Shop Maryland Energy Weekend Announced for 2020

The Maryland Comptroller’s office is reminding consumers of the annual Shop Maryland Energy weekend event. For 2020, this special sales tax holiday will be from Saturday, February 15 through Monday, February 17. During these three days, consumers will not have to pay the 6% state sales tax on qualifying ENERGY STAR® products, including standard size…

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No Estate and Gift Tax Clawback After Year 2025

The Tax Cuts and Jobs Act (TCJA) of 2017 temporarily increased the basic exclusion amount (BEA) to $10 million, indexed for inflation after 2011, for gifts made or estates of decedents dying after December 31, 2017 and before January 1, 2026.  After 2025, BEA will revert back to $5 million, indexed for inflation after 2011. …

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New Year, New Form W-4

The new year is upon us, and everyone is hopeful that 2020 will bring change for the better. The IRS has made a significant change that many of us will notice – a redesigned 2020 Form W-4. The W-4 is the familiar form used by employees to help employers calculate the correct amount of Federal…

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WAYFAIR – IT’S NOT JUST FOR SALES AND USE TAX

Summary The effects of the Supreme Court’s 2018 Wayfair decision on sales and use tax have received much attention (see our previous blog on the topic). In 2019, we have begun to see a trend of states adopting economic nexus standards (that resemble the new sales tax rules) for income and franchise taxes. Hawaii, Massachusetts,…

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IRS Makes Face-to-Face Visits to Taxpayers with Tax Compliance Issues

The IRS has announced that they will begin visiting taxpayers with ongoing tax compliance issues. This campaign will focus on areas where there have been a limited number of IRS officers, with Wisconsin, Arkansas, and Texas among the initial areas to be targeted. IRS revenue officers will make unannounced visits to taxpayers who have been…

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Charitable IRA rollover eases tax pain of RMDs

One downside of contributing to a traditional IRA is that, once you reach age 70½, you must begin taking required minimum distributions (RMDs) — and pay taxes on those distributions — whether you need the money or not. But if you’re charitably inclined, you can use a qualified charitable distribution (QCD) to avoid taxes on…

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Kiddie tax: New hazards, new opportunities

Despite its name, the “kiddie tax” is far from child’s play. And a change made by the Tax Cuts and Jobs Act (TCJA) puts some adult teeth into the tax. Now, children with unearned income may find themselves in a tax bracket higher than that of their parents. At the same time, the TCJA creates…

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Taxable vs. tax-advantaged: Where to hold investments

When investing for retirement or other long-term goals, people usually prefer tax-advantaged accounts, such as IRAs, 401(k)s or 403(b)s. Certain assets are well suited to these accounts, but it may make more sense to hold other investments in taxable accounts. Know the rules Some investments, such as fast-growing stocks, can generate substantial capital gains. These…

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Business Loss Deductions

Excess business loss rule may be unfavorable to you Sole proprietorships and pass-through entity structures, which include partnerships, S corporations and certain limited liability companies (LLCs), provide owners with some valuable tax benefits, such as avoidance of double taxation and the potential ability to deduct losses from the business on their individual tax returns. But…

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