Mid-Year Tax Planning

Lavelle & Finn


Year-end tax planning is on the agenda for many taxpayers, with good reason. That said, you don’t have to wait for November or December to make astute moves. Planning in June or July can lead to tax savings that might be reduced or lost altogether if you wait for late fall to act. Here are […]

How IRAs Affect Medicaid Planning

Lavelle & Finn


The national median cost of a private room in a nursing home is $8,365 a month (over $100,000 a year), according to the 2018 Genworth Cost of Care Survey. Similar costs for assisted living and home health care are nearly $50,000 a year. Costs are higher in some areas, lower in others, but throughout the […]

New Rules for Business Travel Deductions

Lavelle & Finn


Under the Tax Cuts and Jobs Act of 2017 (TCJA), business travel is still tax-deductible but there is now a major difference from the past. Relatively few individuals will be able to claim such deductions because, for the most part, deductions can be taken only at the company level. How is this different from prior […]

Tax Calendar: June and July 2019

Lavelle & Finn


JUNE 2019 June 17 Individuals. If you are not paying your 2019 income tax through withholding (or will not pay enough tax during the year that way), pay the second installment of your 2019 estimated tax. If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United […]

Using the 0% Tax Rate

Lavelle & Finn


Generally, profits from selling assets such as securities and real estate held in taxable accounts are classed as long-term if the holding period was longer than one year. Tax rates on long-term capital gains are 0%, 15%, or 20%, depending on the seller’s income. To maximize use of the 0% rate, your taxable income (after […]

Working Around the New “Kiddie Tax”

Lavelle & Finn


The article on page 1 of this issue of the Tax Bulletin explains that single taxpayers with taxable income up to $39,375 ($78,750 on joint returns) can pay 0% tax on long-term capital gains. That may suggest some income-shifting strategies. Example 1: Suppose that Fred and Grace Holden plan to switch from XYZ Stock Fund […]

Final Regulations Clarify IRC Section 199A

Lavelle & Finn


The IRS recently published final regulations regarding Section 199A of the IRC. That section, created by the Tax Cuts and Jobs Act of 2017, offers a 20% deduction for qualified business income (QBI). This deduction may be available to non-C-corporation taxpayers such as sole proprietors, business partners, certain LLC members, S corporation shareholders, and some […]

Tax Calendar: May and June 2019

Lavelle & Finn


MAY 2019 May 10           Employers. For Social Security, Medicare, and withheld income tax, file Form 941 for the first quarter of 2019. This due date applies only if you deposited the tax for the quarter in full and on time.   May 15 Employers. For Social Security, Medicare, withheld income tax, and nonpayroll withholding, deposit […]

The Standard Deduction’s Double Standard

Lavelle & Finn


The 2019 “tax season,” during which most 2018 tax returns are prepared, will soon peak at the April 15 deadline. One key trend is that more people are taking the standard deduction, which has increased significantly, and fewer people are claiming itemized deductions, which have been restricted. These changes result from passage of the Tax […]

Homeowner’s Insurance Protects a Prime Asset

Lavelle & Finn


From coast to coast, hurricanes and wildfires and other natural disasters have created headlines while destroying homes. Your principal residence is probably a valuable asset, so you should be confident your homeowner’s insurance can protect you against multiple perils. Chances are, your first experience with homeowner’s coverage probably coincided with your first home purchase, which […]