Tax Planning

Health Care Costs: Integral Part of Retirement Planning

Published on: February 6, 2015 | By McCulloch & Miller, PLLC

Consulting financial and tax advisers as part of planning the retirement process is essential to get the health-care piece covered. Enjoying truly golden retirement years means a lot of different things to different people, but it should include planning for long-term health care now so we obtain the end-of-life care we desire without becoming a burden on our children or the state.

According to a recent article in cincinnati.com, titled “Consider health care when retirement planning,” long-term health care may be a considerable expense during our retirement years, with most of this spent during the last three years of life.

Health care spending has outpaced inflation over the past decade—from a 6percent increase to just 2.5 percent for core inflation.

Houston Families Have Tax Advantaged College Savings Options

Published on: February 5, 2015 | By McCulloch & Miller, PLLC

There are three basic tax advantaged vehicles to help save for college: 529 plans, Coverdall Education Savings Accounts and Roth IRAs.

Saving for college? Consider three tax advantaged tools to help fund your child’s or grandchild’s education: 529 plans, Coverdall Education Savings Accounts and Roth IRAs.

A recent Forbes article, titled “How to Save for College,”reports that each of these plans allows the funds to be used for college tuition and fees, and some also permit the funds to go towards books and room and board expenses. In addition, the Coverdall accounts allow you to use the funds to pay for K-12 schooling. 529 plans have the fewest restrictions and so the broadest appeal.

Is It Possible to Take the IRS to Tax Court?

Published on: February 4, 2015 | By McCulloch & Miller, PLLC

Actually, the answer is yes. The Tax Court is an actual federal court and not, as some people think, affiliated with the IRS. At Tax Court, the IRS is a party to the matter just like the taxpayer.

If you’ve got beef with the IRS, maybe you should head to court. Didn’t think that was possible, did you?

Contrary to popular belief, the Tax Court is a real federal court and not a tribunal run by the IRS. The IRS is a party in the case just like any taxpayer in the Tax Court, says a recent Forbes article titled “Taxpayer Advocate Reports On Top 10 Most Litigated Tax Issues.”

Houston Families Should Monitor New Tax Proposals

Published on: February 3, 2015 | By McCulloch & Miller, PLLC

What should you have expected to hear during the State of the Union address in January? Key proposals from the President include the following.

President Obama addressed the country in his January State of the Union speech about key proposals he has for our government.

Forbes recently detailed some of the key proposals from the President in its article titled “President's New Tax Proposal Would Hit Wealthy, Benefit Middle Class.”

Four Rules to Know about 2015 Estate Taxes

Published on: January 27, 2015 | By McCulloch & Miller, PLLC

Here are four rules you need to know about the estate tax for 2015.

The estate tax exclusion is now $5.43 million. The federal estate tax applies only to those whose taxable estates exceed a certain amount. The U.S. has a unified gift and estate tax system, so if you make taxable gifts during your lifetime you'll use up some of this $5.43 million in advance. In addition, you will need to file a gift tax return even though you won't have to “pay” a gift tax at the time you make the gift.

The annual gift tax exclusion is still $14,000. This an annual exclusion makes most gifts nontaxable, so you can give up to $14,000 in cash or property to anyone again this year.

529 Plans and Tax Incentives for Houston Families

Published on: January 23, 2015 | By McCulloch & Miller, PLLC

“We see that as a big driver for everyone – the opportunity to put your money into the market and get that appreciation and have all those earnings tax-free when you use them for qualified expenses at a university or trade school, or wherever your child or grandchild, or whoever it is you're saving for, decides to go,” Creonte says.

If you are saving up for your child's (or grandchild's) college education, you'll want to consider a 529 College Savings Plan.

What is a 529 Savings Plan? A 529 plan lets an individual contribute after-tax dollars that are designated for qualified higher-education expenses. These expenses include tuition and fees, books, room and board, computers, and supplies. The distributions of these funds for qualified higher-education expenses are not subject to federal income tax. However, states may treat these disbursements differently. As a result, 529 plan investors need to understand the tax strategies that are available to them.

Staying in Control of Your Houston Business

Published on: January 22, 2015 | By McCulloch & Miller, PLLC

Many business owners fear losing control. Before they’re willing to address exit or estate planning options, they must first be assured of complete dominion over their business. So let’s look at how to lock in ownership.

Are you worried about losing control of your business?

A recent Forbes article, “Control Freaks Take Heart: How To Maintain Control Of Your Business,” offers some ways to assure firm control of a closely-held company.

New Year…New Financial Goals for Houston Families

Published on: January 21, 2015 | By McCulloch & Miller, PLLC

The New Year is a great time to regroup on your financial plans, reevaluate and/or create new financial goals. By sticking to your financial resolutions throughout the year, you can keep on track towards achieving your financial objectives in 2015 and beyond.

Make the New Year a happy one by getting your finances in order. Setting some basic goals can help make 2015 one of the best years yet.

Make a budget. Creating a budget is the key to long-term financial success. Nonetheless, a 2013 Gallup poll found that only one in three Americans maintained a budget. A budget takes on even more importance when you plan to move into retirement and leave a steady paycheck to live on a fixed income.

Blended Families Can “Step Up” Their Houston Estate Planning

Published on: January 20, 2015 | By McCulloch & Miller, PLLC

Couples planning to blend families often have to make financial arrangements that respect previous relationships with ex-spouses and their families. Issues range from childcare and eldercare to potentially complex matters involving businesses, investment assets and real estate. That’s why involving trained experts in stepfamily financial planning is a must.

Blending families can get complicated quite quickly when dealing with finances and the like, so you should speak with an experienced estate planning attorney on these matters.

The Kenyon Leadergives us a nice checklist of issues and solutions potential spouses and partners should consider in a recent article titled “Yours, mine and ours: planning step-family finances.”

Finding Financial Resources for Your Houston Parents

Published on: January 15, 2015 | By McCulloch & Miller, PLLC

We asked experts to let us in on a few resources most people overlook.

Need more cash to help care for mom and dad? A recent Oprah Magazine article, titled “Sanity-Saving Secrets For Caring For Your Aging Parents,” has some ideas where to look for funds to support your parents in retirement.

Here are some of those ideas from the original article: