Tax

The Internal Revenue Service issued the 2025 optional standard mileage rates today for computing the deductible cost of operating an automobile for business, charitable, medical, or moving purposes. The most notable change is the per mile increase for business use mileage.

Effective January 1, 2025, the optional standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 70 cents per mile driven for business use.  This is an increase from the rate

  • Continue Reading IRS Releases New Mileage Rates for 2025

    The anticipated Emergency Rule further outlining the Department of Revenue’s policies, procedures, and interpretations of Wis. Stat. Sec. 125 was just released! If you are a brewery, winery, distillery, or wholesale permittee in the State of Wisconsin this emergency rule applies to you and will impact your business. We will have more information about the Emergency Rule and its impacts in the coming days. However, for now, you may read the rule in its entirety at the link below:
    Continue Reading Emergency Rule 2419 Released by Wisconsin Department of Revenue

    Beginning January 1, 2025, Wisconsin will implement a new excise tax on electric vehicle (EV) charging stations under 2023 Wisconsin Act 121. If your business owns, operates, manages, or leases EV charging stations, here’s what you should know:

    Who Must Register: Any business delivering electricity through EV charging stations must register with the Wisconsin Department of Revenue using the Online Business Tax Registration system. This requirement applies regardless of whether:

      • The charging station is open to the public or


    Continue Reading Reminder: Wisconsin Electric Vehicle Charging Station Excise Tax and Registration Requirements Begin Jan. 1, 2025

    As local governments face growing pressure to combat climate change and promote sustainable energy, funding innovative projects remains a challenge.
    The Inflation Reduction Act of 2022 (IRA) includes an elective pay option (direct pay) that presents an opportunity for municipalities and other governmental entities to directly benefit from new and existing clean energy tax credits. Although the continued federal commitment to the IRA is uncertain, a full repeal of the IRA may prove difficult. While certain parts of the
    Continue Reading Direct Pay: How Local Goverments Can Leverage Tax Credits

    The recent Tax Court case Estate of Anne Milner Fields v. Commissioner underscores the risks involved when transferring assets to a family limited partnership or family limited liability company close to death. Approximately a month before Anne Milner Fields died, her great-nephew and agent under her durable power of attorney transferred $17 million of assets to an FLP with himself as the general partner. After her death, Anne’s estate discounted the FLP value on her estate tax return for
    Continue Reading IRS Invalidates Discounts Used in an FLP Formed Shortly Before Death

    The recent election of Donald Trump as president signals potential changes to the U.S. tax code in 2025. Some anticipated adjustments align with Trump’s proposals to extend or expand certain cuts from the Tax Cuts and Jobs Act of 2017, enacted during Trump’s first term, as well as new measures aimed at encouraging economic growth and adjusting tax policies for individuals and businesses.

    Individual Income Taxes: Lower Rates, Expanded Cuts Individual taxpayers may see a continuation of the lower
    Continue Reading What to Expect for Tax Policy in 2025 After Trump’s Election Victory

    The IRS has released inflation adjustments for the 2025 tax year, bringing changes to tax brackets, deductions, and credits that may affect taxpayers across income levels. Here’s a quick overview of the updates:

    Income Tax Brackets

    Tax brackets will shift higher to accommodate inflation, helping prevent “bracket creep.” For example, the 37% top rate now applies to incomes over $626,350 for individuals and $751,600 for married couples filing jointly. Other rates are as follows:

    • 10% for incomes up


    Continue Reading 2025 IRS Tax Adjustments: What You Need to Know

    On November 1, 2024 the Internal Revenue Service announced the cost-of-living adjustments for the various qualified retirement plan limits.  Almost all of the limits shown below have increased from last year.
     

    Qualified Plan Limit
    Cost-of-Living Adjustments

    401(k) and 403(b) elective deferral limit

    2024 – $23,000

    2025 – $23,500

    $200,000 compensation limit

    2024 – $345,000

    2025 – $350,000

    $160,000 defined benefit limit

    2024 – $275,000

    2025 – $280,000

    $40,000 defined contribution limit

    2024 – $69,000

    2025 – $70,000

    $80,000 definition
    Continue Reading 2025 Qualified Plan Cost of Living Increases, 2025 Social Security Taxable Wage Base

    As an extension filer for almost the entirety of my adult life, I’m all too well aware that while the US Treasury might give you an extension on the time to file, there is never an extension of the time to pay your taxes. This applies to income tax and excise tax – and if you’re a distillery that is subject to a bond requirement because your excise tax remittances and production volumes are high enough, ensuring you have
    Continue Reading Breaking Bond – Why Withdrawal Coverage Matters For Your Distillery

    The Wisconsin Department of Workforce Development has scheduled a public hearing on unemployment benefits and taxes for Thursday, November 21st, at 2 to 4 pm and 5 to 6 pm.

    This public hearing is online only (via webex) and requires prior registration for both sessions: registration for the 2 to 4 pm session and registration for the 5 to 6 pm session.

    Comments can also be submitted in writing via [email message](mailto: UILawChange@dwd.wisconsin.gov) or written letter to:
    Janell
    Continue Reading Public hearing on unemployment in 2024

    As the seasons shift and we head towards the end of the year, many of us reflect on change. Yet, for high-net-worth individuals and families, there’s an upcoming “sunset” that may impact their financial future—one that’s not found on the horizon but rather in Washington, D.C. The current federal estate tax changes to exemptions is set to be reduced in 2026, and this change could significantly impact how much wealth you can transfer tax-free.
    What Does the Estate Tax
    Continue Reading Preparing for the Federal Estate Tax Changes

    October 21-27, 2024, is National Estate Planning Awareness Week—a timely reminder to think about your estate plan. If you haven’t yet created an estate plan, we have a handy guide to help you understand the basics. You can check it out here: Estate Planning Guide.

    If you already have an estate plan in place, now is a great time to review it to make sure it still aligns with your needs and goals. Changes in your personal circumstances,
    Continue Reading National Estate Planning Awareness Week

    When high-net-worth individuals and families incorporate charitable giving into their estate planning, they often consider donor-advised funds and private foundations as vehicles for managing their philanthropy. Both options have unique advantages, and the choice depends on the donor’s goals, level of control, and financial considerations.

    Donor-advised funds are like charitable savings accounts. Donors contribute to a DAF through a sponsoring organization, receiving an immediate tax deduction, while funds can be invested or disbursed over time. DAFs are easy to
    Continue Reading What is the Difference Between a Private Foundation and a Donor-Advised Fund?

    In last week’s post, we talked about the Connelly case before the U.S. Supreme Court, which involved a fight between an estate and the IRS about whether money from a Key Person Insurance policy (that a company takes out on the lives of its shareholders) should count toward the company’s fair-market valuation for the purposes of estate taxes for the shareholder’s estate. The link for last week’s post can be found here.

    With the context and case last
    Continue Reading Connelly: How to Pull the Wrench from the Works

    The U.S. Supreme Court issued a plethora of impactful decisions in its last term. One that might have flown under the radar had to do with estate taxes. Though topic of taxes does not normally make for engaging content, this just might be an exception. If you are a business owner (or are related to one), you might be impacted, so please read on.

    Now that the hook is out there, let’s turn to the topic: estate taxes and
    Continue Reading Connelly: A Wrench in the Succession Planning Works?

    As we approach the 2024 election, many individuals are concerned about how potential changes in the political landscape could affect their estate plans. The upcoming election could have significant implications for gift and estate tax rates, which are set to revert to pre-2017 levels if no new legislation is passed. This blog post will help you understand the potential changes and how to prepare your estate plan accordingly.
    The Current Estate Tax Landscape
    The Tax Cuts and Jobs Act
    Continue Reading The 2024 Election & Your Estate Plan: What You Need to Know