Latest news with #taxplanning
Forbes
9 hours ago
- Business
- Forbes
Navigating The Evolving Collectibles Market: Strategic Tax Planning For Artists And Collectors
The latest edition of the Significant Investor Newsletter examines the shifting dynamics in the fine art and collectibles markets in 2025. For estate planners, the intersection of these market changes with upcoming tax law revisions presents both opportunities and challenges for collectors and creators. Over the past five years, alternative assets have exhibited varied growth patterns. With the anticipated expiration of the Tax Cuts and Jobs Act (TCJA) provisions in 2026, proactive planning is essential to mitigate estate and income tax exposure. Market Trends Shaping Investment Strategies Tax Implications of the TCJA Sunset and Legislative Changes Actionable Planning Strategies Conclusion: Balancing Passion and Prudence The evolution of the collectibles market demands adaptive strategies that combine market awareness with tax efficiency. For artists and collectors, the window to act before 2026 is closing—strategic gifting, entity structuring, and diversification, are crucial for preserving wealth across generations. As digital platforms democratize access and legislative landscapes shift, collaboration with fiduciaries skilled in both tangible assets and tax code complexities becomes indispensable.
Daily Mail
30-05-2025
- Business
- Daily Mail
I have £20,000 in shares from an old employer, can I cut my capital gains tax bill?
I have £20,000 worth of shares held outside of an Isa from an old employer's share save and employee share schemes dating back to when I worked there between 2008 and 2014. I would like to sell the shares and reinvest the money into more diversified investments but think I will end up with a big tax bill, even though I am a basic rate taxpayer. I have been reinvesting dividends and buying more shares regularly throughout the ownership. What do I use as the purchase price for capital gains tax – each individual share price or an average? And is there any way that I can cut my tax bill if I sell? The shares are held as certificates, if I keep hold of them, can I move them into an investment account? Rob Morgan, chief analyst at Charles Stanley Direct, replies: Gains on shares purchased at various points through additions such as reinvesting dividends can appear be something of a tax headache. However, if you have kept good records the calculations in most circumstances aren't too bad. Capital gains tax rules First the basics. Capital gains tax (CGT) is a tax on any profits made on investments, and as you are aware you will be potentially liable on the sale of shares held outside a tax-efficient account such as an Isa. The amount of tax you're charged depends on which income tax band you fall into. For the 2025/26 tax year, rates of CGT are 18 per cent and 24 per cent for basic and higher rate taxpayers respectively. This rate applies to the profit made – so sale proceeds minus the cost of purchase. > What is capital gains tax? Read Charles Stanley Direct's guide Not widely understood is the interaction of CGT with income tax bands. If you're a basic rate taxpayer, any gain taken when added to your income could push you into the higher-rate bracket. If so, you'd pay 24 per cent on however much of the gain falls into the higher income tax band when added to your income, and 18 per cent on the portion below it. If you are a Scottish taxpayer your CGT rate depends on the rest of UK income tax bands and not the Scottish tax bands. You'll only need to pay tax if your realised profits in a tax year exceed the annual capital gains tax allowance. In the 2025/26 tax year, this is £3,000. For example: If you bought shares for £10,000 and sell them this tax year for £30,000, then you've made a capital gain of £20,000. If you have no other gains, this is reduced to £17,000 as the first £3,000 falls into the CGT annual exemption. For a basic rate taxpayer (with income and gains falling below the higher rate tax band) the tax liability is £17,000 x 0.18 = £3,060 However, if the gain tips you into the income tax higher rate band then you pay the higher rate of CGT on the portion over the threshold of £50,270. For this reason, many basic rate taxpayers can end up paying mostly higher rate CGT on large gains. Calculating CGT from multiple purchases Calculating the gain on shares and the tax to pay is reasonably straightforward if you have the figures to hand. In most circumstances you just need to know the number of shares and the total amount paid for them by adding up all the purchase transactions. You then net the total cost of the sale proceeds (after any fees such as stockbroking commission) to calculate the gain. When making multiple sales the purchase cost simply applies on a 'pro rata' basis to each sale. The main exception to this 'pooling' rule is the 'same day' rule whereby shares acquired on the same day as the disposal are taken account of ahead of any others. There is also the 'bed and breakfasting' or '30 day' rule whereby any shares repurchased within 30 days cancel out the gain or loss generated by the prior sale – but not if repurchased in an Isa. However, it appears neither of these apply in your circumstances. As with many tax matters, there are examples and help sheets on the HMRC website that can help, but as with any tax issue if you are in any doubt you should consult a qualified tax specialist. Ways to minimise CGT To mitigate CGT there are some strategies you can adopt. If the capital gain, and therefore the potential tax liability, is significant you can consider taking advantage of the CGT allowance over multiple tax years. The allowance has been much diminished and now stands at just £3,000, but selling an asset in bits over time can help minimise CGT. You can't do that with a second property or an antique of course, but you can with shares and funds. If you are planning to keep some or all your holding you can consider using the £20,000 Isa allowance to at least protect it from tax going forward – both in terms of income tax on dividends and any future gains. The process here is known as a 'Bed & Isa' which can help use your CGT and Isa allowances simultaneously. A Bed & Isa involves selling holdings and then buying them back in an Isa account. The sale part generates a capital gain, so selling or partially selling an existing investment could help with tax planning by using some of your capital gains allowance while keeping your holding. > Bed & Isa and other Isa rules to make your life easier: Charles Stanley's guide Outside of an Isa or pension you are prevented from generating gains in this way owing to the 'bed and breakfasting' rule mentioned above. This highlights that prevention is often easier than cure when it comes to CGT. Buying shares in an Isa, or transferring them in at the earliest opportunity, is often the best way to avoid storing up problems further down the line. One valuable tactic that many people miss is the special rules around transferring eligible shares from a save as you earn (SAYE) or share incentive plan (SIP) scheme tax free into an Isa within 90 days of acquisition. Potentially, it's a great way to use your Isa allowance and shelter up to £20,000 of a holding from tax. Another strategy to reduce CGT involves transferring some of the asset to a partner if you are married or in a civil partnership. You usually don't pay capital gains tax on an asset you give or sell to your husband, wife or civil partner, and this could give you the option of using two CGT allowances each tax year. A couple, for instance, could realise gains of up to £6,000 this tax year without paying tax. You could also consider dividing the shareholding in such a way to take advantage of lower tax bands where one partner's income is lower. This way there may be less tax to pay on the gain as more of it falls into the basic rate band than the higher rate band for one of the pair. Finally, if you have any losses on investments elsewhere you may have opportunity to set these off against gains. If you sell an asset for less than you paid for, you can report that loss to HMRC to offset against any gains you've made in the same tax year. You have up to four years from the end of the tax year in which the loss occurred to make a claim. This can reduce your overall taxable gain and in some circumstances bring it below the annual CGT allowance. Keeping the shares It can be difficult to know whether to sell a shareholding with a tax liability attached to it. Much depends on the outlook and reliability of the company in question and the level of risk the holder is happy with. The rule of thumb is that the tax tail shouldn't wag the investment dog, and in the case of a large single stock position it can be wise to diversify to limit the impact if it falls in value. That's especially the case if a drop could have a big impact on your financial resilience. Having your financial future heavily influenced by one business is a risk most people wouldn't be willing to take – unless they are inexorably attached to it through ownership or otherwise have significant confidence in the prospects. A diversified approach won't guarantee a better result, but it's far less risky. Ideally, a careful strategy around sales can help minimise the tax burden and smooth the path towards that. We have only seen the tax burden ratchet over time, and it seems a forlorn hope that it might reverse direction, at least in the near term, so from that perspective there may be nothing to be gained by putting off the issue. However, if you decide to keep your shares, contact your stockbroker or investment platform to see if they can help with 'dematerialising' them. In other words, converting them from a physical certificate into electronic form. This will make things easier to manage going forward if you want to keep them. It will also mean future sales are easier to execute and will cost less as brokers generally charge a lot more for a certificated sale. You'll have to fill in some paperwork to do this and wait a short period for the process to complete. For instance, at Charles Stanley once the original share certificates and signed transfer forms are received we would expect the holdings to be deposited in an online account within 5 to 10 business days under normal circumstances.
Yahoo
29-05-2025
- Business
- Yahoo
BORISMTAX Announces Expansion into 35+ States, Providing Strategic Tax Planning Services for Entrepreneurs
BORISMTAX expands its tax planning services, helping entrepreneurs across 35+ states reduce their tax burden with year-round proactive strategies. New York, New York--(Newsfile Corp. - May 29, 2025) - BORISMTAX, Inc., a leading tax advisory and planning firm, is proud to announce its continued expansion, providing expert tax strategy services to entrepreneurs and business owners in over 35 states. The firm, founded by Boris Musheyev, CPA, specializes in proactive tax planning designed to help businesses minimize their tax liabilities and optimize their financial health. BORISMTAX Announces Expansion into 35+ States, Providing Strategic Tax Planning Services for Entrepreneurs To view an enhanced version of this graphic, please visit: Expanding Reach to Support More Entrepreneurs Nationwide As part of its mission to provide continuous tax planning support, BORISMTAX is now serving entrepreneurs in more than 35 states, offering tailored solutions that go beyond traditional tax preparation. This expansion allows the firm to further its goal of ensuring business owners understand the tax-saving opportunities available to them year-round."We're excited to extend our services to a broader range of entrepreneurs across the country," said Boris Musheyev, CPA, Founder of BORISMTAX. "Our personalized approach to tax strategy means business owners aren't just getting their taxes filed-they're getting the guidance they need to make informed decisions that minimize their tax burdens and help them reinvest in their businesses." A Proactive Approach to Tax Planning Unlike many accounting firms that focus solely on tax season, BORISMTAX provides year-round tax strategy consultations, ensuring that clients are continually optimizing their tax positions. By working closely with business owners to understand their unique needs and challenges, the firm helps them leverage the tax code effectively."Many business owners unknowingly overpay on taxes simply because they aren't utilizing all the strategies available to them," Boris explained. "Our goal is to be a long-term partner for our clients, ensuring they consistently save on taxes while staying compliant with IRS regulations." Award Recognition for Excellence in Tax Planning In recognition of its outstanding commitment to tax planning and client success, BORISMTAX has recently received an industry award for excellence in proactive tax strategy. The award highlights the firm's dedication to providing personalized, effective tax-saving solutions for entrepreneurs and businesses, helping them optimize their financial outcomes."We're honored to receive this award, which reflects the hard work and dedication of our team," Boris said. "This recognition fuels our passion to continue offering the best possible service to our clients and expand our reach to even more business owners." Proven Success and Continued Growth Since its inception, BORISMTAX has been recognized for its commitment to proactive tax planning. The firm's impressive growth has made it one of the leading tax advisory firms in the country, and it continues to expand its reach as more business owners turn to BORISMTAX for expert guidance."We are proud to help business owners take control of their tax situation," Boris added. "Our clients don't just file their taxes-they make informed decisions year-round that optimize their financial future." About BORISMTAX, Inc. Founded by Boris Musheyev, CPA, BORISMTAX, Inc. is a tax advisory and planning firm based in New York City. The firm specializes in providing proactive tax strategies and advice to entrepreneurs and business owners in over 35 states. By focusing on personalized tax plans, BORISMTAX helps clients reduce their tax burdens and understand how to best leverage the tax code to retain more of their earnings. The company is recognized for its commitment to education and client service, offering a tailored approach that ensures clients can successfully navigate the complexities of tax laws. Media Contact Boris Musheyev, CPABORISMTAX, Inc. Email: Phone: (212) 430-6881 Schedule a Tax Strategy Session: Website: YouTube: BORISMTAX YouTube Google Reviews To view the source version of this press release, please visit Sign in to access your portfolio
Khaleej Times
28-05-2025
- Business
- Khaleej Times
UAE family businesses urged to prioritise tax planning amid corporate tax rollout
Family businesses in the UAE must urgently adopt robust tax planning strategies and ensure full documentation to stay compliant under the country's evolving corporate tax regime, said Shiraz Khan, Partner and Head of Taxation at Al Tamimi & Company. Speaking at the sixth edition of the New Age Finance and Accounting (NAFA) Summit organised by Khaleej Times, Khan emphasised that accurate and complete tax returns, backed by supporting documents, are critical in the face of future audits by UAE tax authorities. 'You need to have contracts and invoices to support deductible expenses,' he said. 'If you can't prove them, you may lose your right to claim them —even if they are legally deductible.' He outlined that businesses are now required to retain tax records for seven years, which is a departure from VAT rules. Companies must also maintain documentation for foreign tax credits, withholding tax certificates, and group loss offsets, which allow up to 75 percent loss relief across group entities. It was in 2023 that the UAE's Federal Tax Authority (FTA) rolled out a 9 percent corporate tax. Holding structure Khan highlighted that family businesses should assess whether to set up holding structures, particularly in UAE free zones, to benefit from zero percent tax rates, provided they meet criteria around qualifying income, substance requirements, and transfer pricing compliance. 'Transfer pricing rules are now fully in effect, and related party transactions must be disclosed and benchmarked using approved methods,' he said, adding that arm's length pricing and functional analysis will be essential. He also advised considering tax grouping, which enables consolidated filings and eases intra-group compliance, and reviewing double tax treaties — with over 100 countries — to reduce exposure to withholding taxes and permanent establishment risks. Internal tax policies Khan cautioned that non-compliance could result in severe financial penalties, reputational damage, and regulatory setbacks. He urged family-owned companies to formalise internal tax policies, create a dedicated tax function, and proactively manage tax risks. 'Tax is now a material cost that could impact business continuity. Every family business must understand the new rules, adapt, and structure operations efficiently, especially with more mergers and acquisitions activity and generational transitions happening,' he said. Khan also pointed to time-bound opportunities such as small business relief for firms with revenues under Dh3 million, valid until the end of 2026, and exemptions for foreign permanent establishments — but noted these must be applied for in advance. Above all, he stressed the importance of clear documentation. 'You must be able to justify every position in your tax return. If there is uncertainty, get a legal or tax opinion — and always keep records ready,' he concluded.
Yahoo
22-05-2025
- Business
- Yahoo
4 cases when a Roth conversion won't pay off for you
If you're eager to jump on the Roth bandwagon, it may be frustrating to go through the process and find roadblocks. But sometimes, you run the math and it just doesn't make sense for you. Roth IRA conversions are not a good idea for everyone. They work in certain circumstances where the tax arbitrage comes out in favor of paying the tax now rather than paying it later. It's not simple math, and it involves a lot of guesswork about the future, plus it requires a lot of cash on hand. And the transactions can be tricky — paperwork and strict timetables are involved. My ex-wife said she should have been compensated for working part time during our marriage. Do I owe her? Morgan Stanley turns bullish on U.S. stocks. Here's why it says the market lows have already been made. After 25 years, I finally asked for separate checks — and my friends iced me out. Did I do something terrible? This chart shows why investors should be worried about the latest bond-market selloff My husband used my money to renovate his house. Will I now get half of his property in a divorce? 'It's like French cooking,' financial planner Thomas Duffy said. 'There are so many difficult techniques to master.' MarketWatch spoke with Duffy, who is based in New Jersey, as he was preparing for a call about Roth conversions with a client for whom there were a slew of considerations. The client is 68 and just retired. He wants to continue working part-time and start collecting Social Security. His spouse is still working. Duffy wanted to convince him to wait two more years, until he turns 70, to claim Social Security, and in the meantime to convert some significant IRA money to a Roth using a stash of $200,000 in cash to cover the tax bills. 'I will tell him that his tax bill for this year will be close to the 12% bracket, but once his spouse retires and they start taking required minimum distributions, they'll be at least in the 24% bracket,' Duffy said. Doing Roth conversions for a few years now could save that couple 2% on their taxes in later years. But Duffy has other clients for whom the math doesn't make sense. And whenever I write an article about Roth conversions — which entail taking money out of a tax-deferred account like a 401(k) or IRA, paying the tax on the income and then moving the money to a Roth account — I get lots of letters from people outlining their circumstances and then asking why the conversion won't work out for them, or why their adviser is telling them not to do it. Here are four cases where readers ran into obstacles to making the Roth conversion strategy work for them. Reader No. 1 wrote: 'I'm 66 and hope to work another year or two. I currently have a rollover IRA of $725,000 managed by an adviser and another $250,000 rollover IRA that I manage. I also opened a Roth IRA three years ago and have approximately $25,000 in it via direct contributions and no rollovers. I have approximately $50,000 in money-market accounts and $40,000 in gold and silver coins. I am trying to determine the best solution for rolling over money from my IRAs to my Roth account over the coming years.' The case against a Roth: This person, who is 66 and has about $1 million saved, doesn't appear to have enough cash on hand to make it worthwhile to do a Roth conversion. They would need cash to pay the extra tax. If they take that payment out of the conversion itself, they'd miss out on part of the value, in that they would be converting $80 out of $100 instead of the whole $100. They could just leave the money in the IRA universe and pay the tax as money is disbursed each year, or they could wait until they have greater cash savings. The other reason to stall on a Roth conversion is that Reader No. 1 is still working and is probably in a relatively high tax bracket. Ideally, you do Roth conversions after you retire, when your income is lower, and pay at the lowest tax bracket you can. Reader No. 2 wrote: 'I recently turned 68 and want to retire next year at 69. I expect to have roughly $1.2 million in my Employee Stock Ownership Plan account, which will need to be transferred into a standard 401(k) upon my separation from the company. I also have a state employee pension of roughly $100,000 per year, gross. What I am trying to understand is how to utilize a Roth conversion for the 401(k). I have a significant mortgage, as my wife and I executed on our dream of living in California wine country. Other than that, I have no debt and apparently now qualify for full Social Security benefits due to the recent change in the law. Does a Roth conversion strategy apply, and can it help me?' The case against a Roth: Like Reader No. 1, this reader has a lot saved, is still working and is in a high tax bracket. They are a few years older, so they have even less time to take advantage of conversions before they start having to take required minimum distributions. Plus, once they retire, they will be on Medicare, and their income will likely be high enough to cancel out any tax savings they'd get from doing conversions. You want to make the most use you can of the years before age 63 to avoid those IRMAA surcharges. Reader No. 3 wrote: 'I have about $300,000 in an IRA. I'm 79 years old and want to pay the least tax possible. I am currently taking my RMDs but want to convert to a Roth IRA and give some money to my college-bound granddaughter. Does a school savings account qualify as a qualified charitable distribution?' The case against a Roth: There's a strategy where you can use direct charitable contributions to offset your RMDs and thereby maximize the tax efficiency of a Roth conversion. However, the account balance for this grandparent is probably not enough to worry about doing a Roth conversion, and giving money to their granddaughter for school won't count as a charitable contribution for the purposes of their RMD. The only way that contributing to a 529 would help this reader with their taxes is if their state gives a deduction for it, or if they have an estate over $13.99 million and need to give away some money to avoid estate taxes. With $300,000 in their IRA, this reader's required minimum distribution is around $14,000. That's not likely to affect their income-tax bracket very much, but that would depend on their other holdings. They may be better off leaving that money in the IRA and having it available to pay for long-term-care costs, should those be needed. Reader No. 4 wrote: 'I'm 53 with almost $2 million combined in my 401(k) and Roth IRA. Should I consider a Roth conversion anytime soon?' The case against a Roth: The answer to this really depends on the ratio of what's in the 401(k) and the Roth. I'm going to assume that it's at least an even split, which means this reader has $1 million at a young age in a tax-deferred account, which could grow to more than $4 million by the time they reach 75, the age they would need to start taking RMDs under current regulations. That's going to mean a huge RMD, and they might want to do something about that now. But if they're still working and they've saved that much already, they're likely already in the 32% or 37% tax bracket. If that's the case, they might want to wait until they stop working and their tax rate goes down to 12% or 22%. That said, sometimes people expect their tax rates to drop in retirement and they never do. If that is the case, they'll have to decide when they want to pay the tax on their savings, which could either be a phased conversion strategy, a giving strategy or doing nothing at all and just paying as they go. One thing this reader can do in the meantime is stop contributing to tax-deferred accounts and switch to a Roth 401(k). With that, they'll pay their working tax rate as they go but won't run into bigger problems down the road with conversions. Got a question about investing, how it fits into your overall financial plan and what strategies can help you make the most out of your money? You can write to me at . Please put 'Fix My Portfolio' in the subject line. You can also join the Retirement conversation in our . 30-year Treasury yield is above 5% again — that's usually a bad sign for stocks Bond 'vigilantes' are sending warnings globally. What does that mean for your portfolio? Surge in Treasury yields points to U.S. debt concerns as Trump's tax bill advances. Investors want this fix. My husband and I spend more money on our daughter and her family than on my single son. Do we compensate him? My father's widow keeps sending me $200 checks in the mail. Why would she do this?
