Tax treatment

Decoding Tax Reform: Pass-Through Entities Part 1 – The 20% Deduction for Qualified Business Income

Topics: Passthrough taxation, Tax treatment

The new tax reform legislation enacts a 20% income tax deduction based on the “qualified business income” of an owner of a business structured as a sole proprietorship or pass-through entity. If the deduction can be fully utilized, it will result in a marginal rate on qualified business income of 28% for a typical taxpayer…

Decoding Tax Reform: The Transfer Tax Impact

Topics: Tax treatment, Transfer taxes

Tax reform legislation (“H.R. 1”) was signed by the President on December 20th, enacting numerous immediate changes affecting all areas of the Internal Revenue Code (“Code”), including changes to gift, estate, and generation- skipping transfer (“GST”) taxes. Effective January 1, 2018, H.R. 1 doubles the base exemption level for the gift/estate and GST tax from…

President Trump Releases Tax Proposals – Keep Calm & Plan On.

Topics: Estate planning, Tax treatment, Trusts

President Trump’s recently-released outline of his tax reform proposal mirrors his campaign promises, and his proposals can be seen as a starting point in negotiations. Achieving major tax reform is very difficult, which is why it rarely occurs. Once statutory language is drafted, and specific provisions are down on paper, there tends to be pushback…

Proposed Legislation Could Expand Multiple Employer Plan Opportunities.

Topics: Retirement security, Tax treatment

The Senate Finance Committee unanimously approved a bill that would allow unrelated employers to join “pooled employer plans,” which are multiple employer plans (“MEPs”) meeting certain requirements that are treated as single plans for ERISA purposes. The MEP proposal is included in a bill, known as the Retirement Enhancement and Savings Act of 2016, which…

The Changing Tax Paradigm – The Basics of Basis and the New Need for Life Insurance.

Topics: Capital gains, Estate planning, Grantor trusts, ILIT, Tax treatment, Trusts

Thursday, June 18, 2015WRM#15-22 The WRMarketplace is created exclusively for AALU Members by the AALU staff and Greenberg Traurig, one of the nation’s leading tax and wealth management law firms. The WRMarketplace provides deep insight into trends and events impacting the use of life insurance products, including key take-aways, for AALU members, clients and advisors.…