The election of Donald Trump as President of the United States, along with Republicans retaining control of both chambers of Congress, will likely result in an overhaul of the U.S. tax code.
They say timing is everything. And, when it comes to year-end tax planning, this expression certainly holds true for income and expenses.
Q: What are the new tax filing deadlines under the highway funding law?
A: In addition to providing continued funding for federal transportation projects, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 changes the due dates for several types of tax and information returns:
Even though tax filing time is far away, the fall is the perfect time to start your planning so you can take advantage of all opportunities to minimize your tax bill.
If you’ve invested in a trade or business in which you don’t materially participate, remember the passive activity rules. Why? Passive activity income may be subject to the NIIT, and passive activity losses generally are deductible only against income from other passive activities. You can carry forward disallowed losses to the following year, subject to the same limits.
In recent years, when valuing a “less than a controlling interest” in a closely held company, a “minority interest discount” has been applied when gifting, or otherwise transferring such minority interest to a family member.
Not-for-Profits ("NFPs") have received some welcome tax news from an unlikely source — the federal highway funding bill. The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 modifies several due dates for tax returns, including the Form 990 annual information returns.
When it comes to tax planning, nothing is simple. For example, first you need to consider your marginal tax rate—this is the regular rate you'll pay on your next dollar of "ordinary income" (salary, business income, interest, and more).
Investment interest — interest on debt used to buy assets held for investment, such as margin debt used to buy securities — is deductible for both regular tax and AMT purposes. But special rules apply.