Archive for November, 2017

Required Minimum Distributions (RMDs) – The Basics

November 28th, 2017 No comments

Once age 70 ½ is reached, you need to take your first required minimum distribution (RMD) from your IRA accounts. You turned 70 ½ in 2017 if you were born between July 1, 1946 and June 30, 1947. You always use the age you are on the last day of the year.

Generally, you need to take your RMDs by December 31st of the year for which it is due. But for your first RMD, you can defer the distribution to April 1st of the following year. Isn’t it always best to defer income if you can? If you decide to defer that first RMD from 2017 to 2018, you need to realize that you will end up with two RMDs in 2018 (the 2017 & 2018 RMDs). Generally for many taxpayers, the bunching of income is not a good thing.

Who is responsible for computing and remitting the RMD? Many taxpayers mistakenly think Read more…


US Treasury Bond Planning

November 21st, 2017 No comments

You find yourself in a position where you or an elder parent has U.S. Treasury Bonds as part of an investment portfolio and you are wondering if the bonds should be redeemed.

You are concerned because the interest earned on those bonds would be taxable income and would affect the individual’s income tax bracket, outflow of cash to pay the taxes, and could possibly affect the financial statements presented to an Assisted Living or a Continuing Care Retirement Community.

You are asking yourself what is the most effective plan to implement. While this blog will consider some of the more pertinent tax issues, a senior care attorney should always be consulted in these situations.

Let’s first look at the rules regarding the reporting of the interest earned on those bonds. Read more…


IRS To Allow Truncated SSNs

November 14th, 2017 No comments

In an effort to reduce identity theft, the IRS issued proposed regulations that would permit employers to use truncated taxpayer identification numbers (TTINs) on Forms W-2, Wage and Tax Statement, issued to employees. Permissible TTINs are Social Security numbers (SSNs) with the first five digits of the nine-digit number replaced with asterisks or XXXs in the following formats: ***-**-1234 or XXX-XX-1234.

Although this change was effective on the date of enactment, December 18, 2015, the IRS is delaying the effective date of the proposed regulations until Read more…


Increasing State Income Taxes – Panacea or Pain

November 7th, 2017 No comments

Discussions about eliminating the state and local income tax deduction as part of President Trump’s agenda for a new tax act have taxpayers in New York, New Jersey, Connecticut, and California up in arms because they would lose a very significant itemized tax deduction if this provision was enacted by Congress resulting in an increased tax burden.

Some would argue that perhaps it is time Read more…

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