Tax Warrior Chronicles

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. 

 

Before the fall of the Defense of Marriage Act (DOMA) in 2013, from a tax perspective, members of the LGBTQ community had many reasons to feel left out of main stream America. The federal government (and most states) did not recognize their marriages or in many instances, even allow them to marry.  If a same-sex couple was married, they could not file taxes as a married couple. They had to

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Matrimonial Forensics Accountant Joins D&S

Posted on Mon, Jun 25, 2018

By:  Drucker & Scaccetti

 

PHILADELPHIA – Drucker & Scaccetti, the region’s premier tax planning and consulting firm, is pleased to announce that Donna M. Pironti, CPA, MSA, CFF, has joined its team as a Principal focusing on forensic accounting, matrimonial litigation support, and tax consulting and compliance.

 

"I am very excited to be developing the forensic matrimonial litigation support practice at D&S,” says Pironti. “The talented and unique D&S team will support me in providing the expertise that divorcing clients need.  In addition, at D&S I will able to continue to maintain a thorough knowledge of current tax law, which is important during divorce negotiations."

 

Prior to

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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.

 

Advantages of the Spousal Options

There are three major advantages to making the spousal rollover or election:

 

(1)   Required

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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.

 

Most deductions and exemptions are adjusted annually for cost of living, based on the prior- year’s average Consumer Price Index.  A few of these items are listed below, but be aware that the IRS is not required to officially release the 2015 adjustments until December 15, 2014, so the information provided is subject to adjustment. 

 
 
 
 

Tax brackets will be adjusted and itemized deductions will continue

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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.

 

The IRS provides an exclusion that

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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.

 

Below is an introduction to some of the more common holding period rules that apply to capital assets.  Hopefully this tutorial will help you avoid making a tax mistake

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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.

 

Ever since the “fiscal cliff” talks emerged in 2012, we have been hit with a bevy of new taxes in 2013.  However, there are opportunities among the tax increases and new taxes to score by reducing your overall tax bill.

 

Year-end tax planning could be especially productive this year because timely action could nail

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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.

 

401(k), 403(b) and 457(b) plan participants may be eligible to take advantage of these streamlined loan procedures and liberalized hardship distribution rules. IRA participants are barred from taking out loans; however, they may be eligible to receive distributions under the liberalized procedures.

 

Retirement plans can provide this relief to employees and certain members of their families (son, daughter, parent, grandparent or other dependent) who live or work

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