Tax Planning for High-Net-Worth Families After the TCJA #047

11/30/18 • 30 min

The confluence of all of the changes under the Tax Cuts and Jobs Act (TCJA) paired with the complexities of the existing tax law make tax planning and compliance more challenging for many high-net-worth individuals and families. Tune in to hear how tax and wealth transfer planning has changed under the TCJA as host Damien Martin sits down with guests Steve Bigge, Chris Hesse and Marv Hills to discuss key takeaways from a joint tax planning symposium held between BKD, CliftonLarsonAllen, Crowe and Keebler & Associates.

Here’s a look at what’s inside our latest episode:

[ 03:34 ] Background on the Tax Planning for High Net Worth Symposium
[ 07:54 ] Marital deduction formulas and funding
[ 09:46 ] Roth conversion planning after the TCJA
[ 10:20 ] Unwinding “bad” estate planning
[ 13:01 ] Break points on income tax and managing taxable income
[ 14:51 ] Charitable giving after the TCJA
[ 16:52 ] Social security planning
[ 17:59 ] Format of the symposium and the “ah ha” moments
[ 19:23 ] Elect out of bonus depreciation and use Internal Revenue Code §179 expensing
[ 20:28 ] Small business taxpayers after the TCJA
[ 22:08 ] Will the increased estate tax exemption stay?
[ 26:15 ] Planning with Spousal Lifetime Access Trust

BIO FOR GUESTS

Steve Bigge is a partner with Keebler & Associates, LLP, whose emphasis is in developing comprehensive financial, estate and income tax analyses and wealth transfer techniques, including FLP, GRATS, CRTs, ILITs and IDGTs. He specializes in estate, gift and retirement planning, charitable gift planning and trust and estate administration.

Connect with Steve on LinkedIn

Chris Hesse is a principal in CliftonLarsonAllen’s National Tax Office and has more than 35 years of tax experience in public accounting, with more than 30 years of speaking and training experience before tax professionals. His career has included tax leadership of a 200-person practice and extensive tax writing and analysis services.

Connect with Chris on LinkedIn

Marv Hills is a partner in the Crowe LLP private client tax services group and also leads the service delivery team. He joined Crowe in 1981 and specializes in estate planning and tax consulting for high-net-worth individuals, particularly owners of closely held businesses.

Connect with Marv on LinkedIn

ADDITIONAL RESOURCES

Symposium speakers mentioned on the podcast

Other resources mentioned on the podcast

Charitable Giving Strategies After Tax Reform presented by Chad Gassen and Corey Ziegler (Greater Kansas City Community Foundation)
Previous episodes of “Simply Tax”

GET MORE “SIMPLY TAX”

A complete archive of our episodes is available on our website and YouTube playlist.

We’d love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

LinkedIn | Twitter | Instagram

Here’s a look at what’s inside our latest episode:

[ 03:34 ] Background on the Tax Planning for High Net Worth Symposium
[ 07:54 ] Marital deduction formulas and funding
[ 09:46 ] Roth conversion planning after the TCJA
[ 10:20 ] Unwinding “bad” estate planning
[ 13:01 ] Break points on income tax and managing taxable income
[ 14:51 ] Charitable giving after the TCJA
[ 16:52 ] Social security planning
[ 17:59 ] Format of the symposium and the “ah ha” moments
[ 19:23 ] Elect out of bonus depreciation and use Internal Revenue Code §179 expensing
[ 20:28 ] Small business taxpayers after the TCJA
[ 22:08 ] Will the increased estate tax exemption stay?
[ 26:15 ] Planning with Spousal Lifetime Access Trust

BIO FOR GUESTS

Connect with Steve on LinkedIn

Connect with Chris on LinkedIn

Connect with Marv on LinkedIn

ADDITIONAL RESOURCES

Symposium speakers mentioned on the podcast

Other resources mentioned on the podcast

Charitable Giving Strategies After Tax Reform presented by Chad Gassen and Corey Ziegler (Greater Kansas City Community Foundation)
Previous episodes of “Simply Tax”

GET MORE “SIMPLY TAX”

A complete archive of our episodes is available on our website and YouTube playlist.

We’d love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

LinkedIn | Twitter | Instagram

Previous Episode

Do You Have 199A Confusionosis? #046

Despite recent guidance, uncertainty and confusion remain while taxpayers and tax practitioners alike await final guidance on new Internal Revenue Code Section 199A. Cut through the confusion on the 20 percent deduction everyone’s been talking about as two previous Simply Tax guests join host Damien Martin to discuss what we know (and what we don’t) as of November 20, 2018. First, returning guest Amy Wang—American Institute of CPAs (AICPA) tax policy and advocacy senior manager—provides an update from the AICPA’s Qualified Business Income (QBI) Task Force. Then, returning guest Glen Birnbaum—shareholder at Heinold Banwart, Ltd.—shares industry insights for farmers, considerations for choice of entity and more.

TIMESTAMPS OF WHAT’S COVERED

Interview with guest Amy Wang

[ 02:29 ] Initial reactions to the proposed guidance from the AICPA QBI Task Force
[ 03:28 ] Requested guidance included in the proposed regulations
[ 04:27 ] Writing a comment letter in 45 days
[ 06:10 ] Oral testimony by Troy Lewis
[ 07:05 ] The priority concern and number one question on the proposed regulations
[ 08:54 ] Recommendation regarding anti-base and de minimis rules
[ 11:45 ] Prioritizing recommendations
[ 14:17 ] Who’s on the task force and how they worked together on the comment letter
[ 15:27 ] When we’ll see final guidance and the form for calculating the QBI deduction
[ 18:27 ] The best way to learn how the calculations will work and other considerations

Interview with guest Glen Birnbaum

[ 23:06 ] Concerns with the definition of “dealing in commodities”
[ 24:54 ] Are farmers providing services?
[ 27:45 ] Guidance on the QBI deduction for co-ops
[ 29:14 ] Rental trade or business considerations for farmers
[ 31:06 ] Should you take 199A-related action while we await final guidance?
[ 34:26 ] Tax reform-related takeaways from Chuck Levun and Michael Cohen
[ 39:49 ] What it means that equipment no longer qualifies for like-kind exchanges

BIO FOR GUESTS

Amy Wang is a member of the AICPA Tax Policy & Advocacy Team, whose mission is to serve the public interest by helping AICPA members be the most trusted professional providers of tax services while also advocating sound tax policy and effective administration. She plays a key role in the development of AICPA testimony for tax-related congressional hearings.

Connect with Amy on LinkedIn | Follow Amy on Twitter

Glen Birnbaum is a shareholder at Heinold Banwart, Ltd., where he provides accounting and tax advisory services for a range of entities including agriculture, manufacturing and contracting companies. In particular, he enjoys tax planning and working with clients on succession planning and new initiatives.

Connect with Glen on LinkedIn | Follow Glen on Twitter

ADDITIONAL RESOURCES

Mentioned by Amy on the podcast

Mentioned by Glen on the podcast

Levun Goodman & Cohen, LLP Tax Planning Forum

More on Section 1202: Episode 26 – Is Section 1202 for You?

More on choice of entity considerations under the Tax Cuts and Jobs Act.

Next Episode

Tax Planning with Losses #048

Host Damien Martin sits down with BKD’s James Anderson to cut through the complexities of the loss limitation rules to demonstrate why you need an understanding of both new and existing tax law to apply these rules after the Tax Cuts and Jobs Act (TCJA). Join Damien and James as they break down the hobby and passive activity loss rules, explain how these rules applied in a recent United States Tax Court case and discuss changes under the TCJA.

TIMESTAMPS OF WHAT’S COVERED

[01:06] Overview of the hobby loss rules
[02:22] How hobby losses changed under the Tax Cuts and Jobs Act (TCJA)
[03:50] Robison v. Commissioner, T.C. Memo. 2018-88
[05:39] Applying the nine tests under the hobby loss rules in Robison
[08:13] Applying the hobby loss rules in real life
[15:08] Tax basis and at-risk loss limitations
[17:21] Overview of the passive activity loss rules and how they applied in Robison
[23:24] What losing the case means for the taxpayers in Robison
[25:40] The new excess business loss limitation under the TCJA
[27:41] This was a relatively simple case
[30:20] The TCJA layered on top of the existing tax law
[34:00] Why tax accountants are popular at cocktail parties
[35:52] James’ key takeaways from this case
[38:37] Loss limitations and year-end planning

BIO FOR GUEST

James Anderson is a partner in BKD’s Lincoln, Nebraska practice and a member of the firm’s National Construction & Real Estate Group, National Manufacturing & Distribution Group and tax committee. James is experienced in providing corporate and individual taxation assistance to construction companies, financial institutions, manufacturers and retailers across the Midwest. He also consults with clients regarding accounting method changes, multistate taxation, choice-of-entity analyses, tax controversy support and business combinations.

Connect with James on LinkedIn

ADDITIONAL RESOURCES

An Interview With David Kirk: Beware The New Excess Business Loss Limitation by Tony Nitti (Forbes)

GET MORE “SIMPLY TAX”

A complete archive of our episodes is available on our website and YouTube playlist.

We’d love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

LinkedIn | Twitter | Instagram