Tax Planning
Deductibility of interest
We are often asked what types of interest are tax-deductible? Tax laws change frequently and people are often not aware of how these changes can affect their tax returns.
Election tax proposals
With the election looming soon, we thought it is a good time to look at the current tax laws versus both Republican and Democratic proposed tax law changes. In December 2017, The Tax Cuts and Jobs Act (TCJA) was passed. This act temporarily changed several tax laws and is set to expire in 2025.
Capitalizing on market volatility
The volatility of the market currently has many people worrying about their investment accounts. Did you know there are ways to capitalize on this volatility?
Long-term Care premiums, are the premiums tax deductible?
In the August 24th post we discussed the options for long-term care needs and policies. Did you know you may receive tax benefits on the premiums you pay? On your federal return you may be able to deduct the premiums paid. In many states, including New York, you may be eligible to receive a tax […]
Back to school time is here! Everything you need to know about 529 Plan contributions and distributions.
It is the time of year to get ready to return to school. The return to school this year is looking very different for most students. Many students are adjusting to going to school virtually, living at home versus on campus, or a hybrid of online and in-person classes. With all the changes to how […]
Who pays the taxes on a grantor’s trust?
In the August 6th blog at PwPpartners.com, we learned about how grantor’s trusts work, but who pays the taxes on a grantor’s trust? The simple answer is it depends. The grantor pays the taxes if the grantor is still living on their personal income tax return. If the grantor has passed away, the trust and […]
Income estates – Who pays the taxes?
In the July 27th post at PwPpartners.com, we discussed asset estate returns: when they are required, what is included, and when to file them. Today’s discussion is about income estate returns: when to file, common deductions, and items that cannot be deducted. The first step to determine if an income estate return needs to be […]
2020 Charitable contributions $300 above the line deduction
The 2018 tax year brought about some significant changes to how many people filed their tax returns. Standard deduction amount increased, mortgage interest deduction became limited, and state and local taxes were limited to $10,000 (SALT deduction). The increase of the standard deduction caused many people to go from itemizing to taking the standard deduction. […]
Feeling Charitable?
Americans are known as some of the most charitable people in the world. When natural disasters occur, we donate to relief efforts. We often support causes that friends and family members hold near and dear. At Planning with Purpose, with our passion for education and being self-supporting, we often ask clients to support Mom’s House.
High school graduate – let’s talk taxes!
High school graduations have not happened in the traditional way this year and people have found creative ways to celebrate during this chaotic time. As you are waiting to find out when schools are going to open, what will the learning environment look like, and how will it change the college experience, you should also […]