In the corporate world, the phrase “holding company” often brings to mind visions of large conglomerates overseeing numerous businesses. While often associated with massive corporations, holding companies are not exclusive to them.  Holding companies offer numerous advantages, from tax efficiency to liability protection and privacy. However, these advantages come paired with challenges and complexity. Their strategic use can help entities achieve specific operational and financial goals, but they require diligent planning and keen legal and financial insight.  What is a holding compa ..read more

The IRS recently issued Notice 2024-35, which provides significant relief for certain beneficiaries of inherited IRAs. This notice waives the requirement for these beneficiaries to take required minimum distributions  (RMDs) for 2024 if they are subject to the SECURE Act’s 10-year payout rule.  Inherited IRA distribution rules Before the SECURE Act of 2019, beneficiaries of inherited IRAs could spread out their withdrawals over their lifetime, a strategy often referred to as the “stretch” IRA. This approach allowed beneficiaries to lower their annual tax liability. However, the ..read more

Authored by RSM US LLP Executive summary: Distribution options Employers establish retirement plans to provide a vehicle to set aside monies, whether funded by the employee or the employer, to be preserved for a retirement benefit. The rules related to when an employee can take a distribution from their retirement plan account are restrictive considering the goal of preserving the retirement funds. SECURE 2.0, enacted on Dec. 29, 2022, included provisions that loosen some of the restrictions on withdrawals from a retirement plan. The additional options available give plan sponsors flexibility ..read more

Authored by RSM US LLP Executive summary The IRS released new guidelines regarding the tax treatment with respect to Department of Energy (DOE) Home Energy Rebate Programs funded by the Inflation Reduction Act of 2022. According to the guidelines, homeowners who receive rebates should consider them as purchase price adjustments which are not includible in their gross income. On the other hand, businesses that receive rebates in connection with the sale of goods or provision of services to a purchaser must report them as taxable income. Additionally, those who are eligible for DOE rebates and ..read more

For many retirees, downsizing their homes isn’t just a choice—it’s a strategic move toward a more manageable and financially secure retirement. Whether it’s to reduce living expenses, adapt to a more accessible living environment, or simply adjust to a life that no longer requires as much space, the decision to downsize can be both practical and liberating. After children leave the nest and the demands of a larger home become less appealing, the lure of a simpler lifestyle grows stronger.  But there’s another aspect to consider: the capital gains presented by the equity built up in your h ..read more

Over the past year, the IRS has taken strides to digitize paper returns and make the filing process more convenient for taxpayers. On March 14th, the IRS unveiled an electronic filing (e-filing) system for Form 8300, Report of Cash Payments Over $10,000. This system is designed to streamline the reporting of cash transactions, reduce costs, and simplify business compliance.  It’s important to note that the recent introduction of an e-filing system does not change the criteria for who must file Form 8300, but it does mandate electronic filing for certain entities.  Who must file Form ..read more

Crossing the $100,000 income threshold is an exciting milestone. It’s an important step toward building lasting wealth. Yet wealth encompasses much more than just your annual income – it’s the culmination of all the assets you accumulate over time.  As an emerging high earner, the journey ahead is ripe with opportunities to transform earnings into enduring financial stability and prosperity. But building wealth transcends the confines of your paycheck. It requires a comprehensive financial plan to amass assets and retain more of what you earn.  In this article, we’ll offer five key t ..read more

Authored by RSM US LLP Executive summary: Credits for retirement plan sponsors Continued concerns by congressional leaders for employees to attain retirement security have led to legislative changes intended to make it more affordable for certain employers to sponsor a retirement plan. Non-refundable credits were already in place to help employers offset the administrative cost of implementing and maintaining a retirement plan, but the SECURE 2.0 Act of 2022 (SECURE 2.0) enhanced an existing credit and introduced new start-up and military spouse credits to incentivize plan sponsors to maintai ..read more

The Internal Revenue Service (IRS) has taken a significant step towards modernizing its filing process by releasing final regulations on February 21, 2023. These regulations, encapsulated in Treasury Decision 9972, mandate electronic filing for a broad spectrum of returns and documents, impacting virtually every organization that files returns with the IRS. This move, aligning with Section 2301 of the Taxpayer First Act of 2019, signals a shift from paper-based to digital submissions, aiming to streamline processes and enhance efficiency. The new e-filing requirements extend to a wide range of ..read more

The Inflation Reduction Act (IRA) of 2022 ushered in an era of renewed interest in clean and renewable energy investments, earmarking $400 billion in federal funds for energy and climate projects. The IRA incentivizes a broad array of clean energy projects from personal endeavors like purchasing electric vehicles to larger-scale projects designed to impact entire communities.  For project developers and industry innovators involved in energy storage technologies, microgrid controllers, fuel cells, geothermal initiatives, microturbines, and solar and wind technology, the IRA provides some ..read more