Wealth Strategies Journal

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Author: myuan (page 1 of 2)

IRS Denies Extension for Carryover Basis Election

The executor of an estate meant to file a timely Form 8939 for a Section 1022 election (which would allow the estate to elect out of the federal estate tax, thereby not needing to file a Form 706 return).  However, the IRS never received the Form 8939, and therefore requested … Continue reading

Taking Control of Your Inbox

Joanna Stern writes for the Wall Street Journal on her process for dealing with the growing onslaught of marketing emails that plague our inboxes each day.  After trying conventional methods such as mass deleting, unsubscribing, or compartmentalizing emails by using filters provided by Microsoft and Google email services, third-party alternatives … Continue reading

Cautionary Tales for POAs

Although powers of attorney (POAs) are an incredibly popular option for many people planning for the twilight years of their lives, the New York Times reports that in many cases POAs do not provide the best solution, partly because of their ubiquity.  Legal professionals have stated it is not at … Continue reading

The Investment Advice Price Wars

Although many who seek investment advice and wealth management services may be tempted to steer their funds towards big names, traditionally associated as discount brokerages, fees offered by firms like Fidelity, BlackRock, and Merrill Lynch are increasingly viewed as incongruous, particularly given the amount of service provided, especially for smaller … Continue reading

Article: Digital Estate Planning

Below is an abstract of Kathleen Farro’s recent article entitled, “The ‘Digital First Sale Doctrine:’ A Necessary Piece of the Digital Estate Planning Puzzle:”

As technology advances, the aspects of our lives that are played out in the digital realm, both personal and professional, are ever-increasing. We conduct our banking

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Ten Fun FATCA Facts

As the Foreign Account Tax Compliance Act (FATCA) is finally coming into full effect, the implications for Americans, and to a much greater extent, for the rest of the world, are vast.  Its reach, which requires foreign banks to identify Americans with accounts holding over $50,000 (or face being frozen … Continue reading

Expansion Opportunity for CPAs

A recent survey showed that many accountants may be able to expand their services to small business clients by including financial planning and forecasting service.  Although traditional accounting services (bookkeeping and tax preparation) involve managing the same data that drives active planning and performance management, only one in three accountants … Continue reading

Avoiding Accidental Inheritance by Minors

Though courts can fix accidental designations of minors as recipients of inherited property, the solutions involve added complications (e.g., appointing a guardian or delaying property distribution), and there are number of steps testators can take to avoid such messes altogether.  For example:

  1. Include in the will that the executor
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Updated Report on Taxation of SSA Benefits

In 1983, Congress approved recommendations to tax the benefits of some higher-income Social Security beneficiaries.  Since 1984, up to 50% of SSA and Railroad Retirement Tier 1 benefits were taxable for those whose provisional income (AGI plus other tax-exempt income, including half of SSA and Railroad Retirement Tier 1 benefits) … Continue reading

IRS on Gift Tax Issues for Trust with Distribution Committee

In a recent letter ruling, the IRS addressed an inquiry regarding a grantor who wished to create an irrevocable trust to benefit himself, his issue, his children’s issue, and four individuals.  The trustee was to be an in-state trust company, and during the grantor’s lifetime, the beneficiaries would be grantor … Continue reading

IRS Ruling: Foundation Subpart F Income Is Not Subject to UBIT

In a recent letter ruling, the IRS addressed the inquiry of a 501(c)(3) organization. also classified as a private, non-operating foundation under 509(a), that intended to form a corporation in a foreign country to manage foreign investments, including distressed-debt investing.  This action was contemplated as a means of better managing … Continue reading

IRS Ruling Permits Tax-Free Transfer of Decedent’s IRA into Widow’s

In a recent letter ruling, the IRS responded to an inquiry from a taxpayer whose spouse had died and designated the a trust (established by the taxpayer) as the beneficiary of his IRA account.  The initial trustees were the taxpayer and her decedent spouse, and the trust terms provided that … Continue reading

Child Credit Proposals By State

House Republicans recently proposed allowing the expiration of the child tax credit for low income working families after 2017, and utilizing the freed funding towards bigger child tax credits for better off families.  In contrast, Obama proposed to make the expansion for low-income working families permanent.  Both are estimated to … Continue reading

IRS Proposes Reguliations on Accounting for Money Market Funds

The IRS has issued proposed regulations providing a simplified method of accounting for gains and losses on shares in money market funds (MMFs) that distribute, redeem, and repurchase their shares at prices reflecting market-based valuation of their portfolio.  The proposed regulations also provide guidance on information reporting requirements for shares … Continue reading

IRS Memo: Application of 469(c)(7)(B) Qualifying Taxpayer Rules

In a recent IRS memo, the Office of the Chief Counsel responded to a question asking whether qualification tests under Section 469(c)(7)(B) apply separately to each of a taxpayer’s interests in rental real estate when he/she does not elect to treat al such interests as a single rental real estate … Continue reading

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