Many people think of life insurance as a product for family protection. The life of one or two breadwinners is insured; in case of an untimely death, the insurance payout can help with raising children and maintaining the current lifestyle.
Taxpayers who itemize deductions on Schedule A of their tax return have in the past been able to deduct outlays for state and local income tax as well as property tax with no upper limit. (State and local sales tax may be deducted instead of income tax.) However, as of 2018, the Tax Cuts and Jobs Act of 2017 provides that no more than $10,000 of these state and local tax (SALT) expenses can be deducted on single or joint tax returns ($5,000 for married individuals filing separately).
Much of the news relating to The Tax Cuts and Jobs Act (TCJA) is about domestic tax activities, such as limitations on state and local taxes, Sec 199 deduction and individual and corporate rates. However, little has been provided a little known but very critical parts in the international area. If you have a foreignRead more about The Verdict May Be In – GILTI[…]
You probably know the G.I. Bill as a program designed to help military veterans receive college educations after they left the armed forces following World War II. What you may not know is that the G.I. Bill has endured, in various forms, until present times.
In fact, just last year the Harry W. Colmery Veterans Education Assistance Act of 2017 became law and modified the G.I. Bill. This latest version is sometimes called the “Forever G.I. Bill” because it removes time limits on receiving benefits for military personnel. It also authorizes the transfer of education benefits to spouses and children.
For many years, 529 college savings plans have offered a tax-favored way to save for higher education. These plans, officially called “qualified tuition programs,” take their nickname from the section of the Internal Revenue Code that authorizes them.
In the last several months much has been written about the implications of the Tax Cuts and Jobs Act (TCJA). For owners of flowthrough entities (including sole proprietorships, partnerships, and S corporations) and indivduals, most of the commentary has focused on the new 20% deduction available for qualified business income (Sec. 199A). Of course, theRead more about US Tax Reform – The New GILTI Tax Regime[…]
Properties and homes that are only used for the enjoyment of the owners and guests that are not held out as a rental property may be subject to an additional tax on the value of the property – Impuestos de Lujo or luxury tax. The luxury tax is based on the declared value of theRead more about Tax Compliance on Luxury Taxes[…]
In Costa Rica, residential rental activity is subject to taxation. Depending on the nature of the rental, it may be subject to sales tax, income tax or both. All short-term rentals are subject to sales and income taxes, The definition of a short-term rental is still a bit unclear from an amount of time orRead more about Tax Compliance on Costa Rican Rentals[…]
The federal estate tax exemption now exceeds $11 million per person. Accordingly, few individuals or married couples will owe this tax. Nevertheless, there is more to successful wealth transfer than reducing or eliminating estate tax. Ideally, you’ll want your assets to pass to the desired recipients with a minimum of turmoil and expense.
The Tax Cuts and Jobs Act of 2017 increased the federal estate tax exemption to $11.18 million for 2018. That’s per person, so the combined exemption for a married couple can be as much as $22,360,000 worth of assets this year.