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The worldwide equity market tumult is creating some unique and unprecedented challenges. However, plunging asset values are presenting some rare opportunities in wealth planning that are often only seen once in a generation. Below are some strategies you may wish to incorporate into your estate and tax planning during this time.

Basic Estate Planning: Now, more so than ever, it is important to make sure your family is provided for in your estate plan. This means reviewing your current…
Continue Reading Estate and Tax Planning During Market Tumult

Due to the increase in the cost of gasoline since establishing the 2022 rates last year, the Internal Revenue Service is increasing mid-year the optional standard mileage rates for computing the deductible cost of operating an automobile for business, medical, and moving expenses.  Effective July 1, 2022, the optional standard mileage rates will be 62.5 cents per mile for business transportation, and 22 cents per mile for travel relating to medical and moving transportation expenses. These increased mileage rates…
Continue Reading Pain at the Pump: IRS Announces Mid-Year Adjustment of Business and Medical Mileage Rates

Earlier this year the IRS released proposed regulations on the SECURE ACT.   The SECURE ACT made drastic changes to the rules governing inherited retirement accounts, effective January 1, 2020, but there has been little guidance from the IRS on the Act’s provisions until now.

The SECURE ACT seemed to replace the rule that a designated beneficiary must take out a yearly required minimum distribution (“RMD”) based upon his or her life expectancy (the “Life Expectancy Rule”) with a simple…
Continue Reading Proposed Regulations on the SECURE ACT

We are often asked, “What is an estate plan?” An estate plan can mean different things depending on your unique personal and financial situation. We structure your estate plan based on many things, such as whether you are single, married, or divorced; whom you want your estate to pass to upon your death; and the complexity and makeup of your assets. Some individuals may need more estate planning, some may need less.

Here is a list of the typical…
Continue Reading What is an Estate Plan?

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An irrevocable income-only trust can be an indispensable tool when planning for retirement and long-term care expenses. It’s important to know how these trusts work, how they help you qualify for Medicaid, and how to set one up.
What Are Irrevocable Income-Only Trusts?
Irrevocable income-only trusts are used for Medicaid planning. They are a type of living trust that protects assets from being sold to cover long-term care expenses such as nursing homes. These assets are placed in a…
Continue Reading Tax & Wealth Advisor Alert: Irrevocable Income-Only Trusts, How They Can Help You Apply for Medicaid and When they Should be Avoided.

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The filing deadline to submit 2021 tax returns or an extension to file and pay tax owed is Monday, April 18, 2022. By law, Washington, D.C., holidays impact tax deadlines for everyone in the same way federal holidays do. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia for everyone except taxpayers who live in Maine or Massachusetts. Taxpayers in Maine or Massachusetts have until April 19,…
Continue Reading Tax & Wealth Advisor Alert: Reminder—April 18 is the Deadline for Individual Returns and More

In our last article, we reviewed why creating a buy-sell agreement can protect the owners of a company and help guide the process of a business succession plan. In this post, we will review how to create an exit strategy and minimize conflict when it comes time to begin to transfer the business.

PART 2 – SETTING IN PLACE AN EXIT STRATEGY WHEN THE TIME COMES AND MINIMIZING THE POTENTIAL FOR CONFLICT

Whether it’s in personal relationships or business,…
Continue Reading Transferring a Business: Exit Strategy and Minimizing Conflict

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On February 24, 2022, the Internal Revenue Service (IRS) published proposed regulations addressing the calculation and payment of required minimum distributions under qualified retirement plans (the Proposed Regulations). The Proposed Regulations are generally designed to address the changes to a participant’s required beginning date and payment of death benefits enacted under the SECURE Act.

Applicable to all plan sponsors, the Proposed Regulations update existing regulations to account for the increase in a participant’s required beginning date to age 72.
Continue Reading IRS Provides Additional Clarity on Required Minimum Distributions Calculations

Long before a closely-held business is readied for sale, it should be protected by the owners creating a buy-sell agreement. In short, every co-owned business needs a buy-sell, or buy-out agreement the moment the business is formed or as soon after that as possible. A buy-sell, sometimes called a buy-out agreement, protects business owners when a co-owner wants to leave the company (and protects the owner who is leaving). It also contemplates dealing with unforeseeable catastrophic events, such as…
Continue Reading An Educational Business Series for Success: Why Buy-Sell Agreements Are Necessary Even If You Don’t Plan to Sell Your Company Soon

Last year, multiple proposals were introduced in Congress that would have significantly altered transfer tax planning for wealthy individuals and business owners. The proposals fell flat due to razor thin majorities the Democrats hold in Congress. Even if no changes occur in the near term, on January 1, 2026, current law automatically “sunsets,” which will result in estate tax exemptions being halved.

The following is a review of a few significant transfer tax planning considerations you should consider in…
Continue Reading Transfer Tax Planning Considerations for 2022

This article is not tax advice and the discussion herein is oversimplified to relay the concept of step-up in basis. Your individual situation should be reviewed by your attorney and tax professional.

There has been a lot of discussion in Congress about what, if anything, should be done with the income tax code to address step-up in basis. Step-up in basis is a concept that affects beneficiaries who liquidate the assets of a person who passes away (“Decedent”). Not…
Continue Reading What is Step-Up in Basis & Why is it Important?

Jan. 5, 2021 – Video gaming machines that allow players to preview the outcome of particular games are illegal gambling machines, the Wisconsin Court of Appeals District I has ruled.

In JD Prime Games Kiosk, LLC v. Wisconsin Department of Revenue, 2020AP1935 (Dec. 21, 2021), the court held that even though the preview allows players to not proceed with the game, the outcome of the game was determined by chance and the machines were therefore gambling machines.
Bars,…
Continue Reading Outcome Preview Doesn’t Rescue Slot-like Video Games From Gambling Ban

By: Steimle Birschbach, LLC 2021

On September 24, 2021, we posted a blog entitled “Federal Estate Tax Law Changes Are Near” that summarized the provisions of draft legislation approved by the House Ways and Means Committee on September 15, 2021, that would have made drastic changes to the federal estate tax law. Many practitioners and political analysts expected some form of the legislation to be passed before year end. Since our blog post, the estate tax related provisions have…
Continue Reading Federal Estate Tax Law Changes – Stalled or Dead?

On November 4, 2021 the Internal Revenue Service announced the cost-of-living adjustments for the various qualified retirement plan limits. The vast majority 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

2021 – $19,500

2022 – $20,500

$200,000 compensation limit

2021 – $290,000

2022 – $305,000

$160,000 defined benefit limit

2021 – $230,000

2022 – $245,000

$40,000 defined contribution limit

2021 – $58,000

2022 – $61,000

$80,000…
Continue Reading 2022 Qualified Plan Cost of Living Increases, 2022 Social Security Taxable Wage Base

Wisconsin Governor Tony Evers has signed Senate Bill 254, which affects building permit holders and late property tax payments. The bill, which Evers signed on Friday, October 15, 2021, and is now known as 2021 Wisconsin Act 80, allows municipalities and other taxation districts to waive interest and penalties on late 2021 property tax payments. It also adds a timely payment requirement for filing certain property tax claims if payment was submitted by October 1, 2021. The Act…
Continue Reading Tax & Wealth Advisor Alert: Wisconsin to Allow Municipalities to Waive Property Tax Penalties and Extend Construction and Building Permits

On September 13, 2021, the House Ways and Means committee released its proposals to raise revenue, including increases to individual, trust and corporate income taxes, changes to retirement plan contributions and distributions, and changes to the estate and gift tax laws. We will continue to monitor this legislation and will provide relevant updates, but wanted to highlight the proposed estate and gift tax changes that may be most crucial to your immediate planning.

Good news first: There is no…
Continue Reading Disappearing Act: What You Need to Know About the Estate and Gift Tax Provisions of the House Ways and Means Committee Tax Proposals