Many clients and businesses are highly focused on the impact of taxes and tax rates on their bottom line. President Trump and Congress's passage of the Tax Cuts and Jobs Act brought unhappy surprises to many taxpayers accustomed to getting tax refunds. Make sure your clients are protecting themselves from higher taxes.
Completely updated for tax law changes and Tax Court decisions, this book will bring you up to date on the latest strategies that will preserve your clients' wealth and ensure your role as a trusted adviser to your clients. Get the latest techniques for building and conserving wealth through proactive tax-planning and investment strategies.
Key topics covered include;- Sales of capital gain assets and real property
- Planning for employer stock options, employer stock held in retirement accounts, and restricted stock
- Maximizing tax benefits for personal residence transactions
- Tax-planning opportunities with vacation homes, timeshares, and co-ownership arrangements
- Planning for divorce
- Tax-saving tips for self-employed clients
- Tax-smart college financing strategies
Table of Contents
Chapter 1 1-1
Maximizing Tax Benefits for Sales of Capital Gain Assets and Real Property 1-1
Current capital gain and dividend tax rates 1-3
Tax-smart strategies for capital gain assets 1-8
Tax-smart strategies for fixed-income investments 1-12
Planning for mutual fund transactions 1-14
Converting capital gains and dividends into ordinary income to maximize investment interest write-offs 1-19
Planning for capital gain treatment for subdivided lot sales via IRC Section 1237 relief 1-22
Land is not always a capital asset 1-29
Beneficial capital gain treatment allowed for sale of right to buy land and build condo project 1-33
Escape taxable gains altogether with like-kind exchanges 1-35
Primer on the 3.8% net investment income tax 1-49
Chapter 2 2-1
Planning for Employer Stock Options, Employer Stock Held in Retirement Accounts, and Restricted Stock 2-1
Employer stock options: Tax implications 2-2
How to handle employer stock received in a qualified retirement plan distribution 2-12
Restricted stock: Tax implications 2-14
Chapter 3 3-1
Maximizing Tax Benefits for Personal Residence Transactions 3-1
Qualification rules for gain exclusion privilege 3-2
Excluding gain from sale of land next to residence 3-13
Excluding gains in marriage and divorce situations 3-14
“Electing out” of gain exclusion privilege 3-18
Sale of former principal residence “freed up” suspended PALs from rental period even though gain on sale was excluded 3-19
Understanding the tax implications of personal residence short sales and foreclosures 3-21
Tax angles when client converts personal residence into rental property 3-29
How the TCJA affects homeowners 3-33
Chapter 4 4-1
Tax Planning Opportunities with Vacation Homes, Timeshares, and Co-Ownership Arrangements 4-1
Rules for “regular” vacation homes (as opposed to timeshares and co-ownership deals) 4-2
Rules for timeshares and vacation home co-ownership arrangements 4-7
Playing the gain exclusion game with multiple residences 4-10
Chapter 5 5-1
Tax Planning for Marital Splits and Married Same-Sex Couples 5-1
Separate versus joint returns for pre-divorce years 5-3
Avoiding pre-divorce tax fiascos with IRA and qualified retirement plan assets 5-11
Planning to achieve tax-effective splits of IRA and QRP assets 5-12
Planning to achieve equitable after-tax property divisions 5-18
Treating payments as deductible alimony 5-21
Tax developments affecting married same-sex couples 5-29
Chapter 6 6-1
Tax-Saving Tips for Self-Employed Clients 6-1
“Heavy” SUVs, pickups, and vans are still big tax-savers 6-2
Combine “heavy” vehicle with deductible home office for major tax savings 6-8
Home office deduction options 6-10
What to do when both spouses are active in the self-employment activity 6-20
Simplified compliance rules for unincorporated husband-wife businesses in non-community property states 6-27
Update on tax-smart health savings accounts 6-30
Section 199A - The qualified business income deduction 6-37
Should your client’s business switch to C corporation status? 6-44
Chapter 7 7-1
Tax-Smart College Financing Strategies 7-1
Education tax credits 7-2
Deduction for higher education tuition and fees 7-8
Deduction for student loan interest 7-9
Coverdell Education Savings Accounts 7-11
Tax-free interest from U.S. Savings Bonds 7-12
Electing the accrual method for U.S. Savings Bonds 7-15
Splitting investment income with the kids 7-17
How a closely held business can deduct college expenses paid for the owner’s adult child 7-30
“Last-minute” suggestions for procrastinators 7-32
Glossary Glossary 1
Index Index 1
Solutions Solutions 1
Chapter 1 Solutions 1
Chapter 2 Solutions 4
Chapter 3 Solutions 5
Chapter 4 Solutions 7
Chapter 5 Solutions 8
Chapter 6 Solutions 10
Chapter 7 Solutions 13
