Category: Taxation-Individuals

Hurricane Milton has caused catastrophic damage to many parts of Florida. Less than two weeks earlier, Hurricane Helene victimized millions of people in multiple states across the southeastern portion of the country. The two devastating storms are among the many weather-related disasters this year. Indeed, natural disasters have led to significant losses for many taxpayers, from hurricanes, tornadoes and other severe storms to the wildfires again raging in the West. If your family or business has been affected by a natural… Read more ›

This is the second article in a multi-part series to address the impact of significant life transitions on tax planning. Click here for Part I. Earlier this year, Councilor, Buchanan & Mitchell (CBM) kicked off an article series about the impact of significant life transitions on tax planning. In Part I of the series, we covered getting married, divorce, having children and buying a home. In this second part of the series, we will address selling your home, starting a business and… Read more ›

The IRS has published new regulations relevant to taxpayers subject to the “10-year rule” for required minimum distributions (RMDs) from inherited IRAs or other defined contribution plans. The final regs, which take effect in 2025, require many beneficiaries to take annual RMDs in the 10 years following the deceased’s death. SECURE Act Ended Stretch IRAs The genesis of the new regs dates back to the 2019 enactment of the Setting Every Community Up for Retirement Enhancement (SECURE) Act. One of… Read more ›

Jane Ochsman Rowny, CPA, CFP®, CDFA® and Jordan P. Egert, CPA, CFE, CDFA®, partners and directors of divorce and litigation services at Councilor, Buchanan & Mitchell (CBM), are scheduled to present at the Maryland Association of CPAs’ (MACPA) 55th Annual Chesapeake Tax Conference on Thursday, September 19. Their session, scheduled virtually from 10:45 am to 12 pm EDT, is entitled “Tax Issues in Divorce” and will address how the emotional aspects of a divorce may lead to financial mistakes and… Read more ›

The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act was signed into law in December 2022, bringing more than 90 changes to retirement plan and tax laws. Many of its provisions are little known and were written to roll out over several years rather than immediately taking effect. Here are several important changes that went into effect in 2024: Pension-Linked Emergency Savings Accounts (PLESAs) More than half of U.S. adults would turn to borrowing when confronted by an emergency… Read more ›

What’s the difference between capital gains and losses and ordinary gains and losses? The classification will have a major impact on your federal income tax obligations when you sell assets, such as investments, real estate, intangibles and other holdings. The classification of assets is generally straightforward, but the issue can be unclear in some situations. Here’s what you need to know if you plan to sell assets.  Categories of Gains and Losses For federal income tax purposes, gains and losses can be classified as either:… Read more ›

Serving as the fiduciary of a trust or estate requires specialized knowledge, organizational skills, time and meticulous attention to financial details. Individuals and corporate entities who serve in this role are also legally bound to follow a series of basic principles governing the decisions of fiduciaries including an expectation to act with reasonable care (called the duty of care), acting solely on behalf of the beneficiaries of the trust or estate (the duty of loyalty) and remaining impartial in serving… Read more ›

Many types of trusts are created with a similar goal in mind: to protect assets and the income they generate from a higher tax rate, creditors or other liabilities. A grantor trust is an example of a trust that lets the the holder (the grantor) protect the assets placed in trust by paying the tax liability on his/her personal 1040 return rather than deferring the tax liability to the trust and thereby cutting the amount ultimately paid out to the… Read more ›

This is the first article in a multi-part series to address the impact of significant life transitions on tax planning. Click here for Part II. Although preparing your taxes can be a smooth process in some years, significant life transitions can be counted upon to complicate your tax situation eventually. This article won’t delve deeply into each transition—other articles on our website (e.g. regarding divorce) provide greater detail for each transition. But CBM would like to offer the following overview… Read more ›

For the third consecutive year, the IRS has published guidance that offers some relief to taxpayers covered by the “10-year rule” for required minimum distributions (RMDs) from inherited IRAs or other defined contribution plans. But the IRS also indicated in Notice 2024-35 that forthcoming final regulations for the rule will apply for the purposes of determining RMDs from such accounts in 2025. Beneficiaries Face RMD Rule Changes The need for the latest guidance traces back to the 2019 enactment of… Read more ›