The Readers Digest version of the Fair Tax Act of 2023 is that it replaces the income tax, payroll taxes that fund Social Security and Medicare and transfer (estate and gift) taxes with a very broad sales tax. For 2025 the tax inclusive rate is 23% which translates to an add on rate, as sales
Taxes
The recent rising 7520/AFR interest rate impacts the present value of a fixed annuity, and what this has implied as yields on mid-term Treasuries rose rapidly in recent months for tax planning involving charitable gift annuities and charitable lead or remainder annuity trusts. But, of course, not every planned gift involves a fixed annuity. We
Final regs generally don’t require taxpayers to recognize gain or loss when modifying contracts to replace discontinued interbank offered rates. However, to qualify for this favorable treatment, the contract modifications must meet specific conditions related to replacement interest rates and cash payments between borrowers and lenders. Published on January 4, 2022, T.D. 9961 contains final
One of the confusing things about tax season for many taxpayers is that the rules and brackets may be very different from year to year. For example, more than 60 tax provisions posted in Revenue Procedure 2021-45—made public about a year and a half ago—apply to the current filing season’s tax return. As you pull
Federal taxability of state-issued stimulus payments is causing frustration for taxpayers and tax professionals. Indeed, whether or not state-issued stimulus payments are federally taxable may be the most asked question of this filing season. For California’s taxpayers the frustration and confusion boiled over into the Procedurally Taxing blog where guest blogger Bob Kamman, a Phoenix-area