While generally a trust cannot get the Principal Residence Exclusion, it is possible if the trust is set up correctly and the circumstances are correct. The devil, as always, is in the details and you will want to get professional . . . .
The Standard Deduction is the amount every taxpayer can deduct from their income, and with the changes to the tax law, more taxpayers than ever will now be taking the Standard Deduction. A lesser known fact about the Standard Deduction, however, is it can be increased for those over age 65 or who are blind.
Financially savvy people know the best time to start on next year’s taxes is the beginning of this year. Your tax return is a historical document about what happened last year, so there is very little you can plan and change. Next year, however, hasn’t happened giving you control over the tax planning environment.
Waiting until April to do your taxes could cost you more than you think. Submitting your taxes early isn’t just for those expecting a big refund. Advantages of early filing include easier money management if you owe additional taxes, opportunities for greater deductions, and reducing the risk of identity theft and fraud.
The President's proposed tax revision may be interesting water-cooler talk, but you shouldn't spend much time on it. As the proposed individual income tax reforms are far from being law, there is nothing you can do to adjust your tax strategy in preparation. Still, it is fun to dissect the good and bad of the President's plan.
The benefits of giving to others are many, including health, happiness, and tax deductions. The complexities of the tax code, however, can cause unhappy surprises for those who donate without proper planning. Make sure you understand the answers to these questions before donating any property, including cars, personal items, stocks, or real estate.