Merline & Meacham, P.A.

06/09/2026

Donor-advised funds (DAFs) have become increasingly popular among those who want to simplify their charitable giving while maximizing tax efficiency. A DAF is a charitable investment account typically managed by a financial institution or an independent sponsoring organization. Contributions are generally deductible in the year they’re made, even if the funds are distributed to charities in future years. Assets you contribute to a DAF are removed from your taxable estate. Plus, in your estate plan, you can designate your DAF as a beneficiary to receive assets upon your death, ensuring continued charitable giving in your name. Contact us to discuss how a DAF might fit into your estate plan.

https://www.merlineandmeacham.com/2026/05/06/if-youre-charitably-inclined-your-estate-plan-can-benefit-from-a-donor-advised-fund/

06/08/2026

LLC and LLP owners: Can you deduct your business losses this year? The answer may depend on whether your activity is considered passive according to the IRS’s passive activity loss rules.
Under these rules, you generally can use passive losses only to offset income from other passive activities. If you meet certain “material participation” criteria, however, you may be able to offset LLC or LLP losses against nonpassive income, such as wages, interest, dividends and capital gains — but the rules can be complex, especially for limited partners.

Contact us for guidance on tracking your participation hours, applying the material participation test and maximizing business loss deductions.

https://www.merlineandmeacham.com/2026/05/06/material-participation-why-it-matters-for-llp-and-llc-owners/

06/05/2026

In today’s digital world, estate planning goes beyond physical property and financial accounts — it must also address your digital assets. From online financial accounts to social media profiles, cloud storage and cryptocurrency, these assets can hold both financial and sentimental value. Without proper planning, your loved ones may face significant legal and logistical challenges in managing them. One option is to designate a trusted family member or friend as a “digital executor.” His or her role is to carry out your instructions, access accounts and ensure that digital property is handled appropriately. Contact us to learn more about how to address your digital assets in your estate plan.

https://www.merlineandmeacham.com/2026/05/06/more-than-just-0s-and-1s-accounting-for-digital-assets-in-your-estate-plan/

06/03/2026

Growing small businesses may trigger the ACA’s play-or-pay provisions. These rules apply to applicable large employers (ALEs), which are those with 50 or more full-time employees, including full-time equivalents (FTEs).
ALEs must offer full-time employees and their dependents minimum essential coverage that’s affordable and provides certain minimum value. For 2026, the penalties for noncompliance generally are 1) $3,340 per full-time employee, excluding the first 30, for not offering coverage, and 2) $5,010 per full-time employee who receives a premium tax credit, for offering coverage that doesn’t meet the affordability and minimum value requirements.
Contact us to discuss your obligations.

https://www.merlineandmeacham.com/2026/05/06/aca-penalties-may-still-apply-and-theyre-increasing-for-2026/

06/02/2026

Two trust types can be used together to meet your philanthropic goals and leave a legacy for your family: a charitable remainder trust (CRT) and a wealth replacement trust (WRT). The strategy begins with contributing assets to a CRT. As the CRT’s income beneficiary, you use the regular income stream you receive to fund the WRT. The WRT then purchases a life insurance policy that will ultimately benefit the beneficiaries you name. When you die, the CRT’s assets pass to the charity you’ve selected. At the same time, the insurance proceeds (which are excluded from your taxable estate) are paid to your WRT, which distributes them to your beneficiaries based on the trust terms you established.

https://www.merlineandmeacham.com/2026/05/06/use-a-crt-and-a-wrt-in-tandem-to-achieve-two-estate-planning-goals/

05/29/2026

Companies that engage in research and development activities may qualify for a federal tax credit for some of those expenses. The research credit is complicated to calculate, and not all research activities are eligible. But the tax savings can be significant. Certain taxpayers may even be able to use the credit to offset employer-paid payroll taxes or the owners’ alternative minimum tax obligations.
We can help you navigate the complexities of claiming this credit, including how it works, which costs may qualify and how it interacts with the deduction for research and experimentation costs. Contact us to discuss your business’s eligibility and quantify the potential benefits.

https://www.merlineandmeacham.com/2026/05/06/faqs-about-the-research-credit/

05/28/2026

Life insurance can provide peace of mind. But if your estate is large enough that estate taxes are a concern, it’s important not to own the policy at death. The policy’s proceeds will be included in your taxable estate. To avoid this result, you can create an irrevocable life insurance trust (ILIT) to hold the policy. But a time may come when you no longer need the ILIT. Does its irrevocable nature mean you’re stuck with it forever? Maybe not. Depending on the ILIT’s terms and applicable state law, you might be able to pull a life insurance policy out of an ILIT or even unwind the ILIT entirely. Options may include allowing the policy to lapse or swapping the policy for cash or other assets.

https://www.merlineandmeacham.com/2026/05/06/an-ilit-has-many-benefits-but-options-are-available-to-undo-it/

05/25/2026

05/22/2026

How you capitalize your C corporation isn’t just an accounting matter — it’s a tax-saving opportunity. You can set up funds supplied by shareholders as either capital contributions (equity) or loans (debt).
Future withdrawals by equity investors may result in double taxation. Conversely, repayments of shareholder loans are generally tax-free, while interest payments are taxable to the shareholder and deductible by the corporation. This setup provides a more tax-efficient way to get money out of your company. However, the IRS may reclassify shareholder loans as equity if not properly structured and documented. Contact us to evaluate your options and determine what’s right for your situation.

https://www.merlineandmeacham.com/2026/05/06/debt-vs-equity-classification-counts-when-shareholders-put-money-into-their-corporations/

05/20/2026

A family limited partnership (FLP) allows you to manage and protect your wealth while gradually transferring ownership interests to your children or other heirs. You can fund the FLP with a family business, real estate, investments or other assets. Transferring FLP interests to family members removes the value of the underlying assets from your taxable estate. Although interests that are gifted rather than sold (or sold for less than fair market value) are taxable gifts, they can be shielded (in whole or in part) from federal gift tax by your gift and estate tax exemption. Additional benefits include potential income tax savings and protection from creditors. Contact us for details.

https://www.merlineandmeacham.com/2026/05/06/how-can-an-flp-fit-into-your-overall-estate-planning-strategy/