Latest news with #taxcode
CBC
2 days ago
- Business
- CBC
Disability advocate wants taxes removed for virtual services
Abigail Murphy has been trying to update the tax code to help people with disabilities avoid paying taxes for virtual services. Currently, taxes are exempt on services accessed in person, but that doesn't apply to virtual services, which are often easier to access. Murphy's previous petition was dissolved before getting a chance to be heard. She spoke to CBC K-W's Aastha Shetty about the efforts to give the petition another go.
Yahoo
3 days ago
- Business
- Yahoo
5 Things the Wealthy Should Do To Prepare for Trump's Income Tax Plan
President Trump's 'One Big Beautiful Bill,' recently signed into law, overhauls the federal tax code and reshapes how high earners manage wealth, investments, and estate planning. Read More: Discover Next: 'At the end of the day, this kind of overhaul doesn't just impact income,' said Kevin Knull, a certified financial planner and CEO of TaxStatus. 'It affects legacy, liquidity and charitable goals. High-net-worth families are going to want to take a look at their financial picture in totality and consider how each piece of their plan interacts in a more integrated way.' Here are five things the wealthy should do to prepare for Trump's income tax plan. Max Out Retirement Contributions and Consider Roth Conversions The law extends key provisions of the Tax Cuts and Jobs Act into 2025 and beyond, preserving favorable tax brackets for now. That makes it an opportune time for wealthy individuals to reassess Roth conversions while higher-rate brackets are still in play. 'Some strategies to consider would be Roth conversions of pre-tax qualified retirement assets, taking additional distributions from their IRAs, and harvesting capital gains from their portfolio,' said Matt Mancini, Wilmington Trust Wealth Planning Team Leader. He added, 'However, wealthy taxpayers will need to remain aware of their income, as some important deductions could potentially phase out for them if they have too much income,' he said. 'Tax projections with their accountants will be vital in planning.' Optimize Business Structures for Flexibility The 'One Big Beautiful Bill' left pass-through taxation intact and expanded the state and local tax SALT deduction for businesses, making entity structure relevant again. Business owners should review their S-Corp or limited liability company (LLC) classifications to take advantage of evolving federal and state tax regulations. 'If income taxes drop, it may make sense to take more compensation as salary now, and later shift toward capital gains, dividends, or equity-based pay if those become more favorable,' said Elina Linderman, founder of La Rusa Financial. 'Business owners should also re-evaluate how they pay themselves — W-2 wages versus distributions versus retained earnings.' Update Estate and Trust Plans The new law raised the individual estate tax exemption to $15 million under the 2025 policy, creating a limited opportunity for wealth transfers free of federal estate tax. Families should act now to restructure or gift accordingly before future adjustments reverse these benefits. 'These changes could have sweeping implications for estate and philanthropic strategies,' Knull said. 'If the estate tax exemption is reduced as expected after 2025, wealthy individuals might consider making larger lifetime gifts earlier.' He added that trust structures, such as intentionally defective grantor trusts (IDGTs) or generation-skipping trusts (GSTs), could still be viable but would need to be carefully tailored to the new law. Find Out: Manage Capital Gains and Investment Timing While income tax has been reduced for many Americans, high earners are still subject to income taxes, though at lower rates. Capital gains taxes remain in effect, making it critical for wealthy investors to review how and when they realize investment returns. 'For those subject to income tax, strategies that involve deferring income are not going to be nearly as interesting,' said Ari Greenman, partner at Lenox Advisors. 'Most strategies around qualified plans, like 401(k)s, aim to lower taxable income today, deferring taxes into the future, and then taking income when you remove the assets later on.' Consider the Bigger Picture From charitable planning to liquidity and legacy, this tax overhaul touches every part of a high-net-worth financial strategy. 'The key is scenario planning: families should work with advisors to model a few credible legislative paths and build adaptable frameworks, especially when it comes to timing asset sales, option exercises, or distributions,' said Jean-Baptiste Wautier, private equity CIO and World Economic Forum speaker. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard How Much Money Is Needed To Be Considered Middle Class in Your State? Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck This article originally appeared on 5 Things the Wealthy Should Do To Prepare for Trump's Income Tax Plan Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Drive
3 days ago
- Automotive
- The Drive
Why the Mercedes-Benz G-Wagon is a Secret Tax Write-Off
The latest car news, reviews, and features. If the financial alphas of TikTok are to be believed, there's a secret loophole in US tax code that allows you to buy a Mercedes G-Wagon and deduct its cost from your taxes. They're not entirely wrong—let's dive into Section 179, hustle culture, and how the G-Class ended up becoming a status symbol in more ways than one. Really, it's 'G- Wagen ' as in Gelandewagen, which is pretty much just German for 'off-roader.' But colloquially, it's a 'Wagon' stateside. Not everybody driving around in a Merc G is committing tax fraud, but the vehicle's unique combination of specs and appeal does open the door for shady small-biz shenanigans. See, in late 2010, Congress passed the Small Business Jobs Act. It was designed to help small businesses recover from the financial crisis of 2008, and provided business owners with access to lending programs, increased limits on what they could borrow, and tax cuts on essential equipment. A part of that was what's known as Section 179. Section 179 of the IRS's Publication 946 deals specifically with large equipment needed for work. As our Editor-In-Chief, Kyle Cheromcha, breaks it down in the video above, for example, if a farmer needs a $50,000 tractor, but only puts $5,000 down and finances the rest, they can still write down the entire purchase on their taxes in the first year. The spirit of this is so companies can acquire expensive, unique equipment like construction vehicles or restaurant kitchen appliances. But it gets a little murky when it comes to road-going vehicles. A road vehicle can be eligible for this deduction if it's used at least 50% for business, and has a GVWR of between 6,000 and 14,000 pounds. When this rule was minted, that pretty much only included heavy-duty trucks, not luxury vehicles. But of course, the Mercedes G-Class is both. And now that more cars than ever are extremely heavy, and plenty of work trucks are loaded with luxury features, Section 179 is more susceptible to abuse than ever. Check out the video for the full breakdown of how we got here, and whether or not claiming a $150,000 luxury SUV on your taxes is a good idea. Have you seen our YouTube channel since we brought it back online last year? Check it out right now!
Forbes
21-07-2025
- Business
- Forbes
Keep What Matters, Transfer What Counts: A New Approach To Estate Planning
Starting in 2026, the federal estate tax exemption is expected to jump to $15 million per person (that's estimated to be $30 million for couples). It's a big opportunity for high-net-worth families to get ahead with their planning; however, many hesitate. And if that sounds like you, you're not alone. One of the most common concerns I hear in conversations with clients is this: "I don't want to give up control. Or access. Or income." Totally fair, but here's the good news, modern estate planning isn't about giving everything away. When done right, it's about protecting what you've built, while keeping the flexibility and control you care about most. Don't Let the Tax Tail Wag the Dog Whether you're updating existing plans or starting from scratch, remember taxes shouldn't be the sole driver. Given enough time, the tax code offers multiple ways to address wealth transfer efficiently. Instead, begin with this question I learned from fellow board member Eleanor Johnson: 'What do you want to be known for?' It's a powerful shift in perspective. Once you clarify your legacy goals, your estate plan becomes a vehicle to achieve them. That might look like: I was recently speaking to a room of about 300 people and asked, 'How many of you know someone who's paid estate tax?' Maybe 15 hands went up. Then I asked about lawsuits. Around 40% raised their hands. Divorce? Nearly 80%. The point is, estate taxes get a lot of attention but in reality, things like divorce, lawsuits, poor succession planning, or bad business decisions are far more likely to chip away at your wealth. A sound estate plan guards against these risks, too. Liquidity Is Often Overlooked Most of my clients' own businesses making up 50% to 90% of their net worth, with limited liquid assets. In these cases, the biggest threat isn't just tax, it's the lack of cash flow and asset diversification. What happens if a key owner dies prematurely? The family may lose not only income, but the value of the business itself while also facing an estate tax bill. Another challenge arises when dividing assets among children. Often, one child is involved in the business while others are not involved in it. Without liquidity, it becomes difficult to equalize inheritance fairly, a common source of family tension. Permanent life insurance can help:Even if no crisis occurs, life insurance can offer long-term flexibility and tax-free leverage. Please consult with your own personal tax attorney for tax counsel. Strategies That Preserve Control and Income Modern planning tools can provide opportunities which allow you to transfer wealth without losing control or income. Here are three common tools used, typically in combination, to achieve this goal:These strategies aren't about losing control; they're about repositioning assets for long-term efficiency while keeping your financial independence intact. The best plans start with a clear vision and are backed by solid data. Work with an advisor who can walk you through different planning structures and model the impact of each option, including:The Window Is Open but Could Close Yes, the 2026 law makes the $15 million exemption 'permanent,' but nothing in tax policy is truly permanent. Future administrations can reverse course. My colleague Michael Amoia coined the term 'Political Life Expectancy' — your life expectancy divided by four. Why? Because every four years brings the possibility of a new administration, and with it, a new tax code. If you're 60 today, you could see seven to eight major policy shifts before your estate is settled. That's why flexibility is the most important feature of any estate plan built today. Waiting could cost a significant amount of its assets, taxes and worse, if your estate lacks liquidity, your family might be forced to: And don't forget: your assets are likely to grow over the next decade. Transferring them now, while they're still appreciating, creates the opportunity for major tax savings. What Should You Do Now? In today's climate, a smart estate plan should: You don't need to give it all away. You just need to act while you still have control, clarity, and leverage to choose how and when to use your resources.
Washington Post
21-07-2025
- Politics
- Washington Post
Republicans said they would cut waste. Instead, they rewarded it.
Amy Klobuchar, a Democrat, is a U.S. senator from Minnesota. No one can doubt that the federal government needs reform. From our national debt to our tax code, major issues require serious solutions. In addition to taking on tax fairness and income inequality, that list includes addressing government inefficiencies and waste.
