February 2018 Roundup for Professional Advisors

Professional Advisor Roundup February 2018
Developing appropriate exit strategies may depend on the type of assets business owners hold as well as the owners’ personal objectives and goals for the future of the business.

In our roundup for professional advisors, we explore annual gift exclusions, recommendations on avoiding tax scams, charitable giving strategies for business ownership interests and more. Read below to stay in-the-know on industry news.

Roundup for Advisors

Personal Planner: Gifts of Stock
What will the market do this year? Perhaps the best answer is, “It will go up and down.” Stock returns vary to a significant degree each year. However, long-term stock returns have been reasonably substantial. Between 1990 and 2010, the average stock return was about 6 percent. While there was a very substantial increase during 1990-2000 and decreases during 2002 and 2008, the total return over two decades was approximately 6 percent.

Washington News: Tax Filing Season Opens Door to New Scam
As the tax filing season moves into high gear, tax scammers continue to develop new strategies. Because it is difficult for IRS software to discover scams using actual taxpayer data, the tax scammers have developed a new concept. Scammers file large refunds using stolen information and implement creative tactics to convince the victim to send them the phony refund. Learn more about the new scam and what to do if you receive a phony return.

Case of the Week: Exit Strategies for Real Estate Investors, Part I
Karl is a successful real estate investor who bought and refurbished a building in a great area. He received a large offer on the building, but only owned it for four months, leaving him subject to short term capital gains tax rate. Can Karl sell the building and bypass the tax on the sale of the property? He wants to reinvest the full sale proceeds in an income-producing investment, is this possible?

Article of the Month: Charitable Giving Strategies for Business Ownership Interests – Part III
Business owners may find that adding charitable components to their business exit plans will help achieve many of their goals. Accordingly, developing appropriate exit strategies may depend on the type of assets owners hold as well as the owners’ personal objectives and goals for the future of the business. This third and final installment of the series will discuss charitable gifts from owners of partnership interests.

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