When it comes to compensation for highly paid employees, various tax-deferral strategies can offer significant savings over the long run. In the process, nest eggs can accumulate more meaningfully without being reduced by taxes, and sponsoring companies can also receive important benefits along the way. While typical retirement plans exist to help all employees, their … Continued
Executives who previously determined that private jet ownership was unaffordable may now be able to justify this purchase thanks to the Tax Cuts and Jobs Act (TCJA) signed into law in December 2017. Among other things, like more generous expensing provisions in general (see our 2018 Tax Code Review), the new tax law now allows … Continued
The new tax law that went into effect this year changes many things, including the treatment of deductibility of state and local (property) taxes – the so-called SALT deductions. Prior to this year, taxpayers could deduct the full amount of these taxes from their Federal tax calculation. Beginning this year, that deductibility is capped at … Continued
Welcome to California, such a lovely place … you can check out any time you like, but you can never leave. Despite its natural beauty, mild climate, and other attractive attributes, some people — who once made California their home — eventually choose to leave it. Many others try to avoid establishing California residency in … Continued
For entrepreneurs and major stakeholders of Silicon Valley companies, a liquidity event puts in motion a series of complex and timely actions that investors must navigate, including potentially large tax bills to manage. For the philanthropically minded, one related tax-saving strategy worth exploring is the funding of a charitable vehicle. There are a handful of … Continued
Like any classic “Spaghetti Western”, the recent major tax law has some “good” elements with regards to residential real estate, some “bad” outcomes, and some “ugly” aspects, too … with the “u” in ugly standing for unclear, unknown, and unresolved. These various factors are laid out below. But the main overriding feature of the law … Continued
Silicon Valley is home to countless entrepreneurs who have created significant wealth, all concentrated in a single stock with very low cost basis. These positions can be quite volatile and often do not generate much income, if at all. Also, by selling the shares, the individual is faced with what can be sizeable capital gains … Continued
For starters, the new tax law changes marginal rates and income brackets. One of the most significant aspects of the Tax Cuts and Jobs Act is the change in the federal income tax brackets. While the number of brackets remains the same at seven, the top rate now tops out at 37% instead of 39.6% … Continued
Millions of Americans will be impacted by the expansion of the standard deduction and repeal of their personal exemption. With the passage of the Tax Cuts and Jobs Act, the standard deduction for single filers increases to $12,000 and to $24,000 for married couples filing jointly. Anyone age 65 and older in 2018 will continue … Continued
In a move that eases the pain of the repeal of the personal exemption, the child credit has doubled and is available to more families. If you are a parent of children under the age of 17, the expansion of the child tax credit from $1,000 to $2,000 per child could provide valuable tax savings, … Continued