On Friday, March 10, 2023, Silicon Valley Bank was shut down by bank regulators.  This piece is meant to be an overview of events.  Note this is an event where next steps are being updated daily, so answers are subject to change. Information available as of March 13, 2023: What happened?  Silicon Valley Bank (SVB) […]

If you use part of your home to conduct your trade or business, you might be able to deduct certain related expenses. To qualify for the home office deduction, you must pass certain tests. You must use part of your home regularly and exclusively for your trade or business. Exclusive use means that this space […]

What are some tax considerations associated with selling a vacation home? If you sell your vacation home and wish to know the tax consequences, you must first determine whether your residence qualifies as a vacation home in the eyes of the IRS. Assuming that it does, you should know how to treat capital gains and […]

What are the tax credits and deductions relating to higher education? There are two education tax credits — the American Opportunity credit and the Lifetime Learning credit — that provide some relief to families in the midst of financing their children’s college education. There is also a federal income tax deduction for individuals who are […]

What are tax credits? A tax credit is a dollar-for-dollar reduction of your tax liability. After you’ve calculated your federal taxable income and computed the tax on it, you can subtract any income tax credits that may apply to arrive at the amount of tax you must pay or the refund you’ll receive. What’s the […]

Bigger tax credit for start-up retirement plans. The SECURE Act improves the small employer pension plan start-up cost credit in three ways for tax years starting after 2022. First, it makes the credit equal to the full amount of creditable plan start-up costs for employers with 50 or fewer employees (up to an annual cap). […]

Automatic salary deferral enrollment. For plan years beginning after 2024, the Act provides that a plan that permits salary deferrals generally will not be treated as a qualified cash or deferred arrangement or annuity contract unless it includes an automatic contribution arrangement (EACA) that satisfies these requirements: Exceptions: Automatic enrollment is not required for SIMPLE […]

Tax-free rollovers from 529 accounts to Roth IRAs. After 2023, the Act permits beneficiaries of 529 college savings accounts to make up to $35,000 of direct trustee-to-trustee rollovers from a 529 account to their Roth IRA without tax or penalty. The 529 account must have been open for more than 15 years, and the rollover […]

When thinking about whether to invest in real estate, the factors you should consider depend on what kind of purchase you’re considering and the reason you’re buying it. Real estate can help diversify an investment portfolio and serve as a hedge against inflation, but there are many ways to do that. Your reasons for buying […]

A real estate investment can be a fairly common transaction, such as the purchase of a primary residence, or it can be a complex commercial venture involving multiple investors and/or syndicates. When choosing a real estate investment, think carefully about your objectives for that investment. Your specific needs may suggest which form of real estate […]