Tax Matters

Articles of interest on Tax Matters

Bandersnatch from Alice in Wonderland

With apologies to Alice, and to Lewis Carroll: the Bandersnatch seems to be alive in 15 states who separately tax estates (and some also tax inheritances). The range of ravagement on a $5 million estate, which is exempt from Federal Tax, is a low of $64,400 (Hawaii) to a high of $425,000 (Oregon).

To Give or Receive - that is the tax question

Much legend and myth surrounds gifting. For your planning, here are some high points and ideas:

Firstly: Gifts and Inheritances are generally not income taxable. Any “gift tax” is generally the responsibility of the donor, but there are exceptions.

When and whether legal fees are deductible depends upon the underlying purpose of the fees.

When and whether legal fees are deductible depends upon the underlying purpose of the fees. If deductible, some fees are considered capital in their nature, and must be combined with depreciable or amortizable assets, and deducted over time.

Child Labor - How to help your children

How do you teach your children responsibility to others, and in their finances? If you are an entrepreneur, you might consider requiring their serious efforts at your business or practice. At a young age, children can perform many meaningful and needed jobs, from running the vacuum and other cleaning tasks, to sorting and filing.