Legacy Giving
News & Information

The following is intended as general information and does not represent legal or tax advice. The information presented is the view of the author and not necessarily the view of McLeod Health Foundation. Individual circumstances vary – please consult your legal and tax advisors about your specific situation.

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FAQs regarding tax record keeping

Tax season is over for another year. Now all that's left cleaning up after the filing crunch. I know many of y'all are tempted to simply toss everything in the trash. Don't.
You don't have to the tax version of television's Hoarders, but there are some tax-related documents you need to hang onto, at least for a while. These 7 frequently asked questions and answers can help you get a better handle on your tax record keeping.

Strategies To Minimize Or Delay Required Minimum Distribution (RMD) Obligations

The benefit of contributing to pre-tax retirement accounts like IRAs and 401(k) plans is the opportunity to receive an upfront tax deduction, and enjoy the growth that remains tax-deferred as long as the investments remain in the retirement account.
For those who don’t actually need to use their retirement accounts – yet, or at all – the mandatory withdrawals of the RMD obligation presents a substantial tax challenge, as the forced distributions not only trigger taxes on the RMD amount itself, but also risks driving the retiree up into a higher tax bracket when stacked on top of all of his/her other retirement income as well. Fortunately, though, the reality is that there are numerous strategies that can be leveraged to manage and minimize required minimum distributions. The potential exists to at least partially manage and minimize RMDs, and mitigate some of their tax bite!

U.S. Supreme Court Hears Case on States' Ability to Tax Trust Income

A state’s ability to tax trust income was before the U.S. Supreme Court on April 16 when it heard oral arguments in the case of North Carolina Department of Revenue v. Kimberly Rice Kaestner 1992 Family Trust. The due process clause of the Fourteenth Amendment to the U.S. Constitution allows a state to tax those who have minimum contacts with the state. At issue in Kaestner is whose minimum contacts count for due process purposes. North Carolina takes the position that a trust is for the sole benefit of its beneficiaries, thus it’s the minimum contacts of the beneficiaries that are most important for purposes of the Fourteenth Amendment. Twenty states filed with the Court to urge that the North Carolina position be adopted because to do otherwise would not only rob many states of revenue – 27 states tax trust income based on a settlor’s or beneficiary’s residence, not the trustee’s residence – but also would create what amounts to a uniform standard for trust taxation that would infringe on state sovereignty. Taxpayer’s Position. Not so fast says the taxpayer. If a beneficiary has no right to the undistributed income of the trust, then it can’t be the beneficiary’s minimum contacts that are important because the beneficiary has minimal, or no, possession or control over the income. Instead, says the taxpayer, it’s the trustee who’s in charge of the trust, and it’s the trustee’s minimum contacts that matter for trust taxation. The taxpayer’s position is supported by a multitude of tax organizations and trust and bank associations.

Ten things that will trigger a tax audit

Just 1 in about 160 individual tax returns were audited in 2017. The biggest drop in audits was of those aimed at high-income household filings, although those returns still were examined (that's the word the IRS likes to use instead of audited) at a higher rate than filers in other income levels. So if there are fewer audits examinations, should we non-wealthy quit worrying whether we'll hear from the IRS after we file? If you're there with me in stressing at least a little over whether you'll get audited, here some tax issues we should avoid, if all possible

Identity theft remains on IRS’ "Dirty Dozen" list despite progress

Despite a steep drop in tax-related identity theft in recent years, the Internal Revenue Service today warned taxpayers that the scam remains serious enough to earn a spot on the agency’s 2019 “Dirty Dozen” list of tax scams. “Taxpayers should continue to protect their sensitive tax and financial data to help protect against identity thieves,” IRS Commissioner Chuck Rettig said. “The IRS and the Security Summit partners in the states and the private sector have joined forces to improve our defenses against tax-related identity theft, sharply reducing the number of victims. But we encourage taxpayers to continue to be on the lookout for identity theft schemes, including email phishing attempts and other tax scams.”
The IRS’ "Dirty Dozen" is compiled annually and outlines a variety of common scams taxpayers may encounter any time during the year.

Eight Tips for Independent Advisors to Minimize Taxes

While written for investment advisors, the article correctly identifies advisors as small business owners and the tips may apply broadly.

Quite often, small business owners overlook some great tax reduction opportunities. We all have to pay taxes, but there's no reason to overpay. Employ legal tax reduction strategies, send less to Uncle Sam, and you'll automatically keep more revenue for yourself. Here are eight things you can do this year—some fairly obvious, others not so much—to potentially improve your tax situation.

What are some tips for creating a home inventory?
Imagine having to remember and describe every item in your home, especially after you've been the victim of a fire, theft, or natural disaster. Rather than relying on your memory, you may want to prepare a home inventory — a detailed record of all your personal property. This record can help substantiate an insurance claim, support a police report when items are stolen, or prove a loss to the IRS. Here are some tips to get started.

What are some tips for creating a home inventory?

Imagine having to remember and describe every item in your home, especially after you've been the victim of a fire, theft, or natural disaster. Rather than relying on your memory, you may want to prepare a home inventory — a detailed record of all your personal property. This record can help substantiate an insurance claim, support a police report when items are stolen, or prove a loss to the IRS. Here are some tips to get started.

12 Ways To Beat Capital Gains Tax In The Age Of Trump

Got capital gains? Don’t fret. Under the Trump tax overhaul, effective as of tax year 2018, most of the old tricks to avoid or reduce the capital gains tax bite on sales of appreciated assets still work, albeit with tweaks. “The zero-percent capital gains rate is a terrible thing to waste,” says Timothy Wyman, a certified financial planner in Southfield, Michigan. But what’s really got wealth advisors and their rich clients excited is a powerful new triple-tax-efficient play - Read more.

For more information or a confidential discussion of your charitable options, please
email or call, Roxanna Prezioso, at (843) 777-2694.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. You may also contact a member of the Professional Advisory Council. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Legacy Giving section has been developed for McLeod Health Foundation and is owned by Future Focus. Please report any problems to section webmaster.

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