Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo
The Basic Strategy:
Avoid the high taxes (up to 40.8 percent) on short-term capital gains and ordinary income.
Lower the taxes to zero—or if you can’t do that, then lower them to 23.8 percent or less by making the profits subject to long-term capital gains taxes.
Think of this: you are paying taxes at a 71.4 percent higher rate when you pay at 40.8 percent rather than the tax-favored 23.8 percent.
And if you can avoid that higher rate with some easy adjustments in your stock portfolio, doesn’t it make sense to ...
The Tax Cuts and Jobs Act (TCJA) tossed an unwanted rule into Section 1031 by forbidding exchanges of personal property.
But before we move on, let’s clarify one thing: Section 1031 is not an “exchange,” which is defined by Merriam-Webster as a trade. In a tax code 1031 exchange, you generally would:
Engage an intermediary to handle the money and the tax paperwork;
Sell your real property; and
Buy the replacement property
So you are buying and selling, but when you do this under the Section 1031 tax rules, you don’t pay taxes on the sale. Pretty sweet, huh?
You are not off the hook. You can look at it this way: with the ...
We won't say we were barraged with questions of concern after the announcement of the most sweeping U.S. tax legislation in more than 30 years, but pretty darn close. At least we're starting to have "Strategic" conversation about Taxes now instead of it being an afterthought.
The 2017 Tax Cuts and Jobs Act and Opportunities
While the new legislation includes many pro-growth features, including a deep reduction in the corporate tax rate, a scaled-back state, and the local tax deduction, full expensing for five years, and lower individual tax rates, discipline is essential.
It is essential that discipline be practiced at the corporate leadership ...
Tax incentives still matter. While “follow the money” is an excellent concept for seeking greater information about “what has happened”, by identifying and following the incentives is far superior for determining what “will” happen”. In economic terms, the differences are substantial. One is a lagging indicator (where we have been) and the other is the leading indicator (where we are going).
The new law states, no deduction is allowed for any settlement, payout, or attorney fees related to sexual harassment or sexual abuse if such payments are subject to a nondisclosure agreement.
While fiscal purists dislike using the ...