ESOPs as an Exit Strategy

ESOPs as an Exit Strategy

An employee stock option plan (ESOP) is an often-overlooked exit strategy for business owners. An ESOP is a qualified retirement plan that gives employees ownership in the company through stock. They are flexible, allowing owners to slowly sell their shares over time...
SECURE Tax Acts and Retirement

SECURE Tax Acts and Retirement

From 2017 to 2022, there were several wide sweeping changes to the Tax Code. From the tax cuts created by the 2017 Tax Act to the legislation passed in 2020 and 2021 in response to the Covid pandemic. These tax law changes have effected most US taxpayers. However,...
Intentionally Defective Grantor Trusts

Intentionally Defective Grantor Trusts

The Tax Reduction and Jobs Creation Act of 2017 (The 2017 Act) reduced the number of taxpayers who might be subject to Estate Tax upon their death. The Estate Tax exempts estates under a specific exemption amount. For 2024, the exemption amount is $13.6 million or for...
Intentionally Defective Grantor Trusts

Backdoor Roth IRA

Today’s topic for Tax Tip Friday is Backdoor Roth IRAs. While Roth IRAs are very popular, many high income taxpayers are unable to contribute due to Modified Adjusted Gross Income (MAGI) limits. The backdoor Roth IRA is a strategy that allows high income taxpayers,...
Intentionally Defective Grantor Trusts

Qualified Charitable Distributions (QCQ)

If you’re 70 ½ or older and have a traditional IRA account, you might want to explore the option of making a Qualified Charitable Distribution (QCD). With the ongoing increase in standard deductions, many taxpayers find themselves unable to itemize deductions,...
CTA Update: Inactive Entities Exempt from BOI Reporting

CTA Update: Inactive Entities Exempt from BOI Reporting

In Week Five of our CTA Series, we’re exploring the intricacies of inactive entities exempt from BOI reporting. According to FinCen, specific criteria must be met for an entity to qualify as inactive. Let’s dive into these criteria and unravel the essentials. 1. The...
CTA Update: Inactive Entities Exempt from BOI Reporting

2024 Federal and State Updates

As we are entering the 2024 tax season, the following are some changes that may impact the filing of Federal, DE, PA or NJ returns this year and beyond. Pennsylvania For tax years beginning on or after January 1, 2023 for PA Personal Income tax purposes: Pennsylvania...
CTA Update: Inactive Entities Exempt from BOI Reporting

Self-Employment Tax and Limited Partners

RE: Soroban Capital Partners LP, Soroban Capital Partners GP LLC v. Commissioner of Internal Revenue This is a summary memo regarding the United States Tax Court Decision that was filed November 28, 2023. The case dealt with the issue of self-employment income...
CTA Update: Inactive Entities Exempt from BOI Reporting

CTA Update: Criteria for Identifying Reporting Companies

In Week Four of our CTA Series, we delve into the criteria for identifying reporting companies, encompassing both domestic and foreign entities. FinCen outlines the definitions of domestic and foreign reporting companies as follows: A domestic reporting company is a...
CTA Update: Inactive Entities Exempt from BOI Reporting

Tax Bill Changes for 2023

We have been closely monitoring the legislative developments in Congress, and a bill is on the verge of being passed that will have a direct impact on the treatment of taxes. Specifically, the bill proposes the following: The repeal of Section 174 of the Internal...
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