The answer: it depends. Tax rules in the United States look to the “origin of the claim” to determine whether funds paid in connection with a lawsuit are taxable. For example, damages paid in satisfaction of lost income would be taxable because the claim originated in the loss of monies that would have been taxable…
As the cryptocurrency economy continues to grow, many of our clients and colleagues have asked for guidance relating to integration of this asset class into a wholistic estate plan. Crypto assets can be an outstanding addition to a diversified portfolio, especially as a means of counterbalancing more conservative investments like blue chip stocks or bonds. However,…
With year-end approaching, it is time to start thinking about moves that may help lower your tax bill for this year and next. This year’s planning is more challenging than usual due to the uncertainty surrounding pending legislation that could, among other things, increase top rates on both ordinary income and capital gain starting next…
Who Is Required to Pay Estimated Taxes? Taxpayers with income not taxed at the source generally have a quarterly estimated tax obligation. This includes those receiving income from the following sources: Self-employment Interest Dividends Alimony Capital gains from selling stock, bonds, cryptocurrency, and other assets A business, including rental property income Prizes and awards According…
Here are a couple of federal tax updates relating to cryptocurrency, courtesy of our colleagues at the AICPA Journal of Accountancy. Form 1040 virtual currency query revised for 2021 A draft version released in July of Form 1040, U.S. Individual Income Tax Return, for the 2021 tax year on page 1 retains the question from…
Most of us know that estate planning, the process that distributes your assets after death, is important. Often, however, we don’t know where to start. It can be difficult to differentiate between intestate succession, a will, and a trust. Some aspects of each are very different, while others are more nuanced. In this article, we…
Estate planning is the process where you decide what happens to your property after death. For those unfamiliar with such planning, it is difficult to know where to begin. There are so many choices, starting with how you want to distribute your assets. People often confuse a wills and trusts, and they have a hard…
Internal Revenue Code Section 6050I generally imposes reporting requirements upon any person who is engaged in a trade or business and, in the course of such trade or business, receives more than $10,000 in cash in one transaction or two or more related transactions. These transactions are reported on IRS Form 8300, which collects identifying…
Planning the preservation of your hard-earned wealth and assets is essential. By that same token, estate planning can be extraordinarily complex because you must establish who gets what and when after you die. If you become incapacitated, your estate plan must include clear, comprehensive instructions as to who does what and when. Given these nuances, you must ensure your estate plan leaves no stone unturned, as…
H.R. 3684, known as the Infrastructure Investment and Jobs Act, passed the Senate on August 18th by a vote of 69–30 and now goes to the House of Representatives for consideration. To become law, the House must pass a companion bill and then the differences between the two must be worked out in committee prior…
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