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Important IRS Update: Significant Interest Penalty Increase for Tax Underpayments
The Internal Revenue Service (IRS) has recently announced a critical change that could significantly impact taxpayers who underpay their taxes. This update is particularly relevant as we approach the next tax filing season. Previously, the IRS charged a 3% interest penalty on estimated tax underpayments. However, this rate has now been increased to a substantial
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Will Inflation Hurt Stock Returns? Not Necessarily
Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks. A look at equity performance in the past three decades does not show any reliable connection between periods of high (or low) inflation and US stock returns. Since 1993, one-year returns on
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Maximize Your Charitable Impact with These Four Strategies
As the year draws to a close, it’s a perfect opportunity to rethink how you give to charity. This is important for managing how much tax you pay and how much help reaches those in need. Here are four effective strategies: Need Guidance? Reach Out to Us! These strategies are just a starting point. There
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Summer Wrap Up: Estate Planning For Your Vacation Homes
The close of another summer is a great time to think about your future plans for any family-owned vacation homes. It can be really hard to sell a property where it requires approval from all children, and it’s often difficult to make these “equally split” arrangements work.
(Photo Credit: gsacpas.com)
Start by thinking about your goal for the home: do you want it sustained for future generations, do you want it to become the property of just one or two children, or do you not have anyone to establish as the asset recipient at all? These are important questions that will help guide the future of your vacation home.
Trusts can be a great way to manage the future of vacation homes. They can be used to help pay for expenses or create a usage schedule, which is especially helpful when there could be multiple owners. To figure out the proper amount to put aside for expenses, you can create a list of what’s needed on an annual basis, including property taxes, insurance, routine maintenance, and repairs. This can help to eliminate arguments later on.
In the trust, it’s also important to outline the rules under which the house can be sold. This should be done even if there are no immediate plans to sell the house. Talk with an estate planning attorney to determine the best way to structure your vacation home future plans and possible trust. Reach out to us at info@lawesq.net or over the phone at 732-521-9455.