Yes—You Might Owe More Taxes Under President Biden. Here’s How to Avoid It

Use a spousal limited access trust (or SLAT) Of all of the proposed changes, the most significant is the reduction of the estate and gift tax exemption from $11 million to $5 million. This decrease can be avoided by transferring wealth now. One option is the spousal limited access trust (or SLAT). To use a SLAT, one or both spouses creates a trust for the benefit of the other spouse. Because the trust is funded by gift while both spouses … Continued

After The Georgia Runoff What Tax Planning Should You Do NOW?

With the results of the Georgia runoff election in the Democrats Control the House, the Senate and the White House. So, the potential for harsh tax legislation increasing taxation of the wealthy, along the lines of prior Democratic proposals, might be likely to happen. What might those changes be? When might they be effective? What planning might you want to do now?

Taxpayers must pay no more than the correct amount of tax | Internal Revenue Service

  A taxpayer may owe money when they complete and file their tax return. They have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly. This is one of ten rights known collectively as the Taxpayer Bill of Rights. This right to pay no more than the correct amount of tax means taxpayers can: File for a refund if they believe they overpaid. Write … Continued

Economic impact payments: What you need to know Check for the latest information: No action needed by most people at this time

The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment. Who is eligible for the economic impact payment?Tax filers with adjusted gross income up to $75,000 for individuals and up to … Continued

Dueling economists debate how much a wealth tax would raise

  The wealth tax proposed by Sen. Elizabeth Warren has sparked a fierce — and increasingly personal — debate between the party’s traditional academic elite and the darlings of the new left. Lawrence Summers, former Treasury Secretary and longtime economic guru of the Democratic Party, published an op-ed in The Washington Post in April saying the revenue estimates from Warren and her economic advisors were overly optimistic. Dueling economists debate how much a wealth tax would raise