February 11, 2019
If you haven’t already, this might be the year to create separate trusts for individual beneficiaries instead of a single trust. While it may make the most sense when children are young, many factors influence the beneficiaries as they age.
Beneficiaries of different ages, family size, risk tolerance for investments and economic status as adults are all reasons why a single trust creates family tension.
The IRS determined that if a trust is divided into subtrusts and each subtrust has a different primary beneficiary, each subtrust will be treated as a separate trust for federal income tax purposes.
In case you missed it, we talked more about the qualified business income (QBI) deduction in this earlier blog post.
Sec. 199A creates a QBI deduction for taxpayers other than corporations.
The "combined qualified business income amount" is:
● The sum of the Sec. 199A(b)(2) amounts plus 20% of the aggregate amount of qualified real estate investment trust dividends and qualified publicly traded partnership income.
● The Sec. 199A(b)(2) amount is 20% of the QBI for each trade or business if the taxpayer's taxable income is under the threshold.
Taxable income of a nongrantor trust is determined before the distribution deduction and exemption amount.
The threshold for nongrantor trusts is $157,500, indexed for inflation after 2018.
BOSS is the answer to your back office headaches. Our cloud-based solution enables you to hand complex accounting tasks over to us. We work the numbers while providing you 24/7 access to your data—and all at a fixed, affordable monthly fee.
We understand that the countless number of tasks associated with running a successful practice leaves you with little time to deal with your numerous accounting and tax responsibilities. That is where ...read more
With proactive tax strategies and industry-specific expertise, we have a proven track record of helping property management firms succeed from...read more
If you contract your services as a salesperson, freelance writer, graphic designer, real estate professional, or other profession contact us to learn about the comprehensive, affordable...read more
Morgan & Associates has extensive experience in nonprofit accounting, currently providing audit and tax return services to a growing number of...read more
One red flag area for the IRS is when individuals claim that they’re running a business in order to write off their hobby expenses.
We can all get caught up in the day…meetings, calls, texts, emails and the myriad of other workday demands that pile up quickly and can create unwanted stress.
Part of the dread over IRS audits is the fear of the unknown. But how often does an audit actually happen?