The Low-Income Housing Tax Credit (LIHTC) is a pivotal program in the United States aimed at increasing the availability of affordable housing for low-income individuals and families. Established under the Tax Reform Act of 1986, it serves as a crucial financial incentive for developers to construct or rehabilitate rental properties that meet specific affordability criteria. … Read more
Undocumented immigrants play a significant role in the U.S. economy, contributing billions in taxes each year despite their ineligibility for many federal benefits. One area of interest is how these individuals can access certain tax credits, which can provide crucial financial relief for low-income families. This article will explore the mechanisms through which undocumented immigrants … Read more
Unrealized receivables pose a unique challenge when a new partner joins a partnership. These receivables, representing income accrued but not yet collected, require careful handling to ensure fairness among partners and compliance with tax laws. They are a crucial factor in determining the partnership’s valuation and profit-sharing arrangements. Proper treatment ensures that pre-existing partners retain … Read more
Charitable DeductionCharitable deductions allow individuals and corporations to reduce their taxable income by the amount of their contributions to qualifying organizations, encouraging support for causes like education, healthcare, and disaster relief. While the deduction undeniably fosters generosity, its role in tax policy and its implications for equity and revenue collection have sparked considerable debate. What … Read more
GSTT does not necessarily require a physical gift to occur; it applies broadly to generation-skipping transfers, which may include direct gifts, trust distributions, or transfers at death. Understanding GSTT is essential for estate planning and compliance, as this tax is designed to prevent wealth from bypassing intermediate generations to reduce estate and gift tax liabilities. … Read more
The Maryland Power of Attorney Form 548 grants authority to a representative, often an accountant, tax attorney, or trusted individual, to handle tax matters, including filing returns, negotiating with the tax office, and receiving confidential information. This form is commonly used when taxpayers require assistance in resolving tax disputes, addressing audits, or managing complex tax … Read more
Maryland property taxes play a vital role in funding community services, and understanding the system can save homeowners money. By staying informed about tax rates, the assessment process, and available exemptions, Maryland residents can better manage their financial responsibilities. Whether you’re a new homeowner or seeking to reduce your tax burden, knowledge of the state’s … Read more
The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, introduced sweeping changes to the U.S. tax code, many of which have had profound effects on charitable donations. By altering itemized deductions, increasing the standard deduction, and modifying adjusted gross income (AGI) limits for charitable contributions, the TCJA has redefined the incentives and strategies … Read more
The legalization of cannabis in Nevada has led to a significant transformation in the state’s economy, particularly in the realm of taxation. Since the state legalized recreational cannabis in 2017, the cannabis industry has not only generated substantial revenue for state and local governments but has also sparked ongoing discussions about taxation policies and their … Read more
The debate over whether tips should be excluded from taxable income has significant implications for workers, employers, and government revenue. Tips, often constituting a substantial portion of income for employees in the service industry, are traditionally considered taxable income by the Internal Revenue Service (IRS). Proposals to exclude tips from income aim to alleviate the … Read more