The final weeks of 2019 brought the second major piece of tax legislation in the past 24 months, as the SECURE Act (The Setting Every Community Up for Retirement Enhancement Act), which was passed in the House over the summer, finally made its way through the Senate and was signed into law by the President. The legislation may have significant repercussions for individuals engaged in retirement and estate planning.
Since 2006, IRA owners who are at least 70 1/2 can make a Qualified Charitable (QCD) of up to $100,000 directly from their IRA to a charity without having to include the distribution in taxable income. As a result of the late-2017 tax law passed by Congress, the Tax Cuts and Jobs Act (TCJA), the OCD strategy has become even more valuable to taxpayers.
Just as the government shutdown ended, the IRS kicked-off its’ 2019 tax filing season this week on Monday, January 28th. With the window now open to file returns, we would like to draw your attention to the new postcard-sized 1040…and why it may not be as simple as it seems.
With only six weeks left in the year, we outline two planning strategies that may be relevant for you in 2018 following the 2017 Tax Cuts and Jobs Act (TCJA) – both are related to Charitable Donations and could yield significant tax savings.
Tax-Deferral Opportunity on the Sale of Low-Basis Assets:
Are you considering selling stock, real estate, or a business that has substantially appreciated in value? Are you concerned with the capital gains tax that will accompany those sales?
The December 2017 Tax Cuts and Jobs Act (TCJA) provides a new tax incentive and potential solution for investors to defer, if not eliminate, capital gains tax on the sales of assets in exchange for investments back into Qualified Opportunity Zones (“QOZs”) across the Commonwealth. Click here for more details