Merline & Meacham, P.A.

Fellow Steven (Steve) B. Gorin discusses fiduciary income tax planning, focusing on strategies to minimize income tax on trusts and estates by efficiently allocating income between trusts and beneficiaries. He highlights key considerations such as distributable net income (DNI), capital gains treatment, and the importance of evaluating tax brackets and distribution timing to optimize tax outcomes. https://lnkd.in/dvasc6a5

Fellow Steven (Steve) B. Gorin discusses fiduciary income tax planning, focusing on strategies to minimize income tax on trusts and estates by efficiently allocating income between trusts and beneficiaries. He highlights key considerations such as distributable net income (DNI), capital gains treatment, and the importance of evaluating tax brackets and distribution timing to optimize tax outcomes. https://lnkd.in/dvasc6a5

As a business owner, you may be eligible to claim home office tax deductions that will reduce your taxable income. However, it’s crucial to understand the IRS rules to ensure compliance and avoid potential IRS audit risks. If you’re eligible, there are two ways to claim deductions. With the actual expense method, you claim direct expenses, such as the cost of painting and a share of indirect expenses, such as utilities, insurance and depreciation. With the simplified method, you deduct $5 per square foot of home office space, up to $1,500. Unfortunately, employees can’t deduct home office expenses. We can help you determine if you qualify and how to proceed. https://lnkd.in/em7JMxgN

Here’s the latest ACTEC Trust and Estate Talk Podcast in which ACTEC Fellow Jennifer Jordan Mccall discusses recent trends in estate and gift tax law. https://lnkd.in/eMjsXCRh

Life insurance plays a vital role in your estate plan because its proceeds can provide for your family in the event of your untimely death. And for wealthier families, life insurance proceeds can cover any estate tax liability not covered by the current $13.99 million federal gift and estate tax exemption. But when was the last time you reviewed your policy? The amount of life insurance that’s right for you depends on your circumstances, so it’s critical to review your life insurance policy regularly. The right amount of insurance depends on your family’s current and expected future income and expenses, as well as the amount of income your family would lose should you pass away. https://lnkd.in/e-qAgkJv

If an individual taxpayer has substantial business losses, unfavorable federal income tax rules may come into play. If your business or rental activity throws off a tax loss (and many do during the early years), things can get complicated. For example, you can’t deduct an excess business loss in the current year. For 2024, an excess business loss is the excess of your aggregate business losses over $305,000 ($610,000 for married joint filers). For 2025, the thresholds are $313,000 and $626,000, respectively. An excess business loss is carried over to the following tax year and can be deducted under the rules for net operating loss (NOL) carryforwards. Contact us with any questions. https://lnkd.in/ecCM-nMk

ACTEC Fellows Matthew (Matt) R. Hochstetler and Toni Ann Kruse discuss the critical steps needed to plan for incapacity or dementia. https://lnkd.in/emEFYENs

This series examines how jurisdictional choices affect entity governance and the enforceability of charging orders for asset protection. In Part 2, ACTEC Fellows S. Gray Edmondson and George D. Karibjanian deliver a deeper analysis of the relevant case law and provide practical illustrations of how the internal affairs doctrine can impact clients. https://lnkd.in/edV3VH5d

A revocable trust is a popular estate planning tool that allows you to manage your assets during your lifetime and ensure a smooth transfer of those assets to your family after your death. Plus, trust assets bypass the probate process, which can maintain privacy. However, like any legal instrument, a revocable trust has certain disadvantages. For example, drafting the trust requires the assistance of an attorney. You’ll also need to retitle your assets under the name of the trust, which can be time consuming and may incur fees. Another limitation is that a revocable trust doesn’t provide asset protection from creditors or lawsuits during your lifetime. Contact us with questions. https://lnkd.in/eHttj9dH

Tipped workers must keep daily records of the cash tips they receive. To do so, they can use Form 4070A, Employee’s Daily Record of Tips. It’s found in IRS Publication 1244. Workers should also keep records of the dates and values of noncash tips. The IRS doesn’t require workers to report noncash tips to employers, but they must report them on their tax returns. https://lnkd.in/ebBPan8b