Retirees may face a more complicated tax situation than when they were still working. For example, a portion of their Social Security benefits may be taxed at the federal level if their combined income, which is their adjusted gross income, plus any non-taxable interest and 50% of their benefits, exceeds a certain limit. Their retirement benefits may also be subject to state income taxes. Those who reach the age of 70 1/2 will have to take mandatory distributions from tax-deferred accounts that could boost their taxable income. To read the full article in FinancialPlanning, click: Beware of Hidden Taxes in…
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Help Clients Plan for the New Pass-Through Tax Deduction The new tax law includes a 20% deduction for some pass-through business income, but the specifics will vary depending on a client’s circumstances. The rules are fairly straightforward for clients with taxable income under certain thresholds: $157,500 for individuals and $315,000 for joint filers. To read the full article in ThinkAdvisor, click: The New 20% Pass-Through Tax Deduction: An Advisor’s Guide.
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Valuation Discounts, What the Interest Owners See, and What a Direct Owner Sees What sort of discounts apply to pass-through entities? Rand Curtiss helps clarify, looking at investment characteristics, investment profiles, and the interaction of these elements. He draws four conclusions. Find out what they are here.
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There Are Different Standards. They Have Different Places in Various Appraisals. Here’s Why. Jim Hitchner considers various responses to the query: “When valuing an operating company, is it necessary to mention USPAP in addition to SSVS 1 when talking about the standards adhered to?” Good question. There were lots of answers from various valuators in a recent discussion. Here’s Jim’s take on it all.