Closing a business involves a number of tax responsibilities
While many facets of the economy have improved this year, the rising cost of living and other economic factors have caused many businesses to close their doors. If yours is among them, we can help you take care of various tax obligations. Contact the CPAs and tax advisors at SEK with questions and to discuss these issues.
Provide for multiple generations using a dynasty trust
A dynasty trust can preserve substantial amounts of wealth (and potentially shelter it from federal gift, estate and generation-skipping transfer taxes) for generations to come. Plus, it can provide various other benefits and protections for families for an extended period (perhaps forever). The trust can be established during your lifetime, as an inter vivos trust, or part of your will as a testamentary trust. Contact the CPAs and estate advisors at SEK for more information.
Six tax issues to consider if you’re getting divorced
Divorce entails difficult personal issues, and taxes are probably the farthest thing from your mind. However, they should be considered to keep taxes to a minimum. Contact the CPAs and tax advisors at SEK with your divorce financial issues.
If your business has co-owners, you probably need a buy-sell agreement
Are you buying a business that will have one or more co-owners? Or do you already own one fitting that description? If so, consider installing a buy-sell agreement. A well-drafted agreement can: 1) transform your business ownership interest into a more liquid asset, 2) prevent unwanted ownership changes, and 3) avoid estate tax hassles with the IRS. Contact the CPAs and business tax advisors at SEK about setting up a buy-sell agreement.
Nonprofit refresher course: Excess benefit transactions
To understand the need for nonprofits to avoid excess benefit transactions, it helps to also comprehend the concept of private inurement. If any net earnings inure to the private benefit of an individual, the IRS won’t view your nonprofit as operating primarily to further its tax-exempt purpose. But you must be able to prove transactions were made with your tax-exempt purpose in mind. Contact the CPAs and business advisors at SEK for more information.
Planning your estate? Don’t overlook income taxes
The high federal estate tax exemption means that many people aren’t concerned with estate tax. But you should still consider saving income tax for your heirs. A gift carries a potential income tax cost because the recipient receives your basis upon transfer. He or she could face capital gains tax on the future sale of the gifted property. Contact the CPAs and tax advisors at SEK with your tax planning questions.
Be aware of the tax consequences of selling business property
If you’re selling property used in your trade or business, you should understand the tax implications. Many rules may apply. Contact the CPAs and tax advisors at SEK with your tax questions.
How your board should evolve over your nonprofit’s life
A board of directors is critical to keeping a not-for-profit focused over the years as it grows. But how do nonprofit boards change over time? In part, it depends on the organization and its mission. Its life stage will also help determine your board’s priorities, responsibilities and composition. Contact the business advisors at SEK for help with your nonprofit.
A self-directed IRA can benefit your estate plan — but know the risks
IRAs can be powerful estate planning tools. With a “self-directed” IRA, you may be able to amp up the benefits of these tools by enabling them to hold nontraditional investments that offer potentially greater returns. However, it may also present unfavorable tax consequences. Contact the CPAs and tax advisors at SEK for your estate planning questions.
Certain charitable donations allow you to avoid taxable IRA withdrawals
Are you philanthropic? If you’re 70½ or older, you may want to consider making a potential tax-saving strategy called a qualified charitable distribution (QCD). How does it save tax? The money given to charity counts toward your RMDs but doesn’t increase your adjusted gross income (AGI), which may allow you to qualify for other tax breaks. Questions? Contact the CPAs and tax advisors at SEK.