Insights

Save Your Receipts! How to document your charitable contributions to claim a tax deduction

In addition to helping nonprofit organizations perform important work, charitable contributions can be a great way to lower your income tax bill. To make sure that you can claim a tax deduction, it is important to follow several recordkeeping rules required by the IRS.

Corporate Transparency Act:
LLCs and Other Entities Required to Report Ownership and Control Information to the Federal Government, Deadlines Vary

The new federal disclosure requirements under the Corporate Transparency Act (“CTA”) will come into effect on January 1, 2024, although only certain entities (those formed in 2024) will need to report next year.  For entities formed before 2024, the deadline for reporting will be later, on January 1, 2025.

Treasury Releases Proposed Donor Advised Fund Regulations Addressing Taxable Distributions and Key Definitions

Following more than 15 years of anticipation, Treasury and the IRS have issued proposed regulations interpreting certain Internal Revenue Code (Code) provisions applicable to donor advised funds (DAFs).

IRS Releases Annual Inflation Adjustments for Tax Year 2024

The Internal Revenue Service recently released annual inflation adjustments for 2024. They include increased gift, estate, and generation-skipping transfer (“GST”) tax exemptions and annual gift tax exclusions, increased retirement account limits, and new income tax brackets.

Massachusetts Tax Relief Bill Signed Into Law

On October 4, 2023, Governor Maura Healey signed into law “An Act to improve the Commonwealth’s competitiveness, affordability, and equity.”  The Act makes key tax changes to the Massachusetts estate tax and short-term capital gains, and closes the "millionaires tax" loophole for married couples, in addition to other provisions.

Understanding the New Massachusetts Millionaires Tax

The new “Massachusetts Millionaires Tax” goes into effect on January 1, 2023 and will impose a 4% surtax, in addition to the 5% flat income tax, on those who domicile or reside in Massachusetts and earn over $1 million annually.

Corporate Transparency Act:  LLCs and Other Entities Required to Report Ownership and Control Information to the Federal Government

On January 1, 2021, Congress passed the Corporate Transparency Act (“CTA”) to combat the use of corporate structures in money laundering and other financial crimes. Under the CTA, ownership interests in LLCs, corporations and other similar entities may need to be reported to the federal government. Fortunately, these reporting requirements will take effect on January 1, 2024, so there is time to prepare.

IRS Releases Annual Inflation Adjustments for Tax Year 2023

Choate's Wealth Management Group have outlined the recently released IRS annual inflation adjustments for 2023, which include increased gift, estate, and generation-skipping transfer (“GST”) tax exemptions and annual gift tax exclusions, increased retirement account limits, and new income tax brackets.

Search Funds Beware: Strategies for Avoiding PFIC Adverse Tax Consequences

Because Search Funds seek to invest in active businesses, searchers and their US investors are often surprised to learn that they may be subject to the Passive Foreign Investment Company (“PFIC”) rules for US federal income tax purposes.