This post provides an overview of the Internal Revenue Code’s requirement for qualified appraisals when a taxpayer makes or wants to make a charitable contribution of crypto assets. Please note, substantiation does not merely include an appraisal. Taxpayers who contribute property and claim a deduction of more than $500 but not more than $5,000 must also obtain a contemporaneous written acknowledgment from the donee and maintain the additional written records needed to complete Form 8283. Background Donations of property over $5,000 must be appraised by a qualified appraiser to substantiate a ..read more

Stories From Women In Accounting For International Women’s Day and Women’s History Month our Women’s Employee Resource Group and our DEI Committee hosted a panel featuring six of our professionals from tax, audit, and operations. They had an inspiring and insightful conversation about their unique experiences navigating motherhood, external and self-made expectations, and being able to maintain a balanced life. Here are some highlights from our discussion: How Have You Set Boundaries From Your Work Life and Your Personal Life? “Nobody can set your boundaries for you and if you don’t do it, yo ..read more

On January 19, 2024, the Ways and Means Committee of the House of Representatives successfully propelled HR 7024 forward, known as the “Tax Relief for American Families and Workers Act of 2024.” The bill is the outcome of an agreement established earlier that week between the Ways and Means Committee’s Chairman Smith and the Senate Finance Committee’s Chairman Wyden. It is important to know that the bill is not yet law and still needs to be passed by both the House and Senate – and then signed into law by the President. If this bill does eventually become law, it is also possible the contents ..read more

For those charitably inclined, giving to charity provides not only the satisfaction of doing good but also valuable tax savings when leveraged properly (if one itemizes deductions). On top of that, charity donation is one of the most flexible tax planning tools because taxpayers can generally control the timing, manner, and amount of their donations to meet their needs. Cash Donations Outright gifts of cash (which include donations made via check, credit card and payroll deduction) are the easiest to make. The substantiation requirements depend on the gift’s value: Gifts under $250 can be su ..read more

Increases in Estate, Gift, and GST Exemptions and Exclusions for 2024 The IRS released the 2024 inflation-adjusted exemptions and exclusions for estate, gift, and GST tax in Rev. Proc. 2023-34 as follows: The estate and gift exemption amount (currently $12.92 million) will increase to $13.61 million for 2024 ($27.22 million per couple). The GST exemption will likewise increase by the same amount. The annual gift tax exclusion will increase from the current $17,000 up to $18,000 in 2024. The gift tax exclusion amount that can be given annually to a non-citizen spouse is increasing from $175,0 ..read more

The IRS recently issued its 2024 cost-of-living adjustments for more than 60 tax provisions. With inflation moderating slightly this year over last, many amounts will increase over 2023 amounts but not as much as in the previous year. As you implement 2023 year-end tax planning strategies, be sure to take these 2024 adjustments into account. Also, keep in mind that under the Tax Cuts and Jobs Act (TCJA), annual inflation adjustments are calculated using the chained consumer price index (also known as C-CPI-U). This increases tax bracket thresholds, the standard deduction, certain exemptions a ..read more

Topel Forman is thrilled to announce that we have been named a Top Workplace for the second consecutive year. This prestigious award, presented through the Chicago Tribune recognizes companies that prioritize a positive and engaging work environment, and we are honored to among the winners. The Top Workplace award is a testament to *our leadership’s commitment to fostering a workplace culture that values collaboration, innovation, and employee well-being. This recognition is especially meaningful as it reflects the feedback and satisfaction of our employees. Topel Forman looks forward to buil ..read more

Smart timing of income and expenses can reduce an individual’s tax liability, and poor timing can unnecessarily increase it. When one does not expect to be subject to the AMT in the current year or the next year, deferring income to the next year and accelerating deductible expenses into the current year may be a good idea. Why? Because it will defer tax, which usually is beneficial. However, when one expects to be in a higher tax bracket next year — or one believes tax rates may rise — the opposite approach may be beneficial, i.e., accelerating income will allow more income to be taxed the ..read more

Illinois Electric Vehicle Rebate Program The Illinois Environmental Protection Agency (IEPA) is offering a rebate of $4,000 to Illinois residents who purchase a new or used all-electric vehicle from an Illinois licensed dealer. The rebate is available for the purchase of any make or model of all-electric vehicle, including cars, SUVs, and trucks. The rebate is subject to the availability of funds, so it is important to apply early. Applications for the next rebate cycle will open on November 1, 2023, and close on January 31, 2024. Note, if you purchased a vehicle before the funding cycle open ..read more

Now that Labor Day has passed, the holidays are approaching. Many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate within generous limits without triggering any estate or gift tax. The exclusion amount for 2023 is $17,000. The exclusion covers gifts you make to each recipient each year. Therefore, a taxpayer with three children can transfer $51,000 to the children this year free of federal gift taxes. If the only gifts made during a year are excluded in ..read more