Tax law generally prohibits a parent from shifting income from personal services to a child; however, a parent can in some cases effectively shift income to a child by transferring income-producing property to the child.
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Personal Financial Planning
Riding the Estate Planning Roller Coaster for the Next Three Years
As 2010 approaches, tax legislators and policy makers are sharply divided on a more permanent approach to taxing the transfer of wealth from one generation to the next.
When Are Payments Treated as Child Support?
Payments are child support for tax purposes if they are either so designated in the divorce or separation agreement (fixed child support) or deemed to be child support.
Using Debt to Leverage a Taxable Gift to a QPRT
A qualified personal residence trust is a trust created to own a personal residence of the grantor for the benefit of the grantor’s spouse, children, or charity. The grantor makes a gift of a personal residence into the trust while retaining a right to occupy the residence for a term of years.
Asset Protection Planning with Limited Liability Companies
The basic objective of asset protection engagements is to transfer assets to reduce or eliminate any exposure to liabilities in conjunction with the client’s estate plan or other financial concerns.
Guidance Issued on Dividing CRTs, Assisting Divorcing Couples
The IRS recently issued Rev. Rul. 2008-41, confirming that charitable remainder trusts (CRTs) can be divided into separate but equal trusts for each recipient without adverse tax consequences.
Tax Planning for Elderly Clients
With the rapid increase in the number of elderly clients, tax practitioners will need to become familiar with the special issues that affect tax compliance and planning for the elderly.
An Analysis of the New Roth 401(k)/403(b) Plans
The Roth 401(k)/403(b) provisions combine characteristics of Roth IRA and traditional 401(k)/403(b) plans in one retirement program.
Guiding Clients Through the Transfer-for-Value Maze
Editor: Michael David Schulman, CPA/PFS One of the most attractive aspects of life insurance as an estate and financial planning tool is the tax treatment of the death proceeds. Generally, the proceeds of a life insurance policy received by a beneficiary are entirely free from income tax (Sec. 101(a)(1)). However,
CPAs Can Take the Lead in Boomer Financial Planning
Baby boomers will need a wide range of financial planning services and have the money to pay for them.
What Is Long-Term Care and Who Is Responsible for Its Cost?
Long-term care is defined in the Code as “necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance or personal care services” for a chronically ill individual.
Baby Boomers Brace for Longevity Risk with Guaranteed Annuities
How can baby boomers continue to increase and protect their lump-sum nest eggs throughout their retirement years without the fear of running out of money?
Private Annuities Can Still Save Estate Taxes
Editor: Michael D. Koppel, CPA, PFS In October 2006, the IRS issued Prop. Regs. Secs. 1.72-6(e) and 1.1001-1(j), which propose to substantially reduce the income tax benefits of private annuities (REG-141901-05). Basically, the proposed regulations require the annuitant (the person transferring the property) to recognize the entire gain or loss
Gifting of a Remainder Interest in a Home
Editor: Kevin F. Reilly, J.D., CPA One of the first decisions taxpayers must make when planning their estates is what to do with the principal home. With the changing and sometimes downtrodden real estate market, this can be a difficult and time-consuming task for heirs, particularly if they do not
Tax Planning for the Use of TIPS at Retirement
For some retirees, Treasury inflation-protected securities may be a valuable source of retirement income.
The Growing Epidemic of Financial Elder Abuse (and What CPAs Can Do About It)
The incidence of financial abuse perpetrated against the elderly in the United States is growing to epidemic proportions. Because the elderly are the fastest-growing segment of our population, more and more victims and their families are beginning to report its occurrence. Most alarming, according to the National Center on Elder
Divorce and Gain Exclusion
For most couples contemplating divorce, the largest single asset at issue is their personal residence. In most situations, one spouse moves out of the residence during the separation and divorce proceedings. Tax consequences are often ignored, as the primary concern is the division of marital assets. However, focus normally returns
The Power of Gifting
Editor: John L. Miller, CPA Prospects for repeal of the estate tax became less likely after the November 2006 elections; as a result, gifting continues to be a powerful estate planning tool. Maximizing use of the annual gift tax exclusion, using the $1 million lifetime gift tax exemption and gift-splitting
When to Begin Receiving Social Security Benefits
Editor: Michael David Schulman, CPA/PFS Social Security Administration (SSA) statistics indicate that a majority of U.S. citizens elect to begin receiving Social Security benefits at age 62; see Song and Manchester, “New Evidence on Earnings and Benefit Claims Following Changes in the Retirement Earnings Test in 2000” (July 2006), available
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
