Tax Warrior Chronicles

CAUTION: Restructuring Your Debt May Create Cancellation of Debt Income

Posted on Wed, Dec 09, 2020

By: Kyle Propsner, CPA, and Nastassja Markham Coletta, JD, LLM

 

Are you a business owner exploring new borrowings or the restructuring of current debt as a pathway to satisfy cash needs? Current economic conditions may present an opportunity to secure new borrowings at a discount or modify current debt with relaxed covenants, yields, terms, or rates. To avoid unforeseen tax consequences while restructuring debt, you should understand the various ways a debt instrument can be modified and the potential tax implications.

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VLOG - Tax Tips for Law Firm Partners

Posted on Mon, Jan 27, 2020

By: Irina Moyseyenko, CPA, MT

 

In our first vlog of 2020, Irina Moyseyenko, CPA, MT, gives three (3) important tax and cash-flow planning tips for newly dubbed law firm partners.  The way you are now paid is different and you need to plan accordingly. Click on the image to view. 

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What Pride Month Means to The Tax Warriors

Posted on Fri, Jun 07, 2019

By: Eric R. Elmore

 

When I was growing up in the 70s, there was a Sunday morning children’s program called “Wonderama.” Its closing theme song was “Kids are People, Too.” I’m proud to work for a firm that views and treats members of the LGBTQ community the same way…as people, like everyone else. 

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Advantages of Naming Spouse as Sole Beneficiary of IRAs

Posted on Tue, Nov 04, 2014

All named beneficiaries of a decedent's IRA can receive a distribution from the decedent's IRAs. However, a surviving spouse who is the designated sole beneficiary of the decedent's IRA has two unique options that are not available to other beneficiaries. The surviving spouse may: (1) roll over the decedent's IRA into an IRA established in the spouse's own name ("spousal rollover"), or (2) elect to treat the decedent's IRA as the surviving spouse's own IRA ("election").  The surviving spouse is treated as if she had funded the IRA with either of these options.

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We’re Happy Again! 2013 Tax Filing Season is Over! What's Next?

Posted on Wed, Oct 15, 2014

Today, October 15, 2014, marks the last day of the 2013 tax filing season.  Now, The Tax Warriors® can give our undivided attention to year-end planning for 2014 (though tax planning really is a year-round endeavor) and start to considering what we have to look forward to in 2015.

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Excluding Gains on the Sale of Your Principal Residence

Posted on Mon, Apr 07, 2014

If you have a smart phone, few daily tasks exist for which you cannot find an app to assist.  Tax laws operate much the same way. Just when you think you’ve found some innovative way to treat a transaction, you’ll often find that the Internal Revenue Code already has a law for that.  Take selling your home, for example.  Between searching for the perfect home, figuring out how you’re going to move all of your belongings, and eventually going through the process of selling your current home, no one wants to be bothered with the resulting tax ramifications.  Fortunately, a tax law eases the tax burden associated with selling your personal residence.

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What a Difference a Day Makes - Holding Period Rules for Preferential Capital Gains Treatment

Posted on Thu, Feb 27, 2014

One less day of ownership can be the difference between having your capital gain taxed at your regular tax rate (as high as 39.6%) instead of the preferential top tax rate of 20%.  Dependent upon your tax bracket, you may even be eligible for a preferential tax rate of 0% or 15%.  The tax term involved in determining which tax rates will apply is known as the holding period.  The holding period is defined as the minimum period of time you must hold a capital asset for gain to be favorably taxed as long-term capital gain.

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Booming Stock Market Puts Spotlight on Zeroed-Out GRATs

Posted on Mon, Jan 20, 2014

Grantor retained annuity trusts, or GRATs, have historically been used by wealthy individuals to save transfer tax (estate, gift, and inheritance tax). Sometimes, individuals have structured GRATs in such a way that substantial amounts of wealth can be transferred to family members at zero estate or gift tax cost. This may be especially true for those who have set up GRATs in the past few years and took advantage of the spectacular stock market returns in 2013. A provision in the President's Fiscal Year 2014 Budget would crack down on such zeroed-out GRATs and other perceived abuses in relation to GRATs. While this provision has been included each year in the President's annual tax

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Scoring with 10.5 Year-End Tax Planning Ideas for High-Income Individuals

Posted on Tue, Nov 19, 2013

Football and finance have many things in common; most notably four quarters of strategic planning.  But, in finance the fourth quarter is no time to throw a Hail Mary pass. A more controlled, disciplined two-minute drive is more of what is needed.  And, though you may not have Peyton Manning at the helm, you do have The Tax Warriors® at Drucker & Scaccetti to help you score.

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Retirement Plan Hardship Distributions for Hurricane Sandy Victims

Posted on Tue, Nov 20, 2012

The IRS recently released guidance that provides relief to taxpayers who have been adversely affected by Hurricane Sandy and have retirement assets in qualified employer plans they would like to use to alleviate those hardships.

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