Poole Brooke Plumlee, P.C.

08/21/2023

Today's historically large estate and gift tax exemption ($12.92 million/per person) is set to expire at the end of 2025. Many of our clients are already planning gifts, both outright and in trust to utilize their large exemption before it resets back to 2017 levels. As you can see from the following article, the estate/gift tax savings of utilizing your exemption before 2026 are substantial. Estate and gift tax planning can be complex, particularly if closely held businesses are involved. Don't wait to the last minute to plan for your family. Contact Laura S. Douglas and our Trusts and Estate practice for your estate planning.

Dynasty trusts can shield wealth before the Trump tax cuts expire.

05/03/2023

As the recent Wall Street Journal article points out, if you die without a Will, your property may not go to the family members you intend to receive it. It is particularly important in blended families to have a Will. And if you want to benefit a charity or have your assets pass to someone other than your heirs under Virginia law, you should have a Will.

If you need a Will or other estate planning, please contact Laura S. Douglas, Esq. and our Trusts & Estates team for a free initial consultation: Justine Redmond, Trusts & Estates paralegal at 5757-552-6058

Most Americans don’t have wills, leaving estate planning to a complicated range of state laws.

03/14/2023

Like-Kind Exchanges To Be Limited: Last week the Treasury Department released the Biden Administration’s tax proposals. Within the “Green Book’s” 226 pages, the Administration proposes a limitation on “like kind” exchanges or also called 1031 exchanges. Under current law, owners of appreciated real property used in trade or business or held for investment can defer gain on the exchange of real property of a “like-kind”. Under the Biden Administration’s proposal this deferral of gain would be limited to $500,000 for individual taxpayers and $1 million for married taxpayers filing a joint return. The proposal, if passed by Congress, is set to be effective for like-kind exchanges occurring after December 31, 2023.
If you are contemplating a like-kind exchange this year, it will be important for you to keep an eye on the tax legislation as it moves through Congress and plan for your transaction to close and all of Section 1031’s requirements met before the end of the year. If you need legal assistance with your like-kind exchanges, please contact Laura S. Douglas at 757-552-6086.

02/07/2022

Is Estate Planning on Your To Do List for 2022?

Many of us have already made and given up on our New Year’s Resolutions for diet and exercise now that February is here. Financial goals, however, are different and are much easier to revisit on a monthly basis. On many financial to-do lists for 2022 is estate planning. A Gallup poll in June of 2021, found that only 46% of all Americans have a Will. As expected this number increases with age, with 53% of those age 50-64 and 76% of those over 65 having a Will.

But estate planning involves more than just drafting a Will or Trust. Estate planning involves reviewing your assets, determining your beneficiary designations for financial accounts, retirement assets, and life insurance, designating someone to make medical decisions for you under an Advance Medical Directive, designating an agent to manage your financial assets under a Power of Attorney; and deciding how to provide for your family in the event of your death. If you have minor children, you also need to designate a guardian under your Will.

Estate planning also involves planning for short term or long term incapacity. According to the CDC, about 12% of middle aged adults (ages 45-64) will experience cognitive disability. That number is only slightly less at 10.6% for younger adults (ages 18-44). Thus, planning for incapacity is important no matter what your stage of life.

If one of your financial goals for 2022 is estate planning to safeguard your family, contact Laura Douglas and her Trusts and Estates team to schedule a free initial consultation.

12/16/2021

Planning to write a check to your favorite charity before year-end? That’s fabulous – but there may be a better way to help your favorite charity and reduce your income taxes at the same time! Call us to schedule a discussion about the most tax-advantaged ways to make charitable contributions.

New rules for 2021 provide extra tax deductions for charitable giving. But some older rules are worth reviewing too. Here are charitable-deduction strategies to consider before the year ends.

12/06/2021

We work with clients from age 18 to over 100 to make sure their estate plans accomplish their objectives. Please contact Laura Douglas and her Trusts & Estates team, paralegals, Amy Popp and Justine Redmond, to schedule a consultation.

Young adults are acting to get their affairs in order, citing unease over the pandemic. Costs vary widely.

07/12/2021

Each week we will publish the IRS’ Hot Topics for the week as posted through the IRS Newswire, Guidewire, e-News and Tax Tips. These are the IRS’ Hot Topics for the Week of 7/2/21.

1) Errors employers should avoid when requesting advance payment of employer credits: a) missing or inaccurate employer identification number; b) check only one box for the applicable calendar quarter; c) check only one box for Part 1, Line A, employment tax return type; d) complete Part 11, Lines 1-9 using actual dollar amounts for credits and advance requested; e) Part II, Line 6, federal tax deposit reductions, cannot be a negative number. It must be a positive number; f) check the math; g) sign the form; h) ensure the person signing the form is authorized to do so; i) fax completed Form 7200 to 1-855-248-0552. Forms 7200 sent by mail will not be processed;

2) The IRS extends the safe harbor for renewable energy projects;

3) Required minimum distributions (RMDs) from traditional IRA’s and other qualified retirement plans aren’t suspended in 2021 as they were in 2020;

4) Hobby activities are a source of income. A hobby is any activity that a person pursues because they enjoy it and with no intention of making a profit. This differs from those that operate a business with the intention of making a profit. In determining whether the activity is a business or hobby, taxpayers must consider nine factors: a) whether the activity is carried out in a businesslike manner and the taxpayer maintains complete and accurate books and records; b) whether the time and effort the taxpayer puts into the activity show they intend to make it profitable; c) whether they depend on income from the activity for their livelihood; d) whether any losses are due to circumstances beyond the taxpayer’s control or are normal for the startup phase of their type of business; e) whether they change methods of operation to improve profitability; f) whether the taxpayer and their advisors have the knowledge needed to carry out the activity as a successful business; g) whether the taxpayer was successful in making a profit in similar activities in the past; h) whether the activity makes a profit in some years and how much profit it makes; i) whether the taxpayers can expect to make a future profit from the appreciation of the assets used in the activity;

5) IRS extends tax relief for employer leave-based donation programs that aid victims of the COVID-19 pandemic;

6) The IRS added a bank account update feature to the Child Tax Updated Portal, to update bank account information for direct deposits of the monthly Child Tax Credit payments;

7) The IRS continued its “Dirty Dozen” tax scams: a) fake charities; b) immigrant/senior fraud; c) Offer in Compromise “mills”; d) unscrupulous tax return preparers; e) unemployment insurance fraud; f) syndicated conservation easements; g) abusive micro-captive arrangements; h) potentially abusive use of the US-Malta tax treaty; i) improper claims of business credits; j) improper monetized installment sales.

If you find yourself having difficulties with the tax authorities, we recommend seeking experienced, local, professional assistance. Over the past two decades, the tax attorney and IRS enrolled agent at Poole Brooke Plumlee, P.C. have helped thousands of individuals and small businesses resolve their tax problems. If you have a tax or business matter that we can assist you with, we hope that you will reach out to us.

The information contained herein does not constitute a tax opinion or tax advice. To obtain advice specific to your matter, please contact a tax professional. No attorney-client relationship shall be established unless and until a retainer agreement is executed between you and this law firm.

07/06/2021

Congratulations to Laura Douglas, Poole Brooke Plumlee's newest attorney, for being admitted to the Maryland State Bar!

Laura is the head of PBP's Trusts, Estates, and Elder Law Department. She earned her Bachelor's of Arts in Political Science and Business Administration from Austin College, then earned her Juris Doctorate from Southern Methodist University. Years later, Laura earned her Masters of Law in Taxation from Georgetown University Law Center.

Give Laura a call at Poole Brooke Plumlee today for all of your Trusts, Estates, and Elder Law needs.

07/01/2021

06/25/2021

Got a tax question? Poole Brooke Plumlee, P.C. can help!

Each week we will publish the IRS’ Hot Topics for the week as posted through the IRS Newswire, Guidewire, and Tax Tips. These are the IRS’ Hot Topics for the Week of 6/21/2021:

1) The IRS unveiled an online “Non-filer Sign-up Tool”, designed to help eligible families who don’t normally file tax returns, to register for the monthly Advance Child Tax Credit payments, which are scheduled to begin on July 15th. The payments will be up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 through 17.

2) Backup withholding is a federal tax on income that otherwise typically doesn’t require tax withholding, such as 1099 and W2-G income. Backup withholding rate is a percentage of a payment; the current percentage is 24%. Payments subject to backup withholding include: interest payments, dividends, payment card and third-party network transactions, patronage dividends (but only if at least half the payment is in money), rents, profits or other gains, commissions, fees or other payments for work done as an independent contractor, payments by brokers, barter exchanges, payments by fishing boat operators (but only the part that is paid in actual money and that represents a share of the proceeds of the catch), royalty payments, gambling winnings (if not subject to gambling withholding), taxable grants and agriculture payments. Some examples of when the payer has to deduct backup withholding are: If a payee has not provided the payer a Taxpayer Identification Number (TIN) or if the IRS notified the payer that the payee provided a TIN that does not match their name in IRS records.

3) Section 3101 of the Taxpayer First Act requires certain exempt organizations to file information and tax returns electronically for tax years beginning after July 1, 2019. Private foundations required to file Form 4720, are included in the electronic filing mandate.

4) IRS recommends that businesses file their payroll tax returns electronically.

5) The IRS will resume normal collection activities, such as sending balance due notices, beginning on June 15, 2021. Taxpayers who fail to respond to these notices could be subject to levies or Notice of Federal Tax Lien filings beginning on August 15, 2021.

6) Notifications to the Department of State (DOS) to exercise their authority to revoke the passports of taxpayers with seriously delinquent tax debit that they fail to pay will resume on July 15, 2021.

7) Automated levies in coordination with other state and federal agencies, including: Federal Payment Levy Program (FPLP), State Income Tax Levy Program (SITLP) and the Municipal Tax Levy Program (MTLP) will start on July 15, 2021. Automated levies in coordination with the Alaskan Permanent Fund Dividend Program (AKPFD) will begin on August 15, 2021.

If you find yourself having difficulties with the tax authorities, we recommend seeking experienced, local, professional assistance. Over the past two decades, the tax attorney and IRS enrolled agent at Poole Brooke Plumlee, P.C. have helped thousands of individuals and small businesses resolve their tax problems. If you have a tax or business matter that we can assist you with, we hope that you will reach out to us.

The information contained herein does not constitute a tax opinion or tax advice. To obtain advice specific to your matter, please contact a tax professional. No attorney-client relationship shall be established unless and until a retainer agreement is executed between you and this law firm.

06/24/2021

06/10/2021

Find and connect with Virginia Beach's best Workers Compensation Attorneys. Hand picked by an independent editorial team and updated for 2021.