The 663(b) election, also known as the “65 Day Rule” enables a trust to make a distribution within the first 65 days of year, and have it count as a distribution for the previous tax year. While this has always been a planning tool used to maximize tax savings for trusts and beneficiaries, it takes[ … ]
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Mary is a Senior Tax Manager at BeachFleischman. Working in public accounting since 1988, she has extensive experience providing tax planning and compliance services.
Trust 65 Day Distribution Deadline is March 5, 2016
Note: The deadline in 2017 is March 6th. (More) The 663(b) election, also known as the “65 Day Rule” enables a trust to make a distribution within the first 65 days of the year, and have it count as a distribution for the previous tax year. While this has always been a planning tool used[ … ]
What Kind of Trust Can We Set up to Take Care of Our Special Needs Child?
A. You can create a special needs trust. For example, a couple whose child has severe autism might want a special needs trust because they’re worried about how the child will survive after the parents’ deaths. Reasons a trust is beneficial: Many people depend on government benefits, such as Social Security, Medicaid, rehabilitative care and transportation[ … ]
Can I Use a Qualified Residence Trust for a Vacation Home?
Yes. Many people with second homes want them to stay in the family but also want to limit estate and gift taxes upon their transfer. One way to achieve this might be to create a qualified personal residence trust (QPRT). How Is the Property Valued? The gift’s value is determined by calculating the home’s present[ … ]
Softening the Blow of Higher Taxes on Trust Income
This year, trusts are subject to the 39.6% ordinary-income rate and the 20% capital gains rate to the extent their taxable income exceeds $12,150. And the 3.8% net investment income tax applies to undistributed net investment income to the extent that a trust’s adjusted gross income exceeds $12,150. Three strategies can help you soften the[ … ]
Lower FSA Contribution Limit May Make HSAs More Attractive
Previously, employers could set whatever limit they wanted on employee contributions to Flexible Spending Accounts (FSAs) for health care. But starting this year, the maximum limit is $2,500. If you’re concerned about a lower limit and aren’t contributing to a Health Savings Account (HSA), look into whether you’re eligible — you must be covered by[ … ]
