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Tax

Supreme Court Ruling Impact on Corporate Estate Tax Planning

The U.S. Supreme Court unanimously ruled that life insurance proceeds a corporation receives to fund a share redemption agreement increase the corporation’s estate tax value. The case involved Crown C Supply, a small building supply company, and the IRS. The court stated that after the death of a shareholder, the value of their shares must reflect the corporation’s fair market value, including insurance proceeds meant to fund a share redemption. The decision affirms an earlier ruling in favor of the IRS, which had disagreed with the estate’s valuation of shares, leading to additional taxes for the estate. The Supreme Court concluded that the result is a consequence of how the shareholders chose to structure their agreement.

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Tax

Strategic depreciation practices for tax savings

In the realm of business finance, understanding depreciation methods is vital for maximizing tax savings. As assets inevitably depreciate over time, leveraging various depreciation strategies can offer significant advantages. This article delves into the basics of depreciation, exploring methods such as the Modified Accelerated Cost Recovery System (MACRS), Section 179 deduction, and bonus depreciation. Each method carries its own benefits and limitations, impacting tax liabilities differently. Additionally, the importance of strategic decision-making, timing asset purchases, and reinvesting early savings are highlighted as crucial practices for optimizing cash flow and tax benefits. Ultimately, consulting with tax professionals is advised to tailor depreciation strategies to individual business needs, ensuring compliance and maximizing financial advantages in a complex regulatory landscape.

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Tax

A Warning to Taxpayers: IRS Alerts on Rising Tax Scams

The IRS has warned taxpayers about the increase in tax scams that involve false claims for refunds. The scammers use various schemes to inflate the amount of refund they request, such as claiming credits for fuel tax, sick and family leave, or household employment taxes. These scams affect not only the taxpayers who fall prey to them, but also the IRS and other taxpayers who face delays in receiving their legitimate refunds. The IRS advises taxpayers to be vigilant and protect their personal and financial information from these fraudsters.

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Financial Tid-Bits

Tax Deductions: Donating To Charity

Did you donate to charity last year? Acknowledgment letters from the charities you gave to may have already shown up in your mailbox. But if you don’t receive such a letter, can you still claim

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Tax

Taxes Associated with Moving Homes

When you retire, you may think about moving to another state — perhaps because the weather is more temperate or because you want to be closer to family members. Don’t forget to factor state and

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Financial Tid-Bits

Home Office Tax-Deductions Requirements

With so many people working from home, they may refer to their workspaces as “home offices.” But do those spaces qualify them for home office tax deductions? Indeed, there are specific requirements workspaces must meet

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Financial Advisor handing over keys to a car
Tax

Tax Benefits of Company Cars

One of the most appreciated fringe benefits for owners and employees of small businesses is the use of a company car. This perk results in tax deductions for the employer as well as tax breaks

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