Archive for January, 2010
Filing the Estate or Trust Income Tax Return
An income tax return for the decedent’s estate must be filed if the estate had income for the year of $600 or more. The estate’s income tax return is filed on IRS Form 1041. The preparer must collect all the IRS Forms 1099 and Schedules K-1 evidencing income to the estate during the year. These [...]
Noncustodial Parent Must File IRS Form 8332 to Claim Child Exemption
Under new IRS rules, for divorces finalized in 2009 and after, the noncustodial parent must file IRS Form 8332 in order to claim exemptions for children of the marriage. This situation occurs where the custodial parent agrees to allow the noncustodial parent to claim exemptions for some or all of the children. IRS Form 8332 [...]
Annual Business Reports are Now Due
Business entities that are organized in Florida or that are qualified to d0 business in Florida must now file their 2010 annual business reports. The annual business reports may be filed electronically by visiting Sunbiz and entering the entity’s document number. On your annual business report, you are required to include updated information about the [...]
Filing the Final Individual Income Tax Return
For individuals who passed away in 2009, the decedent’s final individual income tax return must be filed by April 15, 2010. Generally, the final return of a decedent should be prepared in the same manner as the return of a living person. The return is filed on IRS Form 1040. The preparer must collect all [...]
10 Things About Choosing the Right Business Entity
1. Human Error. Carrying on business without a business entity means that each of the owners is 100% personally responsible for all of the business’s liabilities. This isn’t good. A business entity (corporation, limited liability company (LLC), or limited liability partnership (LLP)) protects the owners from personal liabilities, except professional liabilities and personal wrongdoing. 2. Pass the [...]
Martin Luther King, Jr. Died Intestate
Today we celebrate the life of Martin Luther King, Jr., one of the main leaders of the American Civil Rights Movement. Dr. King devoted all of his income and talent to the movement. He died intestate, leaving less than $30,000 in his estate. Some of that money was already earmarked for the movement. This comes [...]
10 Things About Florida Homestead
1. Three-In-One. Florida homestead has special status in three different contexts: (1) ad valorem (property) taxation, (2) creditor exemption, and (3) rules of descent. In most cases, property that qualifies as homestead in one context qualifies in the other two, but not always. 2. Taxing Questions. Florida homestead is entitled to a $25,000 property tax exemption. Homestead [...]
Featured Professional: Matthew Bartolomei
With over 15 years of professional experience, Matthew brings diverse skills and perspective to wealth management, by combining his knowledge of finance and desire to help families live more meaningfully. Matthew’s practice is built on three pillars: honesty, integrity, and perspective. This approach has enabled him to build meaningful, long-lasting relationships with his clients and [...]
CBS on 2010 Estate Tax
I’ve written a number of posts about the 2010 estate tax mess (most recently, here), but Deborah Jacobs at CBS MoneyWatch has done a nice job of providing the need-to-knows in her article “Estate Tax: What You Need to Know for 2010.” Particularly imporant is what Jacobs writes about formula clauses in wills and trusts, [...]
10 Things About Selling Stock
1. The Other SEC. Whatever you call it—stock, units, interests—outside investment in a business is a security. The sale of any security is regulated by Federal and state law. This doesn’t mean that you have to “go public” through an IPO just to sell your stock, but it does mean that you have to worry about [...]