Taxes

One of the most exciting provisions of the Build Back Better Act, to me anyway, is the opportunity that it gives for a tax free conversion to partnership for some S corporations.  There may be some people who don’t find this exciting thinking that partnerships and S corporations are both flow-through, so it is six

If Congress fails to suspend or raise the national debt limit, it would have a trickle-down effect that could put nearly a quarter of state spending at risk. A new report by the progressive-leaning Center on Budget and Policy Priorities (CBPP) says that such an event would likely mean the federal government would have to

All major provisions of the House Ways & Means Committee’s budget reconciliation tax bill would cut 2022 taxes on average for households making $200,000 or less. At the same time, the bill would raise taxes substantially for those making $1 million or more, according to a new analysis by the Tax Policy Center. The bill’s

Earlier this month, California Governor Gavin Newsom signed three laws meant to encourage more housing construction and supply, allowing some overriding of local zoning policies in order to get more affordable and racially equitable housing.  But the state’s dramatic intervention probably won’t be enough to overcome decades of anti-housing policies and practices, driven by existing homeowners who

It’s been just three short years since cannabis was legalized in Canada, but it’s already clear the nation’s exorbitant taxation on cannabis cultivators is not only unsustainable; it’s killing craft growers that are paying more in tax than they earn in margins. Earlier this month, Tantalus Labs CEO Dan Sutton outlined exactly how problematic Canada’s cannabis excise

The recently released final text of the reconciliation bill (SEC.138151) intends to subject cryptocurrency to a complex tax rule called, constructive sales. Under this proposed rule which could go into effect on January 1, 2022, cryptocurrency users could incur taxes without even selling their crypto positions.  What is a Constructive Sale? Before we talk about

These days, the IRS and Justice Department seem more intent on nabbing crypto tax dollars than owners of still secret offshore accounts. The land rush of offshore account cases started in 2008 and went on for over 10 years. But there are still secret ones out there it seems, and when the feds find them,

While the first draft of the reconciliation legislation didn’t include Biden’s proposal to eliminate the tax-free basis step-up, which included a $1 million per-person exclusion (in addition to the current capital gain exclusion for a principal residence) and exceptions for family-owned business such as farms, many voices have echoed this sentiment from The Wall Street Journal’s September 17 story, “Democrats Seek

There’s a lot of interest this year in converting traditional IRAs and 401(k)s to Roth IRAs. Some people hesitate to convert their IRAs, however, because of concerns about the confusing “five-year rule” for Roth IRAs. Future distributions from a Roth IRA are tax free when they are “qualified distributions.” Meeting the five-year rule is one

Professors Bridget J. Crawford of the Pace University School of Law and Anthony C. Infanti of the University of Pittsburgh School of Law discuss viewing the U.S. tax code through a feminist lens. This transcript has been edited for length and clarity. David D. Stewart: Welcome to the podcast. I’m David Stewart, editor in chief of Tax

Today’s column addresses questions about the earnings test and independent contractors, whether early reductions to disabled widow’s benefits are permanent and the possibility of taking spousal benefits only after early retirement benefits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc. See more Ask

Congress is debating a sharp increase in the corporate tax rate as well as other business levies this week. The Biden Administration claims only big corporations will have to fork over more cash. This episode of What’s Ahead shows how that assertion is nonsense. A ton of economic research over the years has found that

After California Governor Gavin Newsom triumphed in the recall election, he signed three controversial bills meant to increase house building and supply.  The bills limit local zoning control and override some local powers that are used to block affordable housing projects.  Will these provisions help solve California’s deep housing affordability crisis? There’s no question about California’s crisis.  In August, the median

New regulations issued under sections 1291, 1297, and 1298 clarify whether a foreign corporation is treated as a passive foreign investment company and whether a U.S. person that indirectly owns stock in a PFIC is treated as a shareholder. Final regs issued January 15 (and corrected March 5 and March 10) retained the basic approach and structure of

Bahrain’s government is planning to double its rate of value-added tax (VAT) to 10%, according to Bloomberg, in an effort to curb its large budget deficit. The move echoes a similar change by Saudi Arabia last year, when it tripled its rate of VAT to 15% – although, as some observers have pointed out, the

Today’s column addresses questions about the family maximum that can be collected on a single record, answering a question about working this year while applying for Social Security benefits and potential availability of divorced survivor’s benefits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning,

The revenue portion of the Build Back Better Act (BBB) that is moving along dramatically changes the landscape for transfer taxes (i.e. gift and estate). Accelerating the scheduled reduction in the unified credit from $10 million to $5 million (indexed for inflation from 2010) is most noticeable. For those of us who are fond of round numbers,

Helping people to save more for retirement is a popular idea in Congress these days. But this episode of What’s Ahead warns that a big change that just cleared a critical committee in the House of Representatives would do far more harm than good. Moreover, it would be an administrative nightmare. The proposal would force

Welcome to Fall. The season where, predicably, the weather gets cooler, the leaves change color, and Congress puts on its annual fiscal crisis. This year, we all get to watch a quadruple-header: Will Congress pass a $1 trillion—or perhaps $552 billion— infrastructure bill? Will Congress approve a massive social spending bill including major tax increases

Thanks to historic investment returns over the last year, state public pension plans are in their best shape since the Great Recession. After state pension debt grew to more than $1.4 trillion last year, two new reports estimate that gap between the total amount states have promised to retirees and what they’ve actually set aside