Despite its off-putting name, a “Crummey trust” can provide favorable results for individuals who have a significant amount of assets. This device might be incorporated into a comprehensive estate plan.
One of the biggest tax breaks in the tax code is the home sale exclusion. If you qualify, you can exclude the tax on the first $250,000 of gain from the sale of your principal residence, doubled to $500,000 if you file a joint return. But the exclusion is not available if you do not meet certain requirements.
Are you planning a business trip to a distant city? If the destination is known for its cultural attractions or recreational activities, you might want to combine your business with a little pleasure. In fact, this could be a chance to get away after the children have gone back to school or to just spend some quality “alone time” with your spouse.
The good news is that the bulk of your expenses are deductible if you handle things the right way. However, if you are not careful, you could run afoul of some tricky tax rules.
ABLE Act authorizes state programs
When the Tax Increase Prevention Act of 2014 (TIPA) was passed late last year, most of the attention was directed at the long list of extenders that were included in the new law, many of them retroactive to the beginning of 2014. But another piece of legislation attached to TIPA has “flown under the radar” thus far. Significantly, the Achieving a Better Life Experience (ABLE) Act authorizes the individual states to establish tax-free savings accounts for disabled individuals.