June 28, 2017

Why Trusts Are So Confusing

Why Trusts Are So Confusing

Trusts are like Calvinball except that the government is trying to play referee. It is quickly confusing.

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Generational Financial Planning Within The Kiddie Tax Limits

Generational Financial Planning Within The Kiddie Tax Limits

Families that consider generational financial planning techniques can reduce the burden of taxes on the family as a whole.

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Age Restriction on Qualified Charitable Distributions Limits Inherited IRA Gifting

Age Restriction on Qualified Charitable Distributions Limits Inherited IRA Gifting

Unfortunately the age restriction makes the charitably-inclined young, who are more likely to be in the 0% capital gains bracket, unable to make QCDs.

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Our Customized Roth Conversion Recommendations

Our Customized Roth Conversion Recommendations

I have learned there are so many more wise plans than just “top of the bracket” conversions.

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How Your Tax Is Calculated: Understanding the Qualified Dividends and Capital Gains Worksheet

How Your Tax Is Calculated: Understanding the Qualified Dividends and Capital Gains Worksheet

The 27 lines, because they are so simplified, end up being difficult to follow what exactly they do. So, for those of you who are curious, here’s what they do.

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Q&A: Can you be my executor?

Q&A: Can you be my executor?

Sadly, we have to say no. Even though we won’t be your executor, we are still here to help your executor, trustee, and loved ones through the estate maintenance and settlement process.

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Five Things You Can Control: Taxes

Five Things You Can Control: Taxes

A dollar saved on taxes is worth more than an extra dollar of income because the extra dollar of income is in itself taxable.

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Asset Location Can Significantly Boost After-Tax Returns

Asset Location Can Significantly Boost After-Tax Returns

Exact asset location depends on the percentage of a portfolio held in each of the three types of accounts as well as the percentage of the portfolio which is to be allocated to each selected sector. But the boost in after-tax returns is well worth the effort.

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6 Ways To Prevent Your Estate Plan From Ruining Your Roth IRA

6 Ways To Prevent Your Estate Plan From Ruining Your Roth IRA

Many executors, trustees, or even estate plans make careless mistakes which end up in Roth IRAs being distributed too quickly. Here’s a list of ways to prevent your estate plan from ruining your Roth.

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Radio: Tax Planning Season

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When you finish your tax preparation, it is time to begin tax planning.

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How You Take Your Inherited IRA RMD Is the Exception to the Rule

How You Take Your Inherited IRA RMD Is the Exception to the Rule

Inherited RMD rules demonstrates the power and importance of beneficiary designations and why it is so important to set them.

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How to Deduct U.S. Debt Obligations on State Tax Returns

How to Deduct U.S. Debt Obligations on State Tax Returns

Dividends and interest received from U.S debt obligations can be deducted on many state tax returns.

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RMD Mistake: Missing a Spousal Rollover

RMD Mistake: Missing a Spousal Rollover

When a spouse inherits retirement account assets, they have the right to do what is called a “Spousal Rollover” or “Spousal Transfer.” It is almost always the right option.

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RMD Mistake: Failing to Take Your RMD

RMD Mistake: Failing to Take Your RMD

The key to getting the waiver though is showing that “you are taking reasonable steps to remedy the shortfall.”

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2017 Tax Tables

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If you’re doing some tax planning this year, here is a quick guide to the brackets.

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Radio: Why Corporate Tax Rates Should Be Lowered

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David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing corporate tax rates, and why they should be lowered.

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Retirement Plan and Health Savings Plan Limits for 2017

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Every year the IRS releases new limits for how much you can contribute to Individual Retirement accounts and Health Savings accounts for the tax year.

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2017 Estate and Gift Tax Limits

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Neither party has to pay taxes on gifts up to this gifting limit, and the limit remains unchanged from 2016.

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2017 Employer-Sponsored Retirement Plan Limits

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Here are the limits for how much you and your employer can contribute to retirement accounts on your behalf.

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Radio: Should You Pay More Tax Than Legally Required?

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Is there morality that supersedes legally abiding by the tax code?

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How Much Can I Give Away to Charity This Year?

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If you give away more than 50% of this year’s income, you cannot deduct it this year, but you can carry it forward for up to 5 years.

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Roth IRAs Make Great Estate Planning Tools

at the beach

Taking the smallest distribution each year will ensure the beneficiary achieves the maximum tax-free growth of tax-free income.

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Why Would You Intentionally Realize Capital Gains?

handful of cherries

When you sell an investment that has appreciated, the IRS looks at your tax rate and taxes the gains accordingly.

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Planning for a Funeral

Planning for a Funeral

Funeral expenses are often a family’s fourth largest expense.

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Do Children Need To File A Tax Return To Fund Their Roth IRA?

Do Children Need To File A Tax Return To Fund Their Roth IRA?

The IRS does not require dependents whose gross income is only earned income to file a tax return if the amount is less than a certain amount.

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Understanding Virginia’s Tax Withholding Rules

Understanding Virginia's Tax Withholding Rules

We know how federal rules require you to either have tax withheld or make estimated payments of tax that will be due, but it is easy to forget that states have their own revenue departments and their own rules.

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Understanding the Estate Tax Return

Understanding the Estate Tax Return

The estate tax return is definitely complex, but that’s because it has to account for the multitude of special rules that only apply to a few households.

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Qualified HSA Funding Distribution

Qualified HSA Funding Distribution

There is an obscure tax rule that allows a one-time Traditional IRA-to-HSA conversion called a Qualified HSA Funding Distribution (QHFD).

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Testamentary Donor Advised Funds

colorful gift bows

An easy estate workaround is to set up a Donor Advised Fund as a Testamentary fund, meaning you aren’t funding it yet, but it will be funded upon your death.

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Understanding the Generation-Skipping Transfer Tax

Understanding the Generation-Skipping Transfer Tax

The fact that we have an 80% “generous grandparent” tax is ridiculous.

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Digital Estate Plan: Facebook Legacy Contact

Facebook Legacy Contact

Facebook added the “Legacy Contact” feature that allows you to grant a Facebook Friend access to your Facebook page after you have passed away.

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Free Advanced Medical Directives from the Virginia State Bar

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The Virginia State Bar has even made a few variations of a simplified Advanced Directive free to the public on their website.

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Mailbag: The Practical Limits of 1031 Exchanges

Mailbag: The Practical Limits of 1031 Exchanges

Using a 1031 exchange to turn investment property into residential property is possible, but it takes careful planning from the outset.

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How Cookie-Cutter Powers of Attorney Fail

How Cookie-Cutter Power of Attorneys Fail

This style of Power of Attorney certainly gets the job done, but there are a few ways that the cookie-cutter POA most frequently fails to meet people’s wishes.

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Is Margin Loan Interest Tax Deductible?

Is Margin Loan Interest Tax Deductible?

Margin loan interest is tax deductible, but the amount you can deduct is limited.

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What is a Roth Conversion?

What is a Roth Conversion?

If you don’t have retirement savings in Roth IRAs, it’s time you considered their benefits. Assets in traditional IRAs can be rolled into Roth IRAs without a withdrawal penalty.

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Government Requires 2.5 Hours of Daily Work

Government Requires 2.5 Hours of Daily Work

Without the burden of federal, state, and local taxes, you could leave your job at 2:27pm every day and earn the same salary.

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Radio Interview: The Burden of Government Taxation

Radio Interview: The Burden of Government Taxation

David John Marotta was recently interviewed on radio 1070 WINA’s Schilling Show, discussing taxation and the burden of government.

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Gifts, Taxes, and IRS Form 709

Gifts, Taxes, and IRS Form 709

Most people are unaware that giving a gift can be a taxable event because they themselves have not yet experienced the tax.

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Mailbag: How Is Capital Gains Tax Calculated?

Mailbag: How Is Capital Gains Tax Calculated?

The IRS does not do a good job of helping people understand capital gains taxes. They provide a worksheet to help you calculate it, but it has so many steps that it’s nearly impossible to figure out what’s going on.

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Tax Loss Harvesting and Wash Sales

Tax Loss Harvesting and Wash Sales

Wash sale rules need to be followed when realizing capital losses for taxes but can be burdensome to track and monitor.

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Ted Cruz’s Tax Plan

Ted Cruz's Tax Plan

More than many other candidates, Ted Cruz’s tax plan aims to fundamentally change our tax system.

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Four Things You Can Do with Your Roth Before April 15

beach sprint

If you have not yet funded your Roth account for 2015, it is not too late!

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How Roth Conversions Are Reported to the IRS

How Roth Conversions Are Reported to the IRS

The Internal Revenue Service (IRS) is notorious for misunderstanding the recharacterizations of Roth conversions.

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What Counts as Wages for the Social Security Earnings Test?

What Counts as Wages for the Social Security Earnings Test?

Contrary to the normal way of things, this time what Uncle Sam gives with the IRS, he takes away with the SSA.

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Qualified Charitable Distributions (QCDs) from IRAs

Qualified Charitable Distributions

QCDs allow individuals age 70 1/2 or older to give directly to a charity from your IRA without counting the distribution as taxable income.

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What Counts as “Boot” in a 1031 Exchange?

What Counts as "Boot" in a 1031 Exchange?

1031 exchanges can include “boot,” which is an unofficial term for other property received in the exchange.

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Radio Interview: Wills, Estates, and Beneficiaries

Live Oak

David and host Rob Schilling discuss what estate planning is, why you want to do it, and explain some of the jargon.

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2016 Employer-Sponsored Retirement Account Limits

Retirement Cash Jar

Here are the limits for how much your employer can add to retirement accounts on your behalf.

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Six Creative Beneficiary Designation Ideas

Six Creative Beneficiary Designation Ideas

These are just some examples of the creative beneficiary designations, but the important part is to dream big about what your wishes are.

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