December 2, 2022

December 2022 Newsletter

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Here are your Articles for December 2, 2022.

Los Angeles Voters Approve Mansion Tax

Los Angeles voters approved Measure ULA, the so-called “mansion tax,” by nearly 58% of the city’s voters.

IRS Cost-of-Living Adjustments Employee Benefit Plan Limitations for 2023

The IRS has released the 2023 cost-of-living adjustments on benefits and contributions of retirement plans and health and welfare benefit plans. Due to the increase in inflation, some of the 2023 limits reflect significant increases from the 2022 amounts, so plan sponsors should update their systems and formulas to include the adjusted limits which are effective January 1, 2023.

Portability Relief Extension via Form 706

In July, the IRS issued Rev. Proc. 2022-32 which simplified the method for obtaining late relief for failure to timely make an estate tax portability election and extending the time for filing portability returns from two years after the death of the first-to-die spouse to five years.

4 Tax Breaks for Home Improvements

Home improvements may provide sizable tax savings. But there’s a catch: You must follow the IRS blueprint. In addition to deductions for mortgage interest on loans for remodeling projects and other upgrades, certain improvements can potentially increase your tax basis in the property, count toward itemized medical expense deductions and generate residential energy credits. Here are the details.

Can You Swap Life Insurance for Long-Term Care Insurance?

Can you afford long-term care? One of the greatest threats to the financial security of a person’s retirement, as well as to the achievement of their estate planning goals, maybe a nursing home stay or other form of long-term care. Long-term care insurance (LTCI) may be a great way to protect wealth against this risk, but it’s expensive. One potential option for funding an LTCI policy is to “trade-in” a life insurance policy or annuity contract that’s no longer needed. This article looks at what’s involved.

FDIC Insurance: You Can Bank On It

“FDIC insured” is one of those rushed phrases you hear a voice-over person say at the end of banking-related television or radio commercial. But what does “FDIC” mean, anyway? This article explains what the Federal Deposit Insurance Corporation is and how it’s been a trustworthy government program for some time.

Handle with Care: The Nanny Tax Rules

If you hire domestic or household workers, you must follow complex tax laws based on whether the worker is an employee under your control or an independent contractor. Disregarding the tax rules can result in an expensive liability — even years from now. Here’s what you need to know.

Estate Tax Planning Tips for Single People

Estate planning tips are often geared toward married couples. Although many of the same principles apply to single people, singles may need to give their estate plans extra attention to maximize how much they can transfer to loved ones tax-free during their lifetimes and beyond. The Tax Cuts and Jobs Act expands those opportunities through 2025.
   

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