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Qualified Opportunity Funds: A new weapon in the estate planning arsenal The Tax Cuts and Jobs Act created a new program to encourage investment in economically distressed areas through generous tax incentives. The Qualified Opportunity Zone (QOZ) program relies on investments in Qualified Opportunity Funds (QOFs) — funds that can provide wealthy taxpayers with some […]

Nondeductible IRA contributions require careful tracking If, like many people, your traditional IRA holds a mixture of deductible (after-tax) and nondeductible (pretax) contributions, it’s important to track your contributions carefully to avoid double taxation of distributions. Why? Because the IRS treats distributions as a blend of pretax and after-tax dollars. If you treat distributions as

What Happens After a Grant of Asylum? After receiving your final approval of asylum, you are now legally allowed to live in the U.S., seek U.S. employment, and travel freely with the proper documentation in and out of the U.S. As time passes, you will be able to secure greater rights. As an asylee or

Use nongrantor trusts to bypass the SALT deduction limit If you reside in a high-tax state, you may want to consider using nongrantor trusts to soften the blow of the $10,000 federal limit on state and local tax (SALT) deductions. The limit can significantly reduce itemized deductions if your state income and property taxes are

If you’re a non-U.S. citizen, the estate planning rules are different Traditional estate planning strategies generally are based on the assumption that all family members involved are U.S. citizens. However, if you or your spouse is a noncitizen, special rules apply that may require additional planning. Defining “residency” and “domicile” If you’re a U.S. resident,

Inheriting property? Be aware of the basis consistency rules If you’re in line to inherit property from a parent or other loved one, it’s critical to understand the basis consistency rules. Current tax law, passed in 2015, provides that the income tax basis of property received from a deceased person can’t exceed the property’s fair

The Process of Obtaining Green Cards for Family Members First thing first, determining which family members you can petition for is of upmost importance. In this matter, depending on how your family member is related determines whether they will be able to come to the U.S. It is a myth that just because you are

Determining whether you need to file a gift tax return can be tricky For 2020, the lifetime gift and estate tax exemption has reached a whopping $11.58 million ($23.16 million for married couples). As a result, few people will be subject to federal gift taxes. If your wealth is well within the exemption amount, does

Take steps to curb power of attorney abuse A financial power of attorney can be a valuable planning tool. The most common type is the durable power of attorney, which allows someone (the agent) to act on the behalf of another person (the principal) even if the person becomes mentally incompetent or otherwise incapacitated. It

If you’re planning to move overseas, it’s time for an estate plan review Whether you’re moving to another country for work-related reasons, retirement or simply want an opportunity to experience a new culture, it’s important to understand the potential tax and estate planning implications. If you don’t, you could be hit with some unpleasant surprises.