Understanding the “step-up in basis” when inheriting assets
If you inherit assets, they often come with a valuable tax benefit called the step-up in basis. Basis is what the owner paid for an asset, with some possible adjustments. At death, many capital assets (such as stocks, real estate and business interests) are generally stepped up to their fair market value (FMV) as of the date of death. The heir’s basis is the FMV, erasing the tax on any gain accumulated during the deceased person’s life. Contact our tax advisors with questions.
Nonprofits: Promoting good governance with a board policy
Creating a board governance policy can provide directors with a framework to make ethical decisions, take appropriate actions, and handle real or potential conflicts. You might want to consult financial and legal advisors if your board is unsure what to do in a particular situation. Contact our nonprofit advisors for more information on governance.
The GST tax and your estate plan: What you need to know
To share wealth with grandchildren, great-grandchildren or other remote generations, special planning may be required to keep generation-skipping transfer (GST) taxes to a minimum. Contact our estate planning advisors with questions.
Three SEK Leaders Named Best-In-State CPAs for 2025 by Forbes
We’re proud to celebrate three SEK Members who were recently named to the Forbes 2025 list of Best-In-State CPAs – two in Pennsylvania and one in Maryland! To view the complete list of honorees, visit:
Simple retirement savings options for your small business
If you’re thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved, there are a couple of options to consider. Let’s take a look at a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE).
Need to modify an existing irrevocable trust? Decant it
“Decanting” an irrevocable trust allows a trustee to use distribution powers to transfer assets from one trust into another with different, often more favorable, terms. While the original trust must be irrevocable, meaning its terms typically can’t be changed by the grantor, decanting offers a lawful method for trustees to update those terms under certain conditions. Contact SEK's estate planning advisors for details.
What tax records can you throw away?
After filing, you may want to do some spring cleaning and discard tax documents. But don’t throw away records you might need in the case of an IRS audit. Here are the rules. Contact our individual tax advisors with questions.
“Privacy, please” when your nonprofit stores sensitive data
A critical issue that’s neglected too often by not-for-profits is the protection of private data. Assess your organization’s risk and ensure your security procedures protect records. Make sure your nonprofit complies with all applicable privacy laws.
Tax document retention guidelines for small businesses
You may have breathed a sigh of relief after filing your income tax return (or requesting an extension). But if your office is strewn with reams of paper consisting of years’ worth of tax returns, receipts, canceled checks and other financial records (or your computer desktop is filled with a multitude of digital tax-related files), you probably want to get rid of what you can. Follow these retention guidelines as you clean up.
Tax record retention guidelines for individuals
What tax records can you toss once you’ve filed your return? The answer is simple: none. You need to hold on to all of your tax records for now. But it’s the perfect time to go through old tax records and see what you can discard.