What if I Have a Contract to Reduce My Property Taxes, But I Want to Sell My Home?

A constant concern here on Long Island is the continued increase in Property Taxes and the ever-increasing cost of living.  The application for state program real estate tax exemptions (such as Basic STAR, Enhanced STAR or Veterans exemptions) may help to ease the burden, but there are instances where homeowners may not be eligible for… Read More »

Spam, Scams and Phishing

Scams are on the rise! Whether it be in the form of a phone call, email, or direct mailing, scam artists are trying to steal your personal information. The IRS has continuously warned taxpayers to think twice before providing any sensitive information to anyone, even if the request appears to come from the IRS. Scams… Read More »

What to Expect this Tax Season

This tax season will be the first which incorporates the significant tax rule changes implemented under the Tax Cuts and Jobs Act passed in late 2017 (“TCJA”). One of the goals of the TCJA was to simplify tax filings, however despite the rhetoric, the TCJA added significant complexity that may change a process you thought… Read More »

Your Guide to Fiduciary Income Tax Returns (Form 1041)

The IRS recently issued Revenue Procedure 2018-57 providing a glimpse at the tax brackets and rates to be used for 2019 tax returns (which would generally be filed in April 2020), including the tax rate tables for trusts and estates. The 2018 and 2019 tax brackets for are compared below: Trusts and Estates Percent Tax… Read More »

Tax Questions Answered: Do I Need to File a Tax Return for my Trust?

Question: I created an Irrevocable Medicaid Asset Protection Trust. Do I need to file a tax return for the trust? Answer: Appropriately named, a Medicaid Asset Protection Trust (“MAPT”) is a trust created to shield assets from Medicaid in order to preserve them for your family and generations to come. If properly drafted and funded,… Read More »

Estate Planning with S-Corporations

Estate Planning with S-Corporations With the federal and New York state tax exemptions being so high ($11.18 million and $5.25 million, respectively), clients with family businesses held in an S-corporation are less focused on reducing estate taxes and are more focused on avoiding probate and reducing future capital gains tax through obtaining a basis step-up…. Read More »

What Are The Income Tax Rates Under The New Tax Law?

  Pursuant to the new federal tax law which is commonly referred to as the Tax Cuts and Jobs Act of 2017 (hereinafter “TCJA of 2017”), the individual income tax rates have changed significantly. For tax years beginning after December 31, 2017 and before January 1, 2026, all tax rates tables have changed for individuals,… Read More »

How Does the Mortgage Interest Deduction Work?

The mortgage interest deduction allows taxpayers who own their homes to reduce their taxable income by the amount of interest paid on a loan that is secured by their principal residence or secondary residence. Starting in 2018 the Mortgage Interest Deduction is limited to interest on $750,000 of what’s called “acquisition indebtedness” – a mortgage…. Read More »

How Does the Medical Expense Deduction Work?

It is no secret that many senior citizens and individuals with disabilities are faced with significant medical costs each year, including the cost of long term care. These costs are often financially crippling for many seniors and individuals with special needs and their families. To offset the high medical expenses, many taxpayers take advantage of… Read More »