POSTS TAGGED : taxes

Douglas Charney: Understanding Permanent Estate And Gift Tax Rules

Calculating tax benefits

Key Takeaways

  • The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, permanently extends key provisions of the Tax Cuts and Jobs Act.
  • The federal estate and gift tax exemption remains high and will rise to $15 million per person starting January 1, 2026, with no sunset.
  • The generation-skipping transfer tax exemption is aligned with the estate and gift tax exemption, simplifying multigenerational planning.
  • Top marginal income tax rates and capital gains tax structures from the TCJA are now permanent.
  • The law introduces new planning considerations, including enhanced standard deductions, the repeal of the personal exemption, and the new “Trump Account.”
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What to Do If You Receive an IRS CP 2000 Notice: A Guide to Disputing Tax Discrepancies

  • The IRS CP 2000 notice alerts taxpayers to discrepancies between reported income and third-party records.
  • Common triggers include unreported stock sales, missed 1099s, or incomplete home sale documentation.
  • Ignoring a CP 2000 notice can lead to costly penalties, interest, and increased tax liability.
  • Responding with proper documentation, like cost basis or eligible deductions, can reduce or eliminate the proposed tax increase.

Businessman receiving IRS CP 2000 notice

The IRS has recently ramped up its issuance of CP 2000 notices, causing concern for many. This wave has left many taxpayers confused and stressed, especially when they receive unexpected letters informing them of discrepancies in their tax returns. Understanding these notices is crucial for avoiding costly penalties and interest, so let’s break down what they are, why they happen, and how to respond effectively.…

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The Gig Economy and Taxes: Navigating the New Landscape

The gig economy has emerged as a significant component of the global labor market, characterized by its flexibility, independence, and diversity of opportunities. However, with these benefits come the complexities of navigating tax obligations, a challenge that has prompted calls for policy reform and greater clarity for gig workers.

Gig workers discussing taxes

The Growth and Challenges of the Gig Economy

The gig economy’s expansion is a reflection of the broader transformation in how work is conducted, emphasizing flexibility and autonomy over the traditional employment model. This shift was particularly evident during the COVID-19 pandemic, which acted as a catalyst for many, propelling them into gig work out of necessity due to layoffs, or as a deliberate choice for those seeking more control over their work-life balance.…

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The Tax Issue for Entrepreneurs Moving to Spain

Spain is a very popular destination for entrepreneurs looking to set up their business. However, there are a few things to consider when it comes to taxes. In this article, we take a look at the tax issue for entrepreneurs moving to Spain.

Entrepreneur in Spain

Spanish Tax Rates

The spanish tax rates system is one of the most complex in Europe. This is because the Spanish government has a large number of autonomous regions, each with its own tax rules. As a result, the tax rates for businesses can vary significantly depending on their location.

The corporate tax rate in Spain is 30%, which is relatively high by European standards.…

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What Qualifies as an Itemized Deduction

Like most people, you probably think of deductions as a way to reduce your taxes. But that’s not quite what they are. A deduction is a tax break that allows you to take an amount of money out of your taxable income and use it to lower your overall taxable income.

Itemize deductions

These Types of Deductions can be Either Personal or Business Deductions

Personal deductions include things:

  • Medical expenses (deducting them can help reduce your taxable income by up to 40% if you’re a high-income earner).
  • State and local taxes (deducting them can help reduce your taxable income by up to 40%).
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5 Types of Tax Fraud Activities You Should Know About In 2021

Tax fraud is a heavily laden term that means much more than an error in judgment. The violation occurs when a person knowingly provides incorrect information on the tax returns.

Tax fraud activities investigation

Strangely, a simple tax problem could spiral out of control and attract hefty penalties, including criminal charges and jail terms. The Internal Revenue Service (IRS) treats all tax issues seriously, and this includes filing a false tax return and accompanying documentation.

Most tax matters can be amended with the help of an experienced tax specialist or attorney with a deep understanding of IRS investigations and tax laws. Here are five types of tax fraud activities that you should be aware of in 2021:

Willfully underreporting taxable income

Different background checks serve varied purposes.…

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Small Business Taxes and Financial Regulations: Understanding Administrative Tasks

If you’re working inside the framework of a small business, there are a lot of details that you have to understand as you move forward. And two significant categories that surround lots of these details include taxes and financial regulations. The information surrounding these topics isn’t necessarily complicated, but it is specific and integral.

Doing small business taxes

Consider for a moment the knowledge that you’ll have to have of registering a business, representing your company concerning taxes, knowing how to purchase insurance or other processes to help with liability, and what to do in case of bankruptcy. All of those areas of concern are important to someone working to make a new, small business better.…

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Tax Deductible Business Expenses That Many Small Businesses Miss

Tax Deductible Business Expenses

Far too many small businesses, particularly start-ups and sole traders, are paying tax on things they do not need to. Largely this comes from not understanding which business expenses are tax deductible. These business expenses are there for small businesses to exploit – so is there something your small business is missing?

Employee Costs

Many costs to you or your employees incurred by your business are tax deductible. Expenses include cell phone bills for business calls, union dues, relevant magazine or periodical subscriptions, staff uniforms or business attire and memberships to relevant societies amongst others. Even if you are not currently using any of these services it may be worth looking into them knowing you can use them a little bit cheaper.…

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Five Surprising Health Insurance Tax Tips For Small Business Owners and The Self Employed

health insurance tax tips

Whether you’re self employed or a small business owner, preparing your taxes can be a daunting task – scrambling to find every little deduction within “hidden” tax codes to make the most of your return. And with Health Reform underway, there are new laws in effect that may translate into a bigger refund check.

Here are five health insurance-related tax tips to consider before you file your taxes this year:

1.   New this year! Take a one-time opportunity to reduce your self-employment taxes – In addition to the standard “˜above the line’ deduction described below, self-employed persons can also deduct the cost of their health insurance premiums from their self-employment taxes on Schedule SE.…

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Planning Your Year-End Business Tax Strategies

planning your tax strategiesWhile everybody else gears up for the holidays, small businesses should have another thing in mind apart from sales: filing taxes. As the fiscal year draws to a close, it is important that business owners review the current financial situation and start implementing strategies to help minimize your income tax.

There’s no better time than the present to start planning which tax strategies are best for your business, for you to get deductions. Before the holiday rush, business owners should already have a plan in place. If you don’t have one yet, now is as good a time as any to come up with one.…

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