition into the current tax year to benefit from the current lower tax rates. At the same time, you may want to postpone deductions into a later tax year, when rates are higher and the deductions will be more beneficial.
Watch out for “income in respect of a decedent” issues when receiving an inheritance
(Date posted: April 23, 2024)
Most people are genuinely appreciative of inheritances, and who wouldn’t enjoy some unexpected money? But in some cases, it may turn out to be too good to be true. While most inherited property is tax-free to the recipient, this isn’t always the case with property that’s considered income in respect of a decedent (IRD). If you have large balances in an IRA or other retirement account — or inherit such assets — IRD may be a significant estate planning issue.
The pros and cons of turning your home into a rental
(Date posted: April 16, 2024)
If you’re buying a new home, you may have thought about keeping your current home and renting it out. In March, average rents for one- and two-bedroom residences were $1,487 and $1,847, respectively, according to the latest Zumper National Rent Report.
Keep these 3 issues in mind after you file your return
(Date posted: April 9, 2024)
The tax filing deadline for 2023 tax returns is April 15 this year. If you need more time, you can file for an extension until October 15. In either case, once your 2023 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations.
