Category: Taxation-Individuals

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 ›

Navigating the financial aspects of a divorce can be hard enough without also worrying about the impact of legislation on your personal financial life. And yet, here we are! At the end of 2025, several provisions of the 2017 Tax Cuts and Jobs Act (TCJA), the most notable tax legislation to pass since the 1980s, are scheduled to expire. Given the number of years in which the TCJA has now been in place, divorced or divorcing individuals may have been… Read more ›

Ms. Rowny is also a senior financial advisor with May Barnhard Investments, the firm’s fee-only wealth management subsidiary. Divorce is challenging. Navigating both the emotional and financial complexities of a divorce can be difficult since divorce is not something a person regularly goes through. Some helpful news, though, is that facing the impact of marital dissolution on your tax situation is something a little advance knowledge can assist with. CBM’s divorce financial planning team has provided the following insights to… Read more ›

President Biden has released his proposed budget for the 2025 fiscal year, including numerous tax provisions affecting both businesses and individual taxpayers. While most of these provisions have little chance of coming to fruition while the U.S. House of Representatives remains controlled by the Republican Party, they might gain new life depending on the outcome of the November elections. Here’s an overview of the major tax proposals included in the budget. Business Tax Provisions The budget proposal includes many changes… Read more ›

Trusts can be an integral part of estate planning, offering tax advantages and giving individuals the ability to distribute their assets according to their desires. An individual who holds shares in an S corporation and who is considering gifting stock as part of planning their estate may wish to carefully consider the types of trusts available. In our article, Trust Types As An S Corporation Shareholder, we discussed several types of trusts that can serve as an S corporation shareholder…. Read more ›

An S corporation is a business structure that allows the passage of taxable income, losses, credits and deductions to shareholders, thereby preventing income from being exposed to the consequences of double taxation at the corporate and individual levels. Although an S corporation benefits from certain tax advantages, it also faces restrictions such as a limit on the number of shareholders – no more than 100. As part of estate planning, some individuals choose to take advantage of the availability of… Read more ›

Making a mistake while filing your taxes can lead to complications with the Internal Revenue Service (IRS). Some oversights or errors are easily fixed but others could have deeper consequences, impacting your refund, your tax liability or even lead to fines or an audit. While CBM always recommends working with a knowledgeable tax professional, you should always be mindful to avoid these common mistakes.  You may be surprised to know the most common mistakes with tax filings, as reported by… Read more ›

As the 2024 individual tax filing deadline approaches, CBM is happy to share some helpful tips and strategies for tax planning. Even if it is too late to take advantage of some of these deductions and benefits for 2023 (some are still available to you!), it’s never too early to begin planning for the 2024 tax year. Please contact a CBM tax professional or financial planner to ensure you are taking advantage of as many benefits as possible. Contribute to… Read more ›

If the complexity of IRS notices has historically got you scratching your head, you’re not alone. Fortunately, the IRS is addressing this problem with a “Simple Notice Initiative”, a program which will be rolled out in the coming years to improve communications with customers by focusing on: This ambitious project will end up impacting up to 90% of notices distributed by the IRS by the 2025 filing season. It will begin by updating notices commonly distributed to individual taxpayers including… Read more ›