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Tax Planning Archives | Wealthspire

tax savings qsbs

The Powerful Tax Savings of “Qualified Small Business Stock”

By Blog
IRC Section 1202 provides one of the most powerful tax benefits in the U.S. Internal Revenue Code (IRC) to entrepreneurs and investors. However, it is also one of the least recognized IRC Sections, even amongst those who stand to most benefit from its use. Section 1202 provides an exclusion from taxation to a qualified investor of up to $10 million of capital gain or 10 times the stockholder’s adjusted cost basis, whichever is greater, upon the sale of Qualified Small Business Stock (QSBS). Why has such a generous provision in the tax code gone comparatively unnoticed? A look back at…
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biden tax proposal

Back to the Future? A Look at Biden’s Tax Proposals

By Blog
Somehow lost in all of the news coverage of the COVID-19 pandemic and social unrest, Joe Biden, the former Vice President and current Democratic nominee for President, has proposed a number of individual, payroll, and corporate tax increases to fund new or expanded government programs. The proposal comes as Biden has partnered with Vermont senator Bernie Sanders to further attract progressives to his campaign and allure voters in November. These proposals will have a material impact on higher-income taxpayers. Individual Taxes Summary In general, higher-income taxpayers would face significantly increased income and payroll taxes. The changes would repeal the income…
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planning opportunities

Planning Strategies to Consider in a Volatile Environment

By and Blog
While the Coronavirus pandemic has brought its share of fear and anxiety, it also brings some favorable financial planning opportunities that can be of significant benefit for you and your family. Below are some opportunities to consider. 1. Harvesting Capital Losses: An approximate 20% decline in equity markets from the early year high, along with volatility in sectors of fixed income markets have caused security values to decline.  As we periodically rebalance portfolios, in taxable accounts we look to realize capital losses and replace sold positions with similar, but not identical, securities to maintain desired exposures. When we “harvest” capital…
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tax law changes

Estate Planning in Light of Tax Reform: Your Questions and Our Answers – 2020 Update

By and Blog
This post will help you unpack some of the estate and gift tax provisions of the 2017 Tax Reform Act, as well as answer some of the most pressing questions raised by the changes. In a nutshell, what stayed the same and what changed? One major item that stayed the same is the simple existence of an estate tax. The initial tax reform bill from the House called for a complete elimination of the estate tax, which didn’t make its way into the final law. Trump had also talked about altering the current date-of-death basis step-up for gains above a…
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cliff

Mitigate New York’s Estate Tax Cliff with Smart Estate Planning and Gifting Strategies – 2020 Update

By and Blog
While the large increase in the federal estate tax exemption has provided many with federal estate tax relief, New Yorkers must continue to plan for New York estate tax. For a quick review of the New York Estate Tax “Cliff” basics, see the “Understanding New York’s Estate Tax “Cliff” blog post. What is the current exemption from New York estate tax again? The current New York estate tax exemption amount is $5,850,000 for 2020. Under current law, this number will remain until January 1, 2021, at which point it will rise again with inflation. Who does the Cliff affect? Everyone…
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gst tax

Basics of Federal Estate, Gift and Generation-Skipping Transfer (“GST”) Tax – 2020 Update

By and Blog
The bad news is that there is a Federal tax on assets that you give away during life, at death, and to individuals two or more generations below you. The good news is that this tax will only apply to the wealthiest Americans and, even so, there are strategies you can use to minimize or avoid its application. The Federal estate, gift and GST tax only kicks in above a certain dollar threshold. Furthermore, there are additional wealth transfer strategies that do not trigger any tax at all if structured properly. Taxable Gifts There is a Federal estate and gift…
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tax cheat sheet

2020 Federal & State Estate and Gift Tax Cheat Sheet

By and Guides & Whitepapers
Here we have provided a “cheat sheet” to keep in mind for 2020 federal estate, gift and GST exemptions, as well as exemptions and inheritance tax consequences in specific states where a number of our clients reside. Federal Estate, Gift, and GST Tax Below is a summary of the current federal estate, gift, and generation-skipping transfer tax provisions for 2020. Note that, under current law, the increases in exemption amounts that began in 2018 are set to expire in 2026, at which point they will revert back to the pre-2018 numbers (i.e., $5,490,000 per person, indexed for inflation). Gift and…
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