Omar Aswat - Chartered Tax Advisor’s Post

Inherited IRA’s. Do you have an obligation to start withdrawing from the account?? Yes… but there are variety factors which determine when and how much. This is something we do for our clients all the time. For those of you who might be interested, David provides a very nice overview from a big picture perspective.

While the FBR has officially introduced the SRO for the Active Taxpayer List (ATL), whereby taxpayers who fail to file their TY 2024 returns will be marked as non-filers starting October 1, 2024. However, FBR's IRIS portal, which is essential for filing returns, has been down intermittently, leaving many taxpayers frustrated as the September 30 deadline looms. I've been receiving calls, and messages, from friends, colleagues, and industry counterparts facing this issue. The portal was intermittently down yesterday as well, adding to the stress during this critical period. While it's understandable that systems can face technical issues, it is crucial that FBR ensures uninterrupted access to the IRIS portal, especially in the last days before the deadline. Taxpayers rely on the platform to meet their obligations, and FBR's expectations to file by September 30 should be matched by a reliable and fully operational system. FBR must take immediate notice of this issue and ensure that the IRIS portal is functioning smoothly and without interruption for the remaining filing period. #TaxFiling #FBR #ActiveTaxpayerList #TaxCompliance #PakistanTax #IRISPortal #FBRNotice

SMSFs and public trading trusts: More** lessons from days gone by A unit trust is often an attractive investment vehicle for taxpayers, as it can offer many similar benefits to a corporate structure, with the following additional benefits not available to companies: (a) access to the general CGT 50% discount (33% for unit trusts where units are owned by SMSFs); (b) the ability to issue units with different rights to income and capital; (c) no requirements for formal disclosure to ASIC and other regulatory bodies; Full post this week linked here: https://buff.ly/3Isr3R5 #SMSF #unittrust #SistersofMercy #bethechange #viewlegal #matthewburgess

A few planning notes on the new FHSA account - 1) Tax deductible contributions can continue to be made to the account after a first home purchase. Key is that you must not have made a qualifying withdrawal from the account in order to be able to do so. 2) On the passing of an FHSA account owner where the named beneficiary is someone other than a spouse or common law partner, the proceeds of the account will be taxable to the recipient. 3) If an individual gifts funds to their spouse or common law partner who then uses the funds to make and FHSA contribution, attribution rules will not apply. 4) If the FHSA is not used for a qualifying first home purchase, the funds can be transferred directly to the owners RRSP without affecting the holder's RRSP contribution room.

What types of trusts can own stock in an S corporation? The three most common types of trusts used to hold S corporation stock or membership interests are a grantor trust, a qualified subchapter S trust (QSST), and an electing small business trust (ESBT). ESBT In general, a trust may qualify as an ESBT if it meets the following criteria: The trustee of the trust files an election with the IRS within a certain time frame. The beneficiaries of the trust are all permissible beneficiaries under the Internal Revenue Code Advantages of an ESBT are that they are not subject to the single beneficiary and mandatory distribution requirements of a QSST. In addition, because of certain phaseout deduction limitations that apply to individuals but do not apply to an ESBT, holding S corporation stock in an ESBT could result in income tax savings. When dealing with S corporation stock, it is essential to follow the S corporation requirements to ensure that the corporation's S election does not terminate and result in disastrous tax consequences. If you currently own shares of stock in a business being taxed as an S corporation, call us to start forming a plan about what will happen to your business at your passing. Your loved ones and employees will thank you. Schedule a free 15-minute call to get started >> https://lnkd.in/eExjDXFM #bydesignnotbydefault #hartmannlawllc #njestateplanningattorney #estateplan #wills #trusts #powerofattorney #healthcaredirective #guardians #assetprotection #legacy #familylegacy #njmom #njdad #protectyourfamily

💡 Did you know? If you’ve received #CaliforniaQualifiedStockOptions (CQSOs) from your employer, you might be eligible for a special #taxexclusion! 🎉 To claim this exclusion, your #earnedincome from the corporation granting the CQSO must be $40,000 or less in the year you exercise the option. This is a fantastic tax benefit designed to help lower-income employees when they cash in their stock options. 💼 🔑 Example: If your total earned income, including wages and stock options, is under $40,000, you can exclude some of the income from exercising these options from your #Californiastatetaxes. But if you earn more, the exclusion won’t apply, and the income will be fully taxable. Understanding these rules can make a big difference when planning your financial future, especially in industries that often provide stock options! 📈 #TaxTips #CaliforniaTax #StockOptions #FinancialPlanning #TaxExclusion #EmployeeBenefits #TaxKnowledge #CQSOs #Finance #TaxStrategies

Learn what happens to your TFSA after death as well as the tax implications and options for successors or beneficiaries.

If you over-contribute to your TFSA, CRA will charge a penalty of 1% of the highest excess amount in the month for each month you are over the limit. To avoid over-contributing, keep track of your annual limit and your contribution history. The annual limit can change each year and unused contribution room can be carried forward from previous years. The annual TFSA dollar limit for 2024 is $7,000 which is indexed to inflation.

Learn what happens to your TFSA after death as well as the tax implications and options for successors or beneficiaries.

🚨 Thinking about moving your TFSA? Be cautious, or the CRA might come knocking! Transferring your TFSA incorrectly can lead to costly penalties. Our latest article highlights the importance of understanding the rules and keeping your contribution records up to date to avoid any unpleasant surprises from the CRA. Learn how to navigate your TFSA transfers safely and avoid overcontributions. https://loom.ly/uVcg7OU #TFSA #TaxTips #FinancialPlanning