Partnerships provide great flexibility in family income and estate tax planning. While the partnership vehicle has been around for a long time, there has been a recent surge in its use in family situations to shift income, wealth, and asset appreciation from higher-bracket, older generation family members to lower-bracket children and grandchildren. They are especially useful now that tax rate increases, including the Health Care Act’s additional .9% Medicare tax on wages and self-employment and 3.8% Medicare contribution tax on net investment income are effective in 2013. This article discusses the potential advantages and disadvantages of forming these partnerships.
Did your employees work on jobs in Los Angeles County in the past four years? If yes, there is a good chance that your business is eligible to claim Enterprise Zone Tax Credits and file for a refund of California taxes you paid in those years. Don’t take these refunds and future tax savings lightly – they can be significant as the tax credit is up to $37,440 for each qualifying employee hired.
WATCH FOR THESE TRIGGERS: • Payments between Former Spouses • Property Transfers between Former Spouses • Child-Related Tax Benefits When a couple is considering separation or divorce, unfortunately not so rare these days, there are potentially significant tax consequences of both physical separation and the financial separation of divorce. Some items to consider are the tax effects of [...]