Title Details

Introduction.

RECENT TAX LAWS AFFECT TAX PLANNING FOR THIS DECADE.

Chapter 1: Important Tax Acts for This Decade.

Rate Reductions, Tax Credits, and Deductions.

New 10 Percent Income Tax Bracket.

Reduction in 28 Percent and Higher Tax Rates.

Upper-Income Individuals Won’t Lose Deductions.

Personal Exemptions Won’t Be Lost.

Marriage Penalty Relief.

The Bottom Line.

Child Tax Credit.

Adoption Credit.

Dependent Care Credit.

Alternative Minimum Tax.

Investment Changes.

Long-Term Capital Gains.

Reduced Dividend Rates.

Education Reforms.

Education IRAs.

Section 529 Qualified Tuition Programs.

Employer Education Assistance.

Student Loan Interest Deduction.

Deduction for Qualified Higher Education Expenses.

Retirement Plan Changes.

Increase in Benefit Limit.

403(b)/457 Changes.

Vesting of Employer Contributions.

Increased Compensation Limit.

Increased 401(k) and SIMPLE Plan Deferrals.

Catch-Up 401(k) and SIMPLE Plan Deferrals.

403(b) and 457 Plans.

Larger IRA Contributions.

New IRA/Employer Plan Combination.

New Roth IRA/Employer Plan Combination.

Rollovers.

Rollover Eligible Plans.

Rollover of After-Tax Contributions.

Spousal Rollovers.

Tax Credit for Plan Contributions.

Employer Provided Retirement Planning.

Required Minimum Distributions.

Plan Loans to Owner-Employees.

Small-Business Credit for Plan Start-Up Costs.

Waiver of User Fees.

“Top-Heavy” Rules.

Increased Deduction Limits.

Impact of Reduced Capital Gains and Dividend Tax Rates.

Estate Tax Changes.

Phase Down of the Estate Tax.

Loss of Credit for State Death Taxes.

Loss of Full Basis Step-Up.

More Conservation Easements Deductible.

Qualified Domestic Trusts.

Installment Payment of Estate Taxes.

Repeal of Estate Tax Break for Family Businesses.

What ’s Next.

Chapter 2: Investments and Stock Options.

Capital Gains.

Favorable Rates.

Exceptions to the 15/20 Percent Rates.

No More Advantage for Five-Year Gains.

Effect of Past Election to Get the 18 Percent Rate.

Netting Rules.

Capital Losses.

Wash Sale Rule.

Protecting and Postponing Stock Gains.

Passive Activity Losses.

Careful Record Keeping: Identification of Securities.

Dividends.

Mutual Funds and REITs.

Preferred Stock.

Impact on Short Sales.

Impact on Margin Accounts.

Impact on Foreign Tax Credit.

Impact of Reduced Tax Rates on Investment Allocation.

Tax-Exempt and Taxable Bonds.

Taxable “Tax-Exempt” Bonds.

Bond Premium or Discount.

Florida Intangibles Trust.

Nonqualified Stock Options.

Incentive Stock Options.

Idea Checklist.

Chapter 3: Retirement Planning.

Employer Plans.

Qualified Retirement Plans.

Defined Contribution Plans.

Defined Benefit Pension Plans.

Your Resources.

Keogh Plans.

Simplified Employee Pension Plans.

New Tax Credit for Retirement Saving.

Charitable Remainder Trusts.

Tax-Deferred Annuities.

Split-Dollar Life Insurance.

Universal Variable Life Insurance.

Professional Retirement Services.

Social Security.

Required Retirement Plan Distributions.

Idea Checklist.

Chapter 4: Tax Advantages of Home Ownership.

Tax Benefits of Owning a Home.

Mortgage Interest.

Home-Equity Loans.

Vacation Homes.

Rental Properties.

Home Office Deduction.

Personal Residence Trust.

Home Sales.

Principal Residence Gains Exclusion.

Home Purchases.

Real Estate Taxes.

Mortgage Points.

Idea Checklist.

Chapter 5: How to Maximize Savings for Education.

Qualified Section 529 Tuition Programs.

What Expenses Qualify?

Gift and Estate Tax Breaks, Too.

Coverdell Education Savings Accounts.

Impact of Lower Capital Gains and Dividends Taxes.

Roth IRAs.

Traditional IRAs.

Education Tax Credits.

HOPE Scholarship and Lifetime Learning Credits.

U.S. Savings Bonds.

Home-Equity Loans.

Student Loans.

Relatives.

Income Shifting and Capital Gains.

Tuition Deduction.

Employer Education Assistance.

Idea Checklist.

Chapter 6: Estate Planning Ideas.

How the Estate and Gift Tax Works.

Amounts Exempt from Tax.

Gift and Estate Tax Rates.

Planning for Phase-Down and Repeal of the Estate Tax.

Draft a Will.

Review How Your Property Is Owned.

Consider State Death Taxes.

Give Gifts.

Valuation Discounts.

Consider Trusts.

Credit Shelter or Family Trust.

Life Insurance Trust.

Grantor Retained Annuity Trust.

Qualified Personal Residence Trust.

Dynasty Trust.

Charitable Remainder Trust.

Charitable Lead Trust.

Intentionally Defective Trust.

Qualified Domestic Trust.

Stock Option Trust.

Effect of Reduced Tax Rates on Dividends.

Give a Roth IRA.

Pay Gift Taxes Now.

Idea Checklist.

YEAR-END TAX SAVING STRATEGIES.

Chapter 7: Quick Planning Guide.

Tax Reduction.

Tax Deferral.

Income Shifting.

Year-End Capital Gains Checkup.

Year-End Alternative Minimum Tax Diagnosis.

Chapter 8: Accelerating Deductions.

State and Local Taxes.

Interest.

Business Interest.

Investment Interest.

Passive Activity Interest.

Student Loan Interest.

Personal Interest.

Medical Expenses.

Charitable Contributions.

Property Donations.

Substantiation Requirements.

Deferred Giving.

Casualty Losses.

Miscellaneous Itemized Deductions.

Moving Expenses.

Idea Checklist.

Chapter 9: Deferring Income.

Year-End Bonuses.

Deferred Compensation.

Stock Options or Stock Appreciation Rights.

Treasury Bills and Bank Certificates.

Dividends.

Installment Sales.

U.S. Savings Bonds.

Annuities.

Individual Retirement Accounts.

401(k) Plans.

Shifting Income to Family Members.

Chapter 10: Year-End Planning for Business Owners.

Year-End Edge for New Depreciation and Expensing Allowances.

Increased Expensing.

Bigger Tax Advantages for Business Automobiles.

Retirement Plans.

Bonuses and Deferred Compensation.

Income Deferral or Acceleration.

AMT Planning.

Personal Holding Company Tax.

Continuation Planning.

Buy-Sell Agreements.

Deferred Compensation.

Covenant Not to Compete.

Earn-Out (Contingent Sale Price).

The Importance of Early Planning.

Don’t Wait to Plan!

C Corporation versus S Corporation Comparison.

A NUTS-AND-BOLTS REVIEW.

Chapter 11: Basic Tax Concepts.

Gross Income.

Adjusted Gross Income (AGI).

Modified Adjusted Gross Income.

A Tax Credit or a Deduction.

Taxable Income.

Marital Status.

Marginal and Effective Tax Rates.

Social Security Taxes.

Marriage Penalty.

Accountable Plan.

Tax Effects of Alimony.

Social Security Taxes for Domestic Employees.

Estimated Tax Payments.

Alternative Minimum Tax.

Calculating AMT.

January Tax Strategy Idea Checklist.

Conclusion.

About the Authors.

Index.