Year End Tax Planning & the Kiddie Tax – IRC §1(g)(2) – IRS Form 8615

The most common year end tax planning questions generally have been revolving around the implications of sheltering and feeding fully grown and educated children as flying the coop has become increasingly difficult for the current generation of young adults.  “Hanging” at Mom and/or Dad’s place as a young professional is the new ‘thing” to do.  If…

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With a CLAT, CLUT here and a CRAT, CRUT there – Old MacDonald had a Trust EIEIO: IRC 641-692 & IRS Form 1041

The one thing stopping good people from engaging the full force and effect of tax and estate planning using trust instruments is the language. Acronyms make it hard to understand what lawyers are saying and most of us simply put ourselves out of commission when it comes to this type of tax planning. It does…

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Donor Advised Funds IRC §4966

In my last post about how year end tax planning starts with reassessing one’s commitment to charitable donations I mentioned that my Mom donated her appreciated shares of Exon Mobile to a Donor Advised Fund (DAF). Many readers had questions about what a DAF is and the mechanics of donating to one. So much so…

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Year End Tax Planning Starts with a Charitable Donation Assessment How Do You PLAN to Give Back Next Year?

The more money we tend to have, the harder it tends to be to share our resources with others. This is true up to the point we start to appreciate the significance of giving back. For many this tipping point comes far too late in life if at all. If you charitably donate or are…

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New requirement for dependents whose passports don’t have a date of entry into the U.S.

The IRS changed its policy on acceptable documentation for issuing dependent Individual Taxpayer Identification Numbers (ITIN). The agency no longer accepts passports that do not have a date of entry into the U.S. as a stand-alone identification document for dependents from countries other than Canada or Mexico or dependents of military members overseas. In addition…

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General Tax Benefits of Charitably Giving

Warren Buffet released certain claims made on his 2015 personal income tax return in a statement released by Business Wire, A Berkshire Hathaway Company. It is worth noting his remarkable generosity. Check out these figures: adjusted gross income – $11,563,931 – MILLION Itemized deductions – $5,477,694 – MILLION Total charitable contributions – $2,858,057,970 – BILLION…

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Types of Charitable Contributions and the Most Common Way a Charitable Contribution Can Be Made

While working on the St. Peter 2016/17 Stewardship Campaign it became very clear to me that some very smart endowed good people simply do not know about the various types of charitable contributions that can be created or even simply how to charitably give. Once you’ve recognized the significance of giving back, you may as well…

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Charitably Giving with Intention – An Introspective – Part 1 – QCD’s

Last spring I became relatively involved with St. Peter’s Stewardship Committee out here in Greenwood Village, Colorado.  With membership ranks and pledged donations struggling, my wife and I developed a plan to drill down into several aspects of charitable giving and report findings along the way. Four underlying themes have surfaced including that the vast…

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Retirement Savings Contribution Catch Up Considerations

If you will be 50 or older by the end of 2016, you may be able to contribute more money every year to your employer-sponsored retirement plans and your individual retirement arrangements. Contributing more money will help you save more for your retirement and reduce your taxable income if you make pre-tax retirement plan contributions…

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Immediately Effective Changes to IRS ITIN Acceptance Agent Program

According to Brenda L. Hales, Senior Tax Analyst, Internal Revenue Service, ITIN Policy Section-M/S 97-WI of 401 W Peachtree Street NW, Atlanta, GA 30308 the ITIN Acceptance Agent Program includes the following changes made in 2016 and are immediately effective: Certification Process Changes For dependents, Certifying Acceptance Agents (CAA’s) will now be allowed to authenticate the passport and birth certificate. CAAs…

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