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Tax Benefits for Investments in Qualified Opportunity Funds

The Tax Cuts and Jobs Act (TCJA) introduced two elections, one to defer gain from the sale of property that is reinvested in an investment in a Qualified Opportunity (QO) Fund and another to permanently exclude gain from the sale or exchange of the investment in the QO Fund. These elections can provide substantial tax benefits for taxpayers who can satisfy the detailed and quite complex set of rules. Designation of a QO Zone.  State governors, with IRS approval, designated certain census tracts that are low-income communities as Qualified Opportunity…

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Tax Filing Reminders

March 15th 2018 calendar-year S corporation income tax returns are due 2018 calendar-year partnership returns are due Deadline for calendar-year corporations to elect S corporation status for 2019 April 15th Individual income tax returns for 2018 are due 2018 calendar-year C corporation income tax returns are due 2018 annual gift tax returns are due Deadline for making 2018 IRA contributions First installment of 2019 individual estimated tax is due First installment of 2019 corporate estimated tax is due May 15th  Forms 990 for 2018 calendar-year exempt organizations are due June…

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How to Minimize Investment Taxes

As an investor, your first priorities should be to (1) develop an asset allocation strategy that aligns with your investment objectives and risk profile and (2) select quality securities that support that strategy. Only after that’s done should you turn your attention to taxes and identify opportunities to improve the tax-efficiency of your portfolio. Here are several planning strategies to consider: Make the most of tax-advantaged accounts. Evaluate the tax-efficiency of each investment, based on factors such as dividend yields, fund turnover, and expected growth. To the extent possible, tax-efficient…

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Should Your Small Business Consider a Health Reimbursement Arrangement?

Qualifying small businesses can use health reimbursement arrangements (HRAs) without triggering penalties under the Patient Protection and Affordable Care Act (ACA). A provision added by the 21st Century Cures Act (the Act) excludes qualified small employer HRAs from the ACA’s definition of group health plan. HRAs are employer-funded plans that use pre-tax dollars to reimburse employees for out-of-pocket medical expenses and individual health insurance premiums. Previously, the IRS had ruled that HRAs are group health plans that fail to comply with the ACA’s market reforms and, therefore, are subject to a…

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