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Think Charitably for Family and Charities … Sooner Rather Than Later

KPMG sees 2022 as being bigger than the banner year of 2021 for mergers and acquisitions. The easy access to capital, lower interest rates and a recovering global economy should send deal-makers looking for lucrative targets.1 This current economic environment makes Chief Counsel Advice 202152018 very timely. It addresses whether a pending merger should be …Read More

Getting Ready for 2022 – The Power of “No” and “One”

The power of “no” As December draws to a close, we know with certainty the Build Back Better (BBB) legislation will not be enacted in 2021. Senator Manchin’s recent “This is a no” comment suggests the likelihood of dramatic changes to the income and transfer tax for 2022 are also remote. While 2021 saw advisors …Read More

It Ain’t Over ‘Til It’s Over: Tax Law Update 12/08/17

We are well into December, Christmas and New Year’s are just around the corner, and we still don’t know if a major tax overhaul is going to happen by the end of the calendar year. Last week, it seemed more likely than not that Congress would pass a new tax bill. This week … the …Read More

Why Do Individuals Make Charitable Gifts the Way They Do?

This is a gift planning question because it goes to how different individuals make charitable gifts differently. Most modest gifts and some large gifts are made in cash, which tend to be current, outright gifts. Givers of modest amounts aren’t looking to do anything fancy either in terms of what they give or in terms …Read More

Tax Reform Update 10/4/17

As promised (and mentioned in this blog), the framework for the tax reform proposal by the White House, House Ways and Means Committee, and Senate Committee on Finance, was presented on Wednesday, September 27. Since that announcement, many various media outlets and financial experts have weighed in. In particular, we find this preliminary analysis by …Read More

Answers to “A Gift Planning Quiz”

Click here to view original post, “A Gift Planning Quiz.” Questions & Answers: Q. Donor uses highly appreciated stock to pay a legally enforceable pledge. Why isn’t Donor treated as selling or exchanging the stock so that Donor realizes a capital gain? Hint: If an individual pays a debt by transferring appreciated stock to the …Read More

Gift Planning to Benefit Third Parties

Third parties such as the donor’s grandchild, sibling, or housekeeper. To a large extent, gift planning depends upon the age of the individual to be benefited. For example, if the individual is a newborn grandchild and the goal is to provide future college education funds, the best planning may be to set up a purely …Read More

Let’s Take a Look at the Federal Gift Tax, Part 2

Last time, we encountered the $14,000 (for 2017) annual gift exclusion, which shields up to $14,000 a year given to any one individual from gift tax. For example, in 2017 Tillie gives each of her six grandchildren a check for $14,000: there is no gift tax; Tillie is allowed six $14,000 annual exclusions. Now, to …Read More

Let’s Take a Look at the Federal Gift Tax, Part 1

The federal gift tax doesn’t raise much revenue (less than 2% of the total federal revenue). Like the estate tax, it is retained today for political, not revenue-raising, purposes. It’s a complex and tricky tax. There’s no reason for a gift officer to try to grasp the whole of it; but gift planners do need …Read More

“Partial Interest” Rule, Pt. 2

Read Pt. 1 of “Partial Interest” Rule by clicking here. Last time, we developed an analogy to grasp the concept of a partial interest and also learned that a charitable gift of a partial interest is generally not deductible. The analogy was a handful of uncooked spaghetti strands. The handful represents full and complete ownership …Read More

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